A CRA pre-authorized debit agreement can simplify your tax payments and help you stay on top of your finances. With this agreement, you can authorize the Canada Revenue Agency (CRA) to automatically withdraw your tax payments from your bank account on the scheduled due dates.
The benefits of a pre-authorized debit agreement are clear: you`ll never forget a payment, and you won`t have to worry about incurring late payment penalties or interest charges. It`s an easy and efficient way to manage your tax obligations.
To set up a CRA pre-authorized debit agreement, you`ll need to complete Form RC366, “Direct Deposit Request – Canada Revenue Agency”. This form is available online or from your local CRA office. The form requires basic information, such as your name, address, and bank account details.
Once you`ve completed the form, you can submit it to the CRA by mail or online. The CRA will then process your request and begin withdrawing your tax payments from your bank account on the scheduled due dates.
It`s important to note that you can cancel or modify your pre-authorized debit agreement at any time by contacting the CRA. You`ll also need to ensure that you have sufficient funds in your bank account on the scheduled due dates to avoid any returned payment charges.
In summary, a CRA pre-authorized debit agreement can help simplify your tax payments and ensure that you stay on top of your financial obligations. It`s an easy and efficient way to manage your taxes, and you can cancel or modify the agreement at any time. If you`re interested in setting up a pre-authorized debit agreement with the CRA, be sure to complete Form RC366 and submit it to the agency.
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