The Canada Revenue Agency (CRA) announced yesterday (July 27 ,2020) that it is extending the due dates for some payments and some returns (previously extended to September 1, 2020) to September 30, 2020.
The CRA also announced that it will also waive certain interest charges.
CAUTION: To benefit from these extensions and avoid late filing and payment penalties, ALL income tax balances and instalments otherwise due on or after March 18th and before September 30, 2020 must be paid by September 30, 2020;
NOTES: Payments for other GST/HST, payroll and cross-border withholding taxes have NOT been extended. We are waiting to see if this extension also applies to tax election forms and other returns (such as Form T106 and T1134 and T1135 foreign reporting forms).
INCOME TAX FILING DEADLINES
For corporations with year ends ending from November 30th 2019 to March 31st 2020, the T2 return filing deadline has been extended to September 30th 2020
For corporations with year ends ending on April 1st 2020 or later, the normal six-month filing deadline still applies.
For trusts that have a tax year end of March 2nd 2020 to July 2nd 2020, the T3 return filing deadline has been extended to September 30th 2020.
NOTE: For trusts with a year end on July 3rd 2020 or later, the normal 90 day filing deadline still applies.
For individuals, the 2019 T1 personal tax return filing deadline has been extended to September 30th 2020.
The CRA is still encouraging individuals to file as early as possible; particularly those receiving income tested benefits such as the Canada Child Benefit. The CRA cautions that if the CRA does not receive an individual’s T1 return by early September then benefits and credits will stop in October 2020 and the individual may have to repay some 2020 benefits.
INCOME TAX PAYMENT DEADLINES
The deadline for payment of income taxes on all of the above extended returns has been extended to September 30th 2020. Taxpayers will not be charged late filing penalties so long as they file these returns and pay the taxes owing by September 30th 2020.
The deadline for remittance of 2020 income tax installments due during the period from March 18th 2020 to September 30 2020 has also been extended to September 30, 2020.
WAIVER OF INTEREST
The CRA is also waiving interest on an individual’s, corporation’s and trusts’ income tax debts for 6 months from April 1st to September 30th 2020 and on GST/HST returns for 3 months from April 1st to June 30th 2020.
NOTE: This interest waiver does NOT apply to any existing tax and GST/HST debts that have already been assessed on a taxpayer’s account prior to these periods.
See the Government’s Announcement below:
If you have any questions about these measures, please contact your trusted DMCL Business and Tax Advisor.