Entrepreneurship & Small Business

Prepaying tax for corporation after reassessment

  • Last Updated:
  • Dec 7th, 2017 11:24 pm
[OP]
Newbie
Jun 13, 2013
23 posts
8 upvotes
Toronto, ON

Prepaying tax for corporation after reassessment

We filed our corporation's taxes earlier this year. Our corporation had paid more than enough tax in advance and got a refund from the CRA. However, later I noticed that 3 expenses were understated by a total of ~$700, which resulted in an additional tax liability of ~$100 (small business tax rate). I filed the amended tax return using online filing more than 2 weeks ago. CRA's website still shows "Reassessment received" as the status. I'd like to pay the additional tax as soon as possible to prevent any interest/ avoid any penalties, if at all. I just can't find any option to pay this kind of tax. Is there any hidden option or should I just go ahead and use one of the existing options (Payment on filing/ Interim Amount owing/ Balance due) ?
Thanks.
2 replies
Deal Addict
Aug 28, 2007
1813 posts
227 upvotes
Calgary
We are talking about a small amount so it may be better to make an Interim Payment of $100 to your CRA account for the current tax year right away.

Then when CRA sends out their new re-assessment for your 2017 taxes you can contact them and tell them the funds are already sitting in your 2018 tax year. Ask them to transfer the payment from your 2018 account. They will most likely waive any penalties or interest (if any).
[OP]
Newbie
Jun 13, 2013
23 posts
8 upvotes
Toronto, ON
Thanks for your reply. The advance interim taxes paid for our corporation for 2017 far exceed the actual amount that we will end up owing for 2017 anyways. So, I guess we should be fine.
For this, however, I looked into it further. Seems like "Amount Owing" is the right option.

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