Transferring instalment payments
Our transfer policy allows for the movement of excess instalment payments. You can move an excess amount from one account to another account where there is:
- an existing balance
- a required instalment amount
We will transfer an amount to pay an outstanding balance on a corporation, a GST/HST, or an employer account or to cover a required payment on an employer account.
Instalment payments may not be transferred to another period or account as an advance deposit for an anticipated reassessment.
We will consider transfers within the same account or between related accounts of a corporation based on the following guidelines:
- Only an authorized officer of the corporation can ask for a transfer of instalment payments
- The request has to specify how you want to apply the payments
- You can transfer funds between tax years, in the same account or to another account, to pay an existing balance, required instalments or a remittance on your employer account
- You can transfer either part of a payment or an amount made up of several payments
- You can ask for more than one transfer during the year
- You cannot transfer a payment after we have assessed the income tax return for the tax year in question
You can transfer a payment online from one interim period to another or to pay an amount owing within a program account and between program accounts of the same nine-digit business number and immediately view the updated balance, including interest, if applicable, using the "View and pay account balance" service. You can also make an online request to transfer a payment using My Business Account's "Enquiries service". Go to:
- Represent a Client, if you are an authorized representative or employee
- My Business Account, if you are the business owner
You can also write to your tax centre's Corporation Services section.
You must make every effort to remit your payments to the correct account. Our transfer policy is meant to provide you with flexibility in reallocating payments when it has been determined that the instalment requirement previously estimated has been overpaid. If you make continuous requests for multiple transfers, we may ask you to explain why in writing.
Notes
For calculating interest, transferred payments keep their original payment date [section 221.2 of the Income Tax Act]. We consider any other allocation not to have occurred.
If you do not file an income tax return within three years of the end of the tax year, instalment payments correctly processed to this tax year will not be refunded [subsection 164(1) of the Income Tax Act]. However, you may request to apply credits from this tax year to an established debt. For more information see Re-appropriation of T2 statute-barred credits.
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