Uncertainty about the current situation is causing anxiety for employees and employers alike. Federal, provincial, and municipal governments are helping with various support programs.
This information is intended for informational purposes only. Businesses and individuals should consult their accountant, financial advisor, or government authorities before applying or making decisions about how they should use this information.
Deferred Filing of Federal Taxes & Collection of Tax Balances
- Extends the federal tax filing deadline to June 1, 2020
- Canada Revenue Agency (CRA) will allow all taxpayers to defer until September 1, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act
- No interest or late payment penalties during this period
- Exception: Any taxpayers with taxes already due (for example, three months after a November 30 year-end) will not qualify for a deferral. Instalments that should have been paid up until today are also not covered by the deferral relief
- For self-employed individuals or those who have spouses or common-law partners that are self-employed, the deadline to pay taxes has also been deferred to August 31, 2020; however, income tax and benefit returns still needs to be filed by June 15, 2020
- It may be advisable for individuals to prepare their 2019 taxes well ahead of the June 1 deadline if they are in a refund position, so they will receive their refund earlier.
The communication provided is intended to be for informational purposes only and we strongly encourage businesses and individuals to consult a tax advisor to ensure their situation is assessed appropriately.