In order to avoid paying interest, and if you can afford to, you should pay the amount you owe to the Canada Revenue Agency upfront, even if you intend to object to the reassessment. Interest is charged at the prescribed rate, compounded daily, starting from the balance-due date. In simple terms, interest can accumulate pretty fast. If the CRA vacates the reassessment at the objection stage, or you win the appeal in Court, the amount that you paid upfront will be returned to you, with interest.

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Last updated: November 3, 2018