Reference

Requirement to Pay

Requirement to Pay

Plain meaning

A CRA collection tool requiring a third party to pay amounts owed to a taxpayer directly to the Crown toward a tax debt.

Also called

third-party demand RTP

Key points

  • The CRA may issue a requirement to pay to a person who owes or will owe money to the tax debtor.
  • Common targets include employers, banks, customers, tenants, and other payors.
  • The third party must generally comply or risk becoming liable for amounts that should have been paid to the Crown.
  • A requirement to pay is different from an ordinary request for information because it redirects payment.

Why it comes up

Requirements to pay can affect wages, bank accounts, receivables, tenants, customers, and business cash flow.

News signals

CRA collections tax debt third-party payment

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