Tax Tip:  Direct Deposit

CRA has indicated that it is attempting to minimize the amount of cheques issued and, instead, encourages people to receive payments via direct deposit.

CRA stated that when a taxpayer registers for direct deposit, the taxpayer is not authorizing CRA to withdraw money from their bank account. CRA can only withdraw money from a taxpayer’s account when a garnishment (legal procedure) is in place.

Registering to receive payments via direct deposit can be done by mail (by filling out the Direct Deposit Enrolment Form), online (by using My Account), or by phone (1-800-959-8281).

Businesses can sign up for direct deposit by filling out Form RC366, Direct Deposit Request for Businesses, and then mailing it to a Tax Centre.

Action Item: Consider enrolling for direct deposit to receive Government payments, including personal and corporate tax refunds.