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What are your payment options?

You have three instalment payment options:

  • no-calculation option (this option is best for you if your income, deductions, and credits stay about the same from year to year);

  • prior-year option (this option is best for you if your 2007 income, deductions, and credits will be similar to your 2006 amount but significantly different from those in 2005); or

  • current-year option (this option is best for you if your 2007 income, deductions, and credits will be significantly different from those in 2005 and 2006).

If you choose the best instalment payment option for your situation, you will not overpay your tax during the year or have a large amount of tax to pay when you file your return. You do not have to tell us which option you choose. Instalment reminders that we send to you are always based on the no-calculation option.

Note
If you have to pay by instalments and you have to pay Canada Pension Plan (CPP) contributions on self-employment and other earnings (see
line 421), your instalment payments are based on your net tax owing and your CPP contributions payable.

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Date Modified: 2007-01-02

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