Last updated May 25, 2020. We will update blog posts when more information is released.
The federal government announced they are extending tax filing and payment deadlines for most taxpayers. The measure is part of Canada's COVID-19 Economic Response Plan. It’s intended to help Canadians meet short-term liquidity needs during the COVID-19 crisis.
FBC has reviewed the filing and payment deadline extensions and prepared a brief summary.
WHEN ARE INDIVIDUAL TAX RETURNS DUE?
Individual tax returns are typically due April 30th. Now Canadians have until June 1, 2020 to submit their 2019 personal tax return.
If you receive benefits under the GST credit or the Canada Child Benefit, don’t delay the filing of your return. That way you ensure your entitlements for the 2020-21 benefit year are property determined.
Sole-proprietorships and self-employed individuals and their spouses have until June 15, 2020 to file their individual tax returns. That deadline hasn’t changed.
Other deadline extensions:
- The deadlines for trust returns that would otherwise be due in June, July or August, have been extended to September 1, 2020
- Registered charities whose returns are due between March 18, 2020 and December 31, 2020, have until December 31, 2020 to file their return
WHEN ARE CORPORATE TAX RETURNS DUE?
The CRA will allow all businesses to defer filing their T2 corporation income tax returns otherwise due in June, July or August, to September 1, 2020.
As previously announced, any income tax balance due on or after March 18 and before September 1 will also be due by September 1, 2020.
If your corporation has a year-end of September 18th to December 30th, you now have until September 1, 2020 to file.
WHAT IS THE PAYMENT DEADLINE?
The payment deadline for most taxpayers (individuals, trusts and corporations) is extended to September 1, 2020 (for all tax payments due on or after March 18 and before September 1, 2020). This measure applies to income tax balances and instalments.
The deferred payments will not be subject to interest or penalties during this period. If a balance remains unpaid on September 1, 2020, the penalty will apply to non-payment.
WHAT ARE THE EXCEPTIONS TO THE ANNOUNCEMENT?
This filing deferral announcement does not apply to:
- Corporate taxes under Part IV, Part VI.1, and Part XIII of the Income Tax Act and other tax payments under the Act
- Payroll deductions (including related activities, other than those related to the reduction of remittances for the new temporary wage subsidy)
- Filing related to the Scientific Research & Experimental Development Tax Incentive Program
WHAT ABOUT GST/HST AND IMPORT DUTIES?
Prime minister Justin Trudeau announced that the remittances of GST/HST, as well as import duties, would be deferred until June 30, 2020.
More specifically, the following remittances will be deferred:
- GST/HST monthly filers’ remittances of amounts collected for the February, March, and April 2020 reporting periods
- GST/HST quarterly filers’ remittances of amounts collected for the 1 January 2020 through 31 March 2020 reporting period
- GST/HST annual filers’ remittances of amounts collected and owing for their previous fiscal year, as well as instalments in respect of their current fiscal year, that are due in March, April or May 2020
- Payments owing for customs duties and GST on imports for March, April, and May 2020 statements of account