Payment Plans in Manitoba
Reviewed by the Commoner Law Editorial Team. Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
If you owe money to the CRA and cannot pay the full amount right away, you can set up a payment arrangement under Section 220(3.1) of the Income Tax Act.
A payment plan lets you pay your tax debt in regular instalments over time. However, interest continues to accumulate on your balance. The CRA charges a prescribed interest rate (updated quarterly) on overdue amounts, compounded daily.
You can set up a payment arrangement online through My Account or by calling the TeleArrangement line at 1-866-256-1147. Many plans can be approved automatically if they meet CRA guidelines.
You must keep filing future tax returns on time, even while you are on a payment plan. Missing a filing deadline can cause the CRA to cancel your arrangement.
When does it apply?
This applies to any individual or business that owes money to the CRA.
- It covers income tax, GST/HST, payroll deductions, and benefit repayments.
- You can request a plan whether you owe a few hundred dollars or tens of thousands.
What to Do If You Owe Taxes to the CRA and Can't Pay in Full
- File your tax return on time, even if you cannot pay — filing late adds extra penalties.
- Pay as much as possible upfront to reduce the interest that builds up.
- Calculate an affordable monthly amount based on your income and expenses.
- Set up pre-authorized debit (PAD) through My Account for automatic payments.
- Make your first payment on schedule — missing the first payment can cancel the arrangement.
What should you NOT do?
- Don't ignore collection letters — the CRA can garnish your wages, freeze your bank accounts, and seize your assets.
- Don't miss a payment without calling CRA first — contact them before the due date to renegotiate.
- Don't assume a payment plan stops interest — interest at the CRA's prescribed rate keeps growing on the unpaid balance every day.
- Don't forget that CRA can offset benefits against your debt — your GST/HST credit or CCB payments may be applied to what you owe.
How Manitoba differs from federal law
If you cannot pay your federal tax debt in full, the CRA can arrange a payment plan. Manitoba also has its own processes for provincial tax arrears.
- The CRA will work with you to set up a payment arrangement where you pay your balance over time. Interest continues to accrue on the unpaid balance at the CRA's prescribed rate.
- To set up a payment plan, call the CRA collections line at 1-888-863-8662 or use My Account on the CRA website. You will need to provide information about your income, expenses, and assets.
- The CRA expects you to pay as much as you can, as quickly as you can. Arrangements are based on your ability to pay.
- If you do not make payments as agreed, the CRA can take enforcement action: garnishing wages, freezing bank accounts, or placing liens on property.
- For Manitoba provincial taxes (RST arrears, corporate tax), contact Manitoba Finance to discuss payment arrangements. Provincial enforcement powers are set out in The Tax Administration and Miscellaneous Taxes Act.
Additional Steps in Manitoba
Contact the CRA early — before enforcement action begins — at 1-888-863-8662. Have your income and expense details ready. For Manitoba provincial tax arrears, call Manitoba Finance — Taxation Division at 204-945-5603 or 1-800-782-0318. If you cannot reach an agreement with the CRA, consider applying for taxpayer relief (see Taxpayer Relief section).
Relevant Law: Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), ss. 222–225; The Tax Administration and Miscellaneous Taxes Act, CCSM c. T2
Common Questions
When does payment plans apply?
This applies to any individual or business that owes money to the CRA.It covers income tax, GST/HST, payroll deductions, and benefit repayments.You can request a plan whether you owe a few hundred dollars or tens of thousands.
What should I do if I owe money to the CRA in Canada but can't afford to pay it all at once?
File your tax return on time, even if you cannot pay — filing late adds extra penalties.Pay as much as possible upfront to reduce the interest that builds up.Calculate an affordable monthly amount based on your income and expenses.Set up pre-authorized debit (PAD) through My Account for automatic payments.Make your first payment on schedule — missing the first payment can cancel the arrangement.
What mistakes should I avoid with payment plans?
Don't ignore collection letters — the CRA can garnish your wages, freeze your bank accounts, and seize your assets.Don't miss a payment without calling CRA first — contact them before the due date to renegotiate.Don't assume a payment plan stops interest — interest at the CRA's prescribed rate keeps growing on the unpaid balance every day.Don't forget that CRA can offset benefits against your debt — your GST/HST credit or CCB payments may be applied to what you owe.
Payment Plans in other states
Same topic, different jurisdiction. Pick the one that applies to you.