Pay by pre-authorized debit
Pre-authorized debit (PAD) is a secure, online self-service payment option for individuals and businesses to pay their taxes. You set the payment amount and authorize the Canada Revenue Agency (CRA) to withdraw it from your Canadian chequing account on the date, or dates, you choose.
Your selected first payment date must be at least five business days from the date your PAD agreement is created. See federal holidays for a list of non-business days.
If you are a business, you can use pre-authorized debit through GST/HST NETFILE to pay a balance due.
Create a pre-authorized debit using EFILE
- You can authorize your electronic filer to set up a PAD agreement on your behalf to make a one time payment. When these agreements are set up by an electronic filer, they are for the current tax year only and cannot be used for instalments or T2 returns.
- You’ll have to fill out and sign Part C of Form T185, Electronic Filing of a Pre-authorized Debit Agreement, to authorize your electronic filer to send a PAD agreement on your behalf. Both you and your electronic filer have to keep a copy of the signed form.
- The electronic filer uses certified EFILE software to send the PAD information to the CRA through a secure web service. Upon successful transmission, a confirmation number will be received within the software. Go to EFILE certified software for a complete list of software.
How to create a pre-authorized debit agreement for individuals
To create a PAD, you have to be registered for My Account. Once signed in:
- Select the ‘Proceed to pay’ button and then select the ‘Schedule’ option to create your PAD agreement.
- Access ‘Manage pre-authorized debit’ under the Related services within the Accounts and payments section to view, modify, cancel or skip a payment.
- A PAD agreement can also be created within MyCRA, for an amount owing, by selecting the ‘Proceed to pay’ button and the 'Schedule' option. Your credentials are the same as in My Account.
How to create a pre-authorized debit agreement for businesses
To create a PAD you have to be registered for My Business Account. Once signed in:
- Select the ‘Proceed to pay’ button and then select the ‘Schedule’ option to create your PAD agreement.
- Access ‘Manage pre-authorized debit’ from the Business balance and services section on the Business Overview page to view, modify, cancel or skip a payment.
- A PAD agreement can also be created within BizApp by selecting the ‘Proceed to pay’ button and the ‘Pay later’ option. Your credentials are the same as My Business Account.
Business representatives are unable to create a PAD through ‘Represent a client’ on behalf of their client. The PADs payment option is only available through My Business Account.
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