Personal Finance

Paying taxes due for other people?

  • Last Updated:
  • Apr 18th, 2013 8:10 am
Deal Addict
Apr 21, 2012
1770 posts
1140 upvotes
Markham

Paying taxes due for other people?

Well, I got a nasty long distance call from my cousin last night requesting that I pay his taxes for him.
He filed his tax before he leaves Canada, and now he has about $1,000 tax owing to the CRA. He is in Korea vacationing right now. And the deadline to pay any taxes owing is due on April 30th. He will be back in late May to return the money.

Can I do an online banking bill payment to CRA using his SIN? Will the CRA withhold that money because it is coming from someone other than the tax payer associated with the SIN (money laundering issue I guess)?.

I don't want to do it, because I will be a thousand dollar poorer for at least a month. I know he will return my money for sure.
20 replies
Sr. Member
Jul 18, 2009
679 posts
103 upvotes
Umm... Korea does have computers, right? So why can't he pay with his own online banking?
Deal Addict
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Nov 18, 2007
3531 posts
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Corktown
Does your cousin not have internet access? Does your cousin not have online access to his bank accounts?

He can simply make a bill payment to the CRA using his SIN. I do the same for all my family taxes, including the in-laws that are not computer savvy.

This is his problem - I would not make it mine.

I bet he could call his bank and have the payment made. Make him work for it. At the very least he should e-mail money transfer the funds to you and then you can make his payment.
Deal Addict
Aug 30, 2011
3537 posts
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Ottawa
I've paid my sons' income taxes with online banking before. All you need is the SIN. But I don't see why your cousin can't do that himself.
Deal Fanatic
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Jan 27, 2007
5116 posts
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T.
OttawaGardener wrote: I've paid my sons' income taxes with online banking before. All you need is the SIN. But I don't see why your cousin can't do that himself.
+1. Any bank has online payment to CRA. Cousin broke?
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Deal Addict
Apr 21, 2012
1770 posts
1140 upvotes
Markham
Don't know why he wanted me to pay for him.

I lend him some money before in the amount of $2,000 and he returned it to me within a month. So the money wouldn't be a problem. My only concern is how does CRA view a transaction like this. I will give him a call and tell him to call TD Bank to pay his bill.
Deal Fanatic
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Jan 27, 2007
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T.
They dont from whos bank account the money comes from as long as they get paid.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Deal Addict
Feb 25, 2007
1568 posts
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Ottawa
+1. I have paid my non computer savvy relatives' taxes online from my bank account, specifying their SIN as the payee account number. No problems.
Deal Expert
User avatar
Jul 30, 2007
33234 posts
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Toronto
Does your cousin have any collateral (worth $1000) for you to pawn or sell, in case he feels he does not want to come back to Canada ?
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
($1000 x 5%) / 12 = $4.16

Can't your brother manage $4.16 in late payment interest?

Better him short an extra $4.16 than you being short $1000
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Jr. Member
Sep 10, 2010
154 posts
27 upvotes
Doesn't matter to the CRA if the money is not paid by the actual taxpayer who owes taxes, especially if you are using a Canadian bank account to pay it.
Deal Expert
User avatar
Aug 18, 2005
21223 posts
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Burlington-Hamilton
Uranium101 wrote: Well, I got a nasty long distance call from my cousin last night requesting that I pay his taxes for him.
He filed his tax before he leaves Canada, and now he has about $1,000 tax owing to the CRA. He is in Korea vacationing right now. And the deadline to pay any taxes owing is due on April 30th. He will be back in late May to return the money.

Can I do an online banking bill payment to CRA using his SIN? Will the CRA withhold that money because it is coming from someone other than the tax payer associated with the SIN (money laundering issue I guess)?.

I don't want to do it, because I will be a thousand dollar poorer for at least a month. I know he will return my money for sure.
Uranium101 wrote: Don't know why he wanted me to pay for him.

I lend him some money before in the amount of $2,000 and he returned it to me within a month. So the money wouldn't be a problem. My only concern is how does CRA view a transaction like this. I will give him a call and tell him to call TD Bank to pay his bill.
So you're going to pay a debt because why? He yelled at you and bullied you? :facepalm:

OP, please head down to your local Canadian Tire. Backbones can be found on aisle 3.

I don't think you even need to talk to this cousin. Just don't pay his taxes and let him deal with his own business. If he complains later, just tell him that you are not his daddy and you will not be taking care of his obligations.

(OTOH, if he had been polite about it, maybe he can wire you the money and you pay it on his behalf.)
- casual gastronomist -
Newbie
Apr 9, 2013
32 posts
6 upvotes
NORTH YORK
Glad to learn that I can pay another person's taxes using my account as long as I use their SIN. I have to do this for my less computer savy family as well.

Any idea if the same applies to HST sales tax owed (one member is a contractor)? Can I even pay that using online banking?
Deal Addict
Nov 11, 2004
2881 posts
5135 upvotes
ghostryder wrote: ($1000 x 5%) / 12 = $4.16

Can't your brother manage $4.16 in late payment interest?

Better him short an extra $4.16 than you being short $1000
I think it's 5%, as soon as its late

so 5% x $1000 = $50 x 1.01 for each additional month it is late.
Jr. Member
Sep 10, 2010
154 posts
27 upvotes
Happyfeet33 wrote: Glad to learn that I can pay another person's taxes using my account as long as I use their SIN. I have to do this for my less computer savy family as well.

Any idea if the same applies to HST sales tax owed (one member is a contractor)? Can I even pay that using online banking?
Are you talking about the GST/HST return? If you are, you can make a payment using CRA's My Payment service on their website. You would need the contractor's business number though.
Deal Expert
User avatar
Aug 18, 2005
21223 posts
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Burlington-Hamilton
Happyfeet33 wrote: Glad to learn that I can pay another person's taxes using my account as long as I use their SIN. I have to do this for my less computer savy family as well.
This actually works with other people's credit cards as well.

For example, I entered the credit cards of other family members (who live in other cities) in my online banking. If I need to give them money, I just pay it directly onto their credit card rather than spend $1.50 on the Interac EMT fee.

Just be careful to pick the right accounts when paying your own bills! One time I accidentally paid over $1000 onto someone else's credit card! :facepalm:
- casual gastronomist -
Deal Addict
Dec 28, 2006
2497 posts
138 upvotes
Saskatoon
Tilter wrote: I think it's 5%, as soon as its late

so 5% x $1000 = $50 x 1.01 for each additional month it is late.

The late filing penalty is 5% of the balance owing plus 1% per month to a max of 12 months.

But....

Since the OP's brother already filed his return, there would be no late filing penalty. Only the interest which is currently 5% annual.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Addict
User avatar
Sep 5, 2007
1295 posts
39 upvotes
BC
Wow. Why do you let people walk all over you?? You hand out money like it's candy. There's no reason why your cousin can't pay his taxes while in Korea. Or he can just pay when he gets back in May and pays a late penalty fee. What kind of person who is asking you a huge favour calls up and rudely demands that you pay his taxes????!!!! My guess is that this hasn't been the first time and won't be the last time that this guy pushes you around. Stand up for yourself. There's a difference between being compassionate and being a door mat.

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