The Canada Revenue Agency (CRA) is once again extending the payment deadline for current year individual, corporate, and trust income tax returns, due to the COVID-19 pandemic.
The deadline has been extended from Sept. 1 to Sept. 30, 2020 and includes tax instalment payments.
The CRA won’t charge you penalties and interest as long as you pay by the extended deadline of Sept. 30. This relief includes the late-filing penalty provided you file the return by Sept. 30.
“The CRA understands 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 said in a press release.
CRA waives interest on existing tax debt
They’re also applying relief to interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1 to Sept. 30, 2020 and for GST/HST returns from April 1 to June 30, 2020.
While this measure for existing tax debts doesn’t cancel penalties and interest already assessed on a taxpayer’s account prior to this period, any existing tax debt won’t continue to grow through interest charges during this time.
Relief from late-filing penalty
The CRA says the previously extended filing due dates for individual, corporate, and trust income tax returns remain unchanged.
“However, recognizing the difficult circumstances faced by Canadians, the CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late provided that it is filed by September 30, 2020,” the CRA says.
Even with this relief measure, the agency still recommends Canadians file their tax returns as soon as possible.
That way individuals receiving credits and benefits, such as the GST credit or the Canada Child Benefit, will ensure their benefits are calculated properly.
The CRA calculates benefits or credits for the July to September 2020 payments based on information collected from your 2018 tax return.
If your 2019 individual tax return isn’t received and accessed by early September, your estimated benefits and/or credits will stop in October 2020. The CRA warns you may also have to pay back the amounts you were issued as of July.
If you’d like to learn more about this or other COVID-19 programs for Canadian businesses, please call us at 1-800-265-1002 or email [email protected] Unlimited consultation related to tax matters is a key benefit of FBC Membership. You can also book an appointment.
Visit our COVID-19 Resource Centre for the latest information, advice and insights for small business owners.