The advantages of this “pre-authorized to the CRA” method of taxes payments are:
- Regular checking accounts with all Canadian banks are accepted
- No extra banking/handling fee
- Best for scheduling tax instalments ahead
- It can also be used to pay taxes owed to CRA
- It’s powerful, i.e. self-employment can use it to pay HST; corporations can use it to pay to their various accounts such as RC, RT, RP, etc.
- Strong flexibility, previous authorizations can be updated or cancelled easily
Disadvantages:
- You need to be able to access your “CRA My Business Account”
- If it is used to pay tax arrears, it only works for those with no procrastination, it won’t work if the payment deadline is approaching, as authorization to the CRA takes one whole week to process.