Receiving a call or letter from the Canada Revenue Agency (CRA) saying you owe money can be stressful, especially when your business is already managing tight cash flow. The good news is that a balance owing does not have to turn into a crisis. In a June 18, 2026 tax tip, the CRA reminded Canadians that if they cannot pay in full or on time, options may be available, including its online Manage balance service.
The CRA also stresses that reviewing your options and acting early can help you avoid additional interest, costly penalties or other collection actions. Here is what Canadian small-business owners, sole proprietors and self-employed individuals should know.
What Is the CRA Manage Balance Service?
Manage balance is a self-service tool in the CRA’s My Account. According to the CRA, it lets eligible taxpayers resolve their debt online without having to speak to a collections officer.
Who can use it?
The CRA states that the service may be available if you have a personal income tax or COVID-19 benefit debt of $1,000 or more. This is especially relevant for sole proprietors and self-employed individuals, whose business income is reported on their personal income tax return.
If your debt does not meet these criteria, or you are otherwise unable to use the service, the CRA encourages you to contact it directly to discuss your options.
What can you do through Manage balance?
Through the service, you can:
- Make a full payment of your balance
- Make a partial payment
- Schedule a series of payments
- Contact a collections officer
- Request a callback
Recent improvements
The CRA has made two enhancements to the Manage balance experience in My Account:
- You can now see the contact information of the agent or officer assigned to your account.
- Balances that already have a payment arrangement are no longer shown.
The service launched on October 22, 2025. As of May 15, 2026, the CRA attributes $1.1 billion in full payments or payment arrangements to Manage balance, and reports that more than 5.95 million taxpayers with a debt of $1,000 or more were presented with the service.
A Practical Example
Consider a self-employed graphic designer who owes $4,500 on her personal return because she did not set aside enough for tax during the year. Since this is a personal income tax debt over $1,000, she may be able to sign in to My Account, make a partial payment now and schedule a series of payments for the remainder. If her situation is more complicated, she can request a callback from a collections officer through the same tool.
What If You Can’t Use the Online Service?
Not every balance will fit the Manage balance criteria. If you can’t use the service, or you are unable to pay your tax or other government debt, the CRA asks taxpayers to contact the CRA about your debt. The CRA says it can work with you to find a solution that suits your financial situation.
You can learn more about the available payment options on the CRA’s Debt collection at the CRA page. The CRA also offers a tool to calculate your ability to pay, which can help you prepare before discussing a payment arrangement.
Taxpayer relief may also be an option
In certain situations, the CRA may grant relief of penalties and interest. Review the CRA’s Taxpayer relief provisions or speak with a professional before submitting a request.
What Happens If You Ignore a Tax Debt?
The CRA notes that if you don’t pay or call to discuss your situation, it can take steps to recover the amount you owe. For example:
- Your benefit and credit payments, or tax refunds, could be withheld and applied to your outstanding debt.
- Legal action can be initiated to collect the amount owed.
Other Government Debts the CRA Collects
Business owners should also be aware that the CRA collects certain debts on behalf of other government programs, including:
- Employment and Social Development Canada (ESDC): overpayments of Employment Insurance, Canada Pension Plan, Old Age Security, other overpayments and overdue student loans.
- Canada Border Services Agency (CBSA): customs debts such as duties, fees, charges, penalties and interest.
- Defaulted Canada Emergency Business Account (CEBA) loans: the CRA provides collection services for defaulted CEBA loans on behalf of the Government of Canada.
Practical Steps for Small-Business Owners
- Act quickly: respond to CRA notices promptly rather than waiting.
- Verify the contact: before sharing information or paying, confirm the call or letter is legitimate using the CRA’s Verify it’s the CRA calling guidance.
- Review your cash flow: determine what you can realistically pay now and over the coming months.
- Use the right channel: try Manage balance if you qualify; otherwise, contact the CRA directly.
- Plan ahead: setting aside funds for tax throughout the year can help reduce the chance of a large balance next time.
How UMA Accounting Can Help
A tax debt is easier to manage when you understand your options and act early. UMA Accounting can review your CRA balance, help you prepare a realistic payment plan, assess whether taxpayer relief may be worth exploring, and help you build better tax planning into your bookkeeping. Contact UMA Accounting at info@uma-accounting.ca or +1 (403) 438-9111 to discuss your situation with our team.
Source: Canada Revenue Agency, Can’t pay your tax debt right away? We have options to help you – including the Manage balance service (June 18, 2026).
Disclaimer: This article is provided for general informational purposes only and does not constitute personalized accounting, tax, financial or legal advice. Tax laws and government guidance may change, and their application depends on individual circumstances. Review current guidance from the relevant Canadian government authority or consult a qualified professional before making tax or financial decisions.
