Instalment Requirements / 49
Notes, continued
For federal purposes, a penalty may also apply to individuals who are required to pay
instalment interest in excess of $1,000 (see the table “Selected Federal Penalty and
Offence Provisions” for details). For Québec purposes, an additional interest charge of 10%
may apply (see the table “Selected Provincial Penalty Provisions”).
In February and August each year, the CRA and Revenu Québec send instalment reminder
notices to individuals advising them of their quarterly instalment obligations. The February
notice indicates the amounts to pay for the March 15 and June 15 instalments, while the
August notice indicates the September 15 and December 15 instalment amounts. The
instalment amounts reflected in these reminder notices are generally calculated based on
the individual’s second preceding year payment method (see note (5)).
Individuals may choose to pay instalments based on the CRA’s or Revenu Québec’s
instalment reminder notices, or they may calculate them using one of the other methods
discussed in note (5).
Self-employed individuals must also include CPP/QPP contributions in these instalment
calculations.
The final balance of federal and provincial tax owing for all individuals is due on or before
April 30 of the following year.
(7) For federal purposes, farmers and fishers are required to make one instalment payment
by December 31 if their net tax owing is more than $3,000 in the current year and in each
of the two preceding years. Farmers and fishers resident in Québec are required to make
one instalment payment by December 31 if their net tax owing is more than $1,800 in the
current year and in each of the two preceding years.
Instalment reminder notices reflecting the amount that has to be paid by the December 31
due date are sent each year in November.
Instalment requirements can be calculated by one of two instalment payment options:
• Current year estimate—two-thirds of the current year’s estimated net tax owing
• Prior year method—two-thirds of the preceding year’s net tax owing.
The final balance of federal and provincial tax owing is due on or before April 30 of the
following year.
Tax Instalment Choices
Amount Of Quarterly Payment
Current year estimate
¼ on each quarterly due date
5,6
Prior year method
¼ on each quarterly due date
5,6
Second preceding year method
Q1 and Q2 based on second preceding year,
and Q3 and Q4 based on prior year
5,6
Tax authority reminder notices
As stipulated in Canada Revenue Agency or
Revenu Québec notices
7
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Current as of September 30, 2013