A comfort letter confirms that a business’s CRA program accounts are in good standing. The tax accounts relate to the following business accounts:
- Payroll Deductions (RP)
- Corporate Income Tax (RC)
- GST/HST Program Accounts
- (Different rules apply for businesses who are resident of the province of Quebec. More information can be found in this Revenu Quebec link)
A financial institution might request a comfort letter to ensure that your company does not owe the Canada Revenue Agency any outstanding payments. The letter may also be used as proof to grant a loan application.
In order to request a comfort letter, you must submit a request in writing, either by mail or by fax to the tax services office nearest to the business. Make sure to include the name of your business, your business number and the relevant CRA business accounts. If an authorized person is making the request, you must also submit a letter of authorization or a completed Form RC59, Business Consent for Offline Access.