COVID-19 Tax Filing and Payment Extensions and Other Filing Relief Measures
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COVID-19 TAX UPDATE
Tax Filing and Payment Extensions and Other Filing Relief Measures in Response to the COVID-19 Pandemic
(Released March 31, 2020)
The Canadian government has announced several measures to help taxpayers during these challenging times by providing extensions for filing and payment of taxes for business, Charities/NPO, individuals, partnerships, and trusts. To help you navigate the many provisions announced, we are providing an easy to follow summary of the government’s announcements through March 30, 2020. The summary is separated by type of return/filing so you can focus on those relevant to you.
| Return Type/Filing | Filing Deadline Measures | Tax Payment/Remittance Measures |
| T1 Personal Income Tax Returns | ||
| · Individuals other than self-employed | · Deadline deferred to June 1, 2020 from April 30, 2020. | · The Deadline to pay a balance owing under Part I of the Income Tax Act extended from April 30. 2020 to September 1, 2020.
· Penalties and interest will not be assessed if the amount due is paid by September 1, 2020.
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| · Self-employed individuals and their spouse/ common-law partner | · None – deadline remains June 15, 2020. | · The Deadline to pay a balance owing under Part I of the Income Tax Act extended from April 30. 2020 to September 1, 2020.
· Penalties and interest will not be assessed if the amount due is paid by September 1, 2020. · CPP has its own act and is not governed by Part I of the Income Tax Act. Therefore, it is unclear whether CPP due on self-employment earnings will be granted an extension to September 1, 2020.
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| T2 Corporate Income Tax Returns | · None – remains 6 months after the corporation’s tax year-end.
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· Corporate tax and instalments under Part I[i] of the Income Tax Act owing or due after March 18. 2020 and before September 1, 2020 is extended to September 1, 2020.
· Penalties and interest will not be assessed if the amount due is paid by September 1, 2020.
|
| T3 Trust and Estate Returns | · Deadline extended to May 1, 2020 from March 30, 2020 for trusts and estates with December 31, 2019 tax year ends.
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· Tax and instalments under Part I of the Income Tax Act owing or due before September 1, 2020 is extended to September 1, 2020.
· Penalties and interest will not be assessed if the amount due is paid by September 1, 2020. · CRA will also review penalty and interest relief for upcoming trust tax liabilities that are not covered by the above measure on a case-by-case basis. |
| T3010 Charity Returns | · Filing deadline extended to December 31, 2020 for any charity return due between March 18, 2020 and December 31, 2020.
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· N/A – charities do not pay Part I income tax. |
| T5013 Partnership Returns | · For partnerships with a March 31, 2020 filing deadline, it has been extended to May 1, 2020.
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· N/A – partnerships do not pay Part I income tax. |
| NR4 Information Return for Amounts Credited or Paid to Non-residents and Part XIII Tax
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· Filing deadline extended from March 31, 2020 to May 1, 2020. | · None – Part XIII remittances remain due by the 15th day of the month following the month an amount was credited or paid to a non-resident. |
| Administrative Tax Actions and Filings under the Income Tax Act[ii]
|
· If due after March 18, 2020, the deadline for actions and filings covered is extended to June 1, 2020. | · None unless specified otherwise for a particular tax filing (i.e.: payment extension for individuals). |
| GST/HST Returns | · None | · Remittance due date extended to June 30, 2020 for:
Ø Amounts collected by monthly filers for their February, March and April 2020 reporting periods. Ø Amounts collected by quarterly filers for the January 1 to March 31, 2020 reporting period. Ø Amounts collected for the previous fiscal year by annual filers and instalments for the current fiscal otherwise due in March, April or May 2020.
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| Objections | · Deadline for any notices of objection due on or after March 18, 202 is extended to June 30, 2020. | · N/A |
[i] Extension does not cover other Parts of the Income Tax Act such as Part IV dividend tax and Part XIII tax on amounts credited or paid to non-residents.
[ii] Includes filings and actions such as T1135 Foreign Income Verification Statement, T1134 Information Return for Foreign Affiliates and Controlled Foreign Affiliates, tax elections, designations and responses to information requests from the CRA.
[i] Extension does not cover other Parts of the Income Tax Act such as Part IV dividend tax and Part XIII tax on amounts credited or paid to non-residents.
[ii] Includes filings and actions such as T1135 Foreign Income Verification Statement, T1134 Information Return for Foreign Affiliates and Controlled Foreign Affiliates, tax elections, designations and responses to information requests from the CRA.