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CRA temporarily ceases enforcements of requirements to pay

As part of the Canadian government’s response to the COVID-19 pandemic, the Canada Revenue Agency (CRA) instructed employers and banks in March 2020 that they are not required to comply with or to make remittances based on existing “requirements to pay” (RTPs), which are a method the CRA uses to collect debts from taxpayers who have not paid amounts owing.

The CRA has since clarified that this measure applies beyond employers and banks to other parties responsible for complying with and remitting taxes based on RTPs. Consequently, employers and other pension plan administrators that ordinarily would be required to make deductions from a pensioner’s pension payments further to an RTP should cease doing so.

The CRA has indicated that the suspension of RTPs is temporary, and will continue to be re-evaluated. Employers and pension plan administrators with existing RTPs should remain apprised of the situation.

The suspension of active RTPs is one of a number of measures introduced by the CRA during the COVID-19 pandemic intended to assist individuals and businesses having difficulty filing tax returns or experiencing cash-flow challenges.

News & Views - July 2020 (PDF)