Hi there, I wanted to ask if it's acceptable to make partial payments on the tax debts as we can, instead of entering a payment plan. Is there a difference in how the General Interest Charge (GIC) is calculated if we are on a payment plan or not? What would be the benefits of choosing one option over the other?
Hi @YLVAPA
Yes, we call these 'voluntary payments' and of course you can make these payments towards your debt without being in a payment plan. However, when you make voluntary payments instead of entering into a payment plan, there's no 'formal agreement' between yourself and us to say how much you're paying and by what date. Meaning that we may still take action to recover the debt and send out letters about your debt.
Putting your debt into a payment plan would avoid any further communication and action from us about your debt, as there's a formal agreement in place. GIC will continue to accrue until your debt is paid off regardless of what option you take.
It's preferred that you enter into a payment plan to address your debt rather than paying voluntarily when you can. We've got more info on setting up a payment plan in our article that you should have a read of.
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