Tax-AdVise

07/11/2026

For businesses including some proprietors

Quarterly Instalment Remittances.
When you are required to make quarterly tax instalment payments, in addition to interest on the balance owing when you file your return, you may be charged instalment interest.

But that will only occur if your instalments are late or too small. If you discover that your previous instalments for the year are insufficient, you can reduce your instalment interest by making larger instalments for the year, sooner, that is before the June 15, September 15 or December 15 deadline.

Note that farmers and fishers have until December 31, to make a single instalment remittance for the year, based on 2/3 of their anticipated taxable income.

Once you’re notified of interest payable, no further interest will be charged if the total balance due is paid promptly – this generally means within 20 days of the notice.

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07/10/2026

Interest – Taxable and Deductible?

In addition, any interest paid to you by the CRA is taxable and must be reported on your tax return for the year the interest is received.

If the CRA then reassessed your return, created a balance due and you resulting in repaying any of that refund interest you reported, you can claim that repayment as a deduction. Otherwise interest and penalties you pay to the CRA are not deductible. Nor, by the way, is any interest on a loan to contribute to a registered account like an RRSP, TFSA or FHSA.

get help now, book at www.kodafa.com

07/09/2026

Tax Planning.

The general rule for paying interest of any kind, is that you should, whenever possible, ensure the interest paid is tax-deductible, for example when paid to acquire an income-producing asset.

Interest paid to the CRA is never deductible and cannot be linked to an income-earning investment, so paying interest to the CRA is to be avoided whenever possible.

To ensure you don’t owe interest to the CRA, you should:

Pay your taxes each year by April 30, even if you’re self-employed and your tax return is not due until June 15
If you’re required to make instalment payments, make them on time
If you’re reassessed, respond immediately. If the reassessment is valid, pay the taxes promptly

Get help, book now: www.kodafa.com

07/08/2026

When you owe to CRA

The interest rate owed is compounded daily. That’s a real wealth eroder. In fact that real annual interest rate, which is also known as the effective annual rates is 7.25%. It may be less expensive to borrow from the bank than from the CRA. Check this out and make the comparisons; then pay off CRA first if you can.

07/07/2026

When CRA owes you.

You will note that when CRA owes you money, they’ll pay you compounding interest at the prescribed rate of interest plus only 2% more. Worse, your interest payment only begins at the latest of:

30 days after the balance due date
30 days after you file your return
the day you overpaid your taxes

Stop Making Interest-Free Loans to CRA. As much as people love their tax refunds, try not to overpay your taxes at source. That’s just an interest-free loan for CRA. Some tips:

Increase deductions and credits: make larger charitable donations before year end, RRSP contributions within 60 days of the year end, and be sure to write off all the deductions you are entitled to.
Whenever possible, arrange to have a balance due of less than $3,000 each year when you file your return. That keeps you out of the quarterly tax remittance profile.
If you are making instalments, estimate your income taxes for the year before making your last instalment (December 15 or for farmers or fishers, December 31). Don’t make a payment if you’ve paid enough; make an overpayment if your instalments were deficient.
If you have a refund coming, file as early as possible. Then pay off non-deductible debt, like credit card debt.

Want help? Contact us! www.kodafa.com

07/07/2026

Owe Money to CRA? Here’s What to Know

Evelyn Jacks

Did you know that after the two filing deadlines for 2026 – June 15 for proprietors, April 30 for everyone else – over 7.5 million people owed money to the CRA? If that includes you, it’s important to pay promptly and understand the cost of current interest rates. Here’s what to know:

Owing Money to CRA is Expensive. The prescribed rates of interest for the first two quarters of 2026 have remained unchanged at 3% but, CRA will charge you more – much more – if you owe:

7% - that’s the interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums
5% - that’s what CRA pays when they owe you money – 2% less – and then just from the date of filing if that’s later than the due date.
3% - that’s the interest rate used to calculate taxable benefits for employees and shareholders. That’s an income splitting opportunity now til September 30 at least; as the prescribed rates could change again for the last quarter of the year. Consider planning to make inter-spousal investment loans.
3% - the interest rate to be paid on corporate taxpayer overpayments – what CRA owes your corporation if it has overpaid.
6.62% - the interest rate for corporate taxpayers’ pertinent loans or indebtedness on tax elections available.

06/20/2026

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06/12/2026

For self-employed individuals and those with a self-employed spouse or common-law partner, the June 15, 2026, deadline for filing the 2025 income tax and benefit return is approaching. The CRA offers support through various resources to help you understand your tax obligations and meet key deadlines. Please contact us if you need assistance with the filing process to avoid last-minute complications.

05/06/2026

If you feel this way: let me help you. Make you appointment today at www.kodafa.com

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04/20/2026

Tax season is wrapping up next Thursday, April 30th! ⏳

If you haven’t filed yet, now’s the time—avoid late filing fees and unnecessary interest. A quick step today can save you money and stress tomorrow.

Need help or have questions? Reach out before the deadline!