HST Installment Payments
GST/HST funds are collected in trust
Can I pay an installment on a current Q2 HST payable bill rather than the
I have always attached full payment owing to the quarterly return
but I wonder if there are any installment options.
My quarterly bill Q2 for HST is $9,100.
Thanks for your time.
As a business owner, when you collect GST/HST, you are doing so in trust
for the government.
The net GST/HST collected must be remitted to the government by your assigned deadline to avoid interest and penalty charges.
You can make installments on your account ... but advance installments.
As the trust amounts have increased due to HST, one option
you should consider is switching your reporting period to monthly if you meet the annual sales criteria
If not, as a second option
consider making monthly (or weekly) installments in advance of your reporting periods. This way very little, if anything, would actually be due when you submit your quarterly report.
A third option
is to open a separate savings account and deposit GST/HST collected to that account. Segregating the funds collected in trust
would reduce the temptation to use the funds to cover personal or business expenses.
When GST/HST registrants don't remit the net GST/HST collected, the CRA has the power, through federal legistation, to seize and sell assets, garnishnee your accounts or assess directors personally if you are a corporation.
But ... none of the above options help you out of your current situation.
You may want to speak with CRA.
I don't know all your details or situation but consider filing your return on time to avoid a late filing penalty
and paying as much of the $9,100 as you can. Then payoff the remaining amount in installments as quickly as you can ... get a loan if you can.
Once CRA starts ganisheeing your bank accounts, it takes years to get your life back on track. While this wouldn't happen immediately, your amounts owing are unlikely to get smaller.
Talk with your accountant or CRA to see what your options are. Don't ignore this as that won't make it get any better.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.