Timeline for Payments to CRA don't count toward your balance with CRA until you file your taxes?
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7 events
| when toggle format | what | by | license | comment | |
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| Dec 20, 2022 at 2:08 | comment | added | user2153235 | Yeah, I guess. I mean, I'm familiar with government bureaucracy, but as far as which debt to service, it has always been the one that incurs the greatest marginal interest. But when you start introducing first costs like the 5% penalty, I can see how that makes a difference because you might want to service that amount owing even if another debt was incurring more cost per unit time. That's assuming that you can do so to avoid the late penalty, i.e., it isn't already late. | |
| Dec 19, 2022 at 18:15 | comment | added | Grade 'Eh' Bacon | @user2153235 It matters because different types / years of tax balances would have different due dates and therefore different penalty calculations associated. The complexity would only matter in .01% of cases, and in a perfect world would be pretty easy to work the way you expect things to, but given that this is government we're talking about... | |
| Dec 19, 2022 at 16:55 | comment | added | user2153235 | I find that odd. I would expect that what you owe CRA is just a running balance, regardless of what things gave rise to the amounts that you owe them. Payments would then simply reduce that single number (running balance owing). Very obvious why I didn't become an accountant. | |
| Dec 19, 2022 at 16:34 | comment | added | Grade 'Eh' Bacon | @user2153235 Okay it makes a lot more sense to me that your payment wasn't applied properly - 1st payment of the year, they quite likely know is related to that upcoming tax filing. Additional payment they are anticipating less and likely don't have an automated allocation rule for where to place those funds. Archaic, yes, but at least has some basis in reason [ie: are you making a payment for GST, or a back tax year, or what?] - this is where you need to use soft skills to grease the wheels - to correct a problem caused by an unthinking bureacracy. | |
| Dec 19, 2022 at 16:27 | comment | added | user2153235 | Thanks, Grade 'Eh' Bacon. I will call. I found that they did apply the 1st of my two pre-payments (2021-04-01), buried in the downloaded data from CRA, and it's only the 2nd one (2022-04-11) that wasn't applied. I also went through the penalty and arrears calculations and they are completely discrepant in gross ways, even with proper daily compounding of monthly nominal interest for arrears. The total, however, is slightly less than my calculations, so nowithstanding the nonsensicality of the intermediate numbers, I'm just going to ask them for mercy. | |
| Dec 19, 2022 at 16:23 | vote | accept | user2153235 | ||
| Dec 19, 2022 at 15:15 | history | answered | Grade 'Eh' Bacon | CC BY-SA 4.0 |