Making instalment payments - Functional currency

There are three options you can use to calculate the least amount of tax you have to pay in instalments for the current tax year, based on the:

1. current year;
2. previous year (first instalment base); or
3. a combination of the previous year and the year before the previous year (second instalment base).

For all three options, you base the calculation on the total tax you have to pay under Parts I, VI, VI.1, and XIII.1 of the Income Tax Act, and the tax you have to pay to provinces and territories (other than Quebec and Alberta). For details about Part XII.1 and Part XII.3 tax, see Paying instalments.

We will assess your return using the option that results in the least total amount payable by instalments. We will charge interest if you use option 1 and your estimated tax was lower than the year's actual tax and the tax calculated using option 2 or 3.

You must make your instalment payments in Canadian currency.