Payment Arrangement

A payment arrangement is an agreement under which the Canada Revenue Agency accepts payment of a tax debt by scheduled instalments rather than in full immediately. It does not reduce the debt — interest continues to compound on the unpaid balance for the term — and it does not release the CRA's collection powers, which revive if a payment is missed or a subsequent filing obligation is not met. The CRA generally expects the shortest term the taxpayer can manage and, for larger arrangements, a financial disclosure to support the proposed schedule.