Discounter information for individuals
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Make sure to keep your address up-to-date with the Canada Revenue Agency (CRA) and your tax preparer (if you use one).
Some tax preparers offer refund discounting services. A discounter will calculate your expected tax refund and give you one up-front payment before filing your return.
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What to expect from a discounter
Preparing your tax return
A discounter will prepare your tax return and calculate your tax refund.
They must give you a completed and signed Form RC71, Statement of Discounting Transaction.
If you ask for them, the discounter must also give you a copy of your tax return and any related information slip(s).
Getting your refund
Review the amounts on Form RC71 before you sign it.
The discounter will give you the discounted tax refund, which includes their fees. The fee a discounter can charge is the difference between your calculated refund and the refund amount paid to you.
Discounter fees
Discounters must pay you at least 85 cents for each dollar of the first $300 of an estimated refund, plus 95 cents for each remaining dollar.
Examples of discounter fees based on refund amounts Refund calculated by the discounter Fee deducted from your refund (excluding taxes) Discounted tax refund paid to you by the discounter $250.00 $37.50 $212.50 $500.00 $55.00 $445.00 $750.00 $67.50 $682.50 $1,000.00 $80.00 $920.00 $1,500.00 $105.00 $1,395.00 Completing the discounting transaction
The discounter will file your tax return.
After the Canada Revenue Agency (CRA) has processed your tax return, the discounter will receive your notice of assessment (NOA) or notice of reassessment (NOR), as well as any refund. The discounter must immediately send you:
- Form RC72, Notice of the Actual Amount of the Refund of Tax
- The NOA or NOR received
If the refund amount is more than the calculated amount
If the refund amount is $10 or more than the refund the discounter calculated, they must pay you the full amount of any difference, excluding any refund interest.
The CRA conducts compliance programs under the Tax Rebate Discounting Act to make sure:
- Your rights and interests are protected when using tax discounting services
- Tax discounters meet their responsibilities under the law when providing tax discounting services
Other available filing options
There are other filing options instead of using a discounter.
You can file your own tax return using:
You can have someone else file your tax return, such as: