Pre-Authorized Debit Payments Coming for EFILE

A new tax form has been released this summer, giving clients the ability to authorize CRA to reach into their bank account to pay a balance due. The new Form T1-83 for tax year 2016 was released online in the heart of the summer, on July 22, 2016, and it became available for print on August 3.

The pre-authorized debit agreement payment method was previously available only through My Account. However, for 2016 and subsequent years, clients may, at the time of filing, authorize CRA to take the payment out of their bank accounts. (Some tax software makes this option available for 2015 returns as well.)

If the taxpayer has a balance due on filing, the new section F of the T1-83 can be completed, allowing CRA to remove a specified amount from the taxpayer’s bank account to pay the balance due on the current return. The taxpayer must sign and date the section as well as specifying the bank account information and the amount to be withdrawn by CRA.

The amount will be withdrawn on the date specified, which must be at least five days after the transmission date (but no more than one year after the transmission date).

CRA will withdraw the specified amount on the specified date regardless of whether the return has actually been assessed or if the assessment results in a different balance due.

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