July 30, 2020
The Canadian government announced on Monday (July 27) that it is further extending the payment deadline from September 1, 2020 to September 30, 2020, for:
- 2019 individual tax returns
- 2019 or 2020 corporation tax returns
- trust returns
- 2020 instalment payments
Has Anything Changed with Official FILING Due Dates? No.
Let’s be clear: there are two distinct dates that should not be confused:
- FILING due date, the date by which your return needs to be filed;
- PAYMENT due date, the date by which payment is required.
However, the PAYMENT due dates have been further extended (from September 1 to September 30, 2020).
So, for example, if you have received a Notice of Assessment from Canada Revenue Agency with a PAYMENT deadline of April 30 or September 1, you may ignore these dates. The PAYMENT date is now further extended to September 30, 2020.
Has Anything Changed with Late-filing Penalties and Interest? Yes.
The previously-extended FILING due dates for individual, corporation, and trust income tax returns remain unchanged 1. However, because of the pandemic, CRA will waive late-filing penalties where a 2019 individual return or a 2019 or 2020 corporate, or trust return is filed after the DUE date as long as it is filed by September 30, 2020 2.
The CRA will also waive arrears interest on existing tax debts related to individual, corporation, and trust income tax returns from April 1, 2020, to September 30, 2020, and from April 1, 2020, to June 30, 2020, for Goods and Services Tax/Harmonized Sales Tax (GST/HST) returns. While this measure for existing tax debts does not cancel penalties and interest already assessed on a taxpayer’s account prior to this period, it will ensure that a taxpayer’s existing tax debt will not grow through interest charges during this difficult time.
- If you are a Tucker Professional Corporation client and have any questions about payment or filing timelines, feel free to reach out.
- For healthcare-focused financial professionals, forward this Advisory to colleagues, clients and other interested parties needing to know of this extension.
- For more details on this extension, please review the government’s news release.
- Have you filed your taxes yet? If you don’t have an accountant or have additional questions about this, please feel free to reach out to Jonathan Tucker at (905) 601-5659 x101 or by email at firstname.lastname@example.org.
1 The extensions to the filing due date for income tax returns also apply to certain forms including T106 and T1135, and any elections, forms, and schedules that must be filed with these returns.
2 Penalties and interest relief will be considered on a case-by-case basis for income tax balances that are not referred to herein.