If you are unable to pay your tax debt immediately in a lump sum, tell us right away. We may be able to reach a payment agreement for you to pay your entire debt (including interest) over a period of time, depending on your ability to pay.

However, it's still best to pay your tax debt in a lump sum to:

• avoid additional interest
• ensure no collection measures are taken against you

How a payment agreement can help you

A payment agreement gives you peace of mind by enabling you to settle your tax situation with monthly payments tailored to your financial situation. You also:

• minimize additional interest
• avoid collection fees being added to your debt
• prevent collection measures (either administrative or legal) from being taken against you, your income or your assets

Types of agreements

The following types of payment agreements are available, depending on your situation:

• Payment Agreements for Individuals
• Payment Agreements for the Self-Employed (Individuals in Business)
• Payment Agreements for Corporations (Businesses)

Application for cancellation or waiver of interest, penalties or charges

In some situations, you can apply to have us cancel or waive interest, penalties or charges. For information on the situations and how to apply, see Application for Cancellation or Waiver of Interest, Penalties or Charges.

If your application is accepted, it will take effect once you have completely paid the portion of your debt we did not cancel or waive.

If you are not satisfied with our decision, you can request a review of it.

Insolvency or bankruptcy

If you can't pay your tax debt because of your financial situation or you are considering declaring bankruptcy, go to the Office of the Superintendent of Bankruptcy section of the Government of Canada website.