Make a Payment
Every corporation whose Corporation Capital Tax (CCT) liability exceeds $3,000 is required to remit four instalments in amounts equal to 25% of its estimated total tax payable for the tax year.
In determining whether instalments are required (i.e. whether the corporation's CCT liability exceeds $3,000), the calculation may be based on
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the previous year's CCT, or |
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the current year's estimated CCT |
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Please note, if the instalments are based on an estimate, and the estimated tax is less than the actual tax for the year, penalties and interest will be levied.
A corporation whose annual tax liability is less than $3,000 is not required to pay instalments, even if it is associated with a corporation liable to pay instalments.
Corporations not required to make instalments must pay the entire balance of tax owing on or before the due date of the CCT return. A cheque for the amount owing should accompany the return. Please see How to File for more information.
Instalments must be paid by the 15th day of the 3rd, 6th, 9th and 12th months following the calendar month in which the corporation's current tax year began. For example, if the corporation's fiscal year began on January 1, 2007, instalments would have to be paid by April 15, 2007, July 15, 2007,
October 15, 2007 and January 15, 2008 for its 2007 tax liability.
The final balance of tax owing after instalments must be paid by the due date of the CCT return, which is 184 days after the end of the corporation's tax year. In the above example, the final balance owing, if any, would be payable on or before July 2, 2008 when the CCT return is due.
Payments should be made by cheque, draft or money order payable to the Minister of Finance, and sent to the following address:
Ministry of Small Business and Revenue
Income Taxation Branch
PO BOX 9444 STN PROV GOVT
VICTORIA BC V8W 9W8
Non-resident corporations may pay by either:
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draft or money order in Canadian dollars drawn on a Canadian bank |
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draft or money order in U.S. dollars drawn on a worldwide bank |
Each instalment payment of tax should be accompanied by an instalment coupon or covering letter specifying:
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the corporation's name |
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the CCT account number |
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the tax year to which the payment is to be applied |
Corporations who have previously contacted us and indicated they are subject to instalments will automatically receive pre-printed coupons prior to the due date for each instalment. The instalment coupon will include an updated record of the corporation's account balance for the current tax year.
Where there is an outstanding balance of tax payable or refundable, we will send a Statement of Account either on a monthly basis or after recording a payment or other adjustment to the account. The Statement reflects the cumulative debit or credit balance, including any interest or other adjustments.
Instalment Payments in Special Situations |
First Year of Operations
A new corporation is not required to pay instalments during its first tax year. The balance of tax owing, if any, is payable on or before the due date of the annual return, 184 days after the end of its tax year. This provision does not apply to amalgamated corporations (see below).
Instalments Based on a Short Preceding Tax Year
Where a corporation estimates its current year's instalment base using its CCT liability from the previous tax year, and that year was less than 365 days, the estimated tax liability for instalment purposes must be adjusted to reflect a full year.
For example, a corporation has a tax liability of $10,000 in 2006, but the tax year was only 100 days. For 2007, the estimate based on a tax year of 365 days would be $10,000 x 365/100, or $36,500. Paid in 4 instalments, each instalment would be $9,125 for 2007.
Amalgamated Corporations
For purposes of calculating instalments, an amalgamated corporation is treated as a continuation of its predecessor corporations. Therefore, an amalgamated corporation's instalment base would be the total of taxes payable by each of its predecessors for the most recent tax year.
If the most recent tax year of any of the predecessor corporations was less than 365 days, the amount must be annualized according to the above rules for instalments based on a short preceding tax year.
Windups and Rollovers
Where a subsidiary corporation has been wound up into a Canadian parent organization under the provisions of Subsection 88(1) of the Income Tax Act (Canada) , the parent and the subsidiary must each independently determine its instalment base for CCT purposes.
In other words, in the year of the wind-up, the parent corporation is not required to assume the subsidiary's instalment base, since the commencement of the wind-up and the resulting distribution of property to the parent does not trigger a deemed year end in the subsidiary.
Similarly, where all or substantially all of the property of one corporation has been transferred to a non-arm's length corporation under Subsection 85(1) or 85(2) of the Income Tax Act (Canada), the transferee is not required to take into account the instalment base of the transferor corporation. This rule parallels the instalment provisions with respect to wind-ups.
We assess penalties and interest against corporations who fail to comply with the legislation.
The legislation provides for a penalty of 10% of the amount of unpaid tax for late-filed returns or late or deficient payments. In addition, debit interest on any overdue amounts will be levied at prescribed rates.
Where a corporation, by making instalments, overpays its tax liability for a tax year, the overpayment will earn credit interest. Please see our section on refunds for more information.
Payment of an Outstanding (overdue) Balance |
If you have an outstanding balance or you have received a Notice of Assessment and would like to pay, there are several ways you can pay your overdue Corporation Capital Tax:
- Pay in Person - Government Agents Office
- Pay in Person - Bank, Credit Union or Trust Company
- Pay by Money Order/Bank Drafts/Certified Cheque
- By Post-Dated Cheque
If you have any questions or concerns about your outstanding balance please see our Frequently Asked Questions or Contact Us.
Pay in Person - Government Agents Office
You can pay your bill in person at any Government Agent/B.C. Access Centre (opens a new window) using your bank card, personal cheque, cash or money order. Please note, credit cards are not accepted.
Please bring your Notice of Assessment, Statement of Account or legal notice with you.
Pay in Person - Bank, Credit Union or Trust Company
You can pay your outstanding bill at most banks, credit unions, trust companies or automated tellers in B.C.
You must bring your complete Notice of Assessment or Statement of Account with you as your financial institution will need this information in order to process the payment.
Please note, a fee for this service may be levied by your financial institution. These fees may vary between financial institutions.
Please be aware that smaller financial institutions may hold payments until a volume or dollar amount has been reached. Please confirm with your financial institution to ensure your payment will be processed by the due date indicated on your Notice of Assessment.
Pay by Money Order/Bank Draft/Certified Cheque
You can pay your bill by money order, bank draft, certified cheque or post-dated cheque.
Please write your account number in the memo area on the front of your cheque, money order or bank draft. You must include your original notice of assessment, Statement of Account or a copy of the legal notice with your payment.
Please make your payment payable to the Minister of Finance and mail to the following address -- please do not mail cash:
Revenue Services of British Columbia
PO BOX 9401 STN PROV GOVT
VICTORIA BC V8W 9V1
Pay by Post-Dated Cheque
A payment arrangement must be made with the Collection Analyst or Officer looking after your account prior to submitting post-dated cheques.
Please contact the number listed on your Notice of Assessment or legal notice letter, or phone 1 866 361-5050.
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