Prepaying reassessments – Advance deposits

If you anticipate a reassessment to a previous tax year, you may choose to make a payment in advance (advance deposit) to reduce interest charges.

To make advance deposits, use Form RC159, Amount Owing Remittance Voucher. For information on how to get this form, see Payment vouchers.

To assist us in processing your payment, clearly indicate that it is an advance deposit and include your 15-character business number and the tax year-end for which the advance deposit is intended.

If you are making an advance deposit for multiple tax years, include a list of the individual tax years for which you are expecting a reassessment and the amount to be held for each year. We will hold the advance deposits for this purpose and apply them when we process the reassessments.

Note

If the required information (for example, business number, tax year-end) is not provided, the payment will be refunded.

Advance deposits are reviewed on a regular basis to make sure that there is a risk of reassessment for the period(s) in question and that the amount on deposit is reasonable. During this review process, we may contact you to confirm that the advance deposit is still needed.

There are guidelines limiting the transfer of an advance deposit once it has been assigned to a specific tax year; however, you can transfer an advance deposit to pay:

  • an amount owing;
  • an instalment for an unassessed tax year on your corporation account;
  • an instalment for an unassessed period on your GST/HST account; or
  • a remittance due on your employer account.

Note

Once an advance deposit is transferred to your instalments, it takes on the rules for instalment payments.

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