On July 27, 2020, the Canada Revenue Agency (“CRA”) announced their intention to extend the payment deadline and apply relief to interest on existing debt, understanding that individuals and businesses might be dealing with difficulties in meeting their financial obligations, including paying tax debts they may have incurred prior to the crisis.
- The CRA is extending payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from September 1, 2020, to September 30, 2020. This effectively also defers the September 15 personal income tax instalment to September 30.
- Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the late-filing penalty as long as the return is filed by September 30, 2020.
- The CRA is waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020.
- The CRA is also waiving interest on existing tax debts from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns.
- The CRA has clarified that it will not cancel penalties and interest on a taxpayer’s account that has already been assessed prior to the above period; however, interest will not continue to accrue on existing tax debt during these periods.
How can Crowe Soberman support you?In these uncertain times, it is essential to remain agile and proactive as the COVID-19 situation unfolds. Having timely access to financial experts, insights and news as quickly as possible is critical—and that’s where we can help.
We have established a dedicated COVID-19 Resource Hub, highlighting areas of business operations that will likely be impacted by coronavirus. Whether you need to discuss your current financial situation and learn what options are available to you, or you want to be guided through the appropriate cash flow management strategies for your business, our team of experts are ready to help you at every step of the way. Please do not hesitate to reach out to your Crowe Soberman professionals for support during these challenging times.
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This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.