What's Happening
Business tax filing and payments through financial institutions are becoming more expensive and will slow down the progress made on Open Banking in Canada.
RBC and Scotiabank are starting to charge business owners a $25 setup fee to register for the tax file & pay service, along with a $2 per transaction fee and a minimum $2 monthly fee, which is waived if at least one tax payment is made that month. TD Bank and CIBC currently charge a $2 transaction fee but no monthly or setup fees. Thankfully, BMO doesn’t charge a fee for tax payments right now.
Reactions
These charges hinder the progress made on Open Banking, which is a fully inclusive financial framework that is being rolled out in Canada. To make matters worse, the entire "tax file & pay" system is controlled by a single company, Dye & Durham, creating a monopoly that will ultimately hurt consumers and businesses financially.
“This is further confirmation that banks are looking to lure small business customers towards more expensive payment options, rather than focusing on providing convenience or lower fees,” said Dan Kelly, president of the Canadian Federation of Independent Business.
Free Alternatives
Thankfully, we found some free alternatives to file and pay taxes.
Free Online GST, HST, QST Filings
Free Online Income Tax Filings
Wealthsimple Tax (Self-Employed only. Not for Corporations)
Free Online Tax Payments
