The Canadian Government has announced a number of automatic extensions to filing and payment deadlines for both individuals and businesses in Canada in response to the COVID-19 pandemic. These are outlined here.
Tax Filing For Individuals
Tax season was officially launched on 24 February 2020, for individual filers. However, the Canadian Government subsequently adopted the COVID-19 Emergency Response Act, which gives individuals until 1 June 2020, to file their individual income tax return, rather than the standard deadline of 30 April 2020.
This legislation also allows individuals to defer payment of income tax balances, and the 15 June 2020, instalment payment for those who have to pay by instalments, to 1 September 2020. No interest or penalties will apply for this period.
Reliefs for Businesses and the Self-Employed
Further, the Government has allowed businesses, including self-employed individuals, to defer all goods and services tax/harmonised sales tax (GST/HST) payments until June. They will also be able to defer customs duties owed for imports.
The GST/HST deferrals will generally apply to remittances that became due in March, April, and May. The Government said that this measure is the equivalent of providing up to $30bn(CAD) in interest-free loans to businesses.
Businesses are allowed to defer, until 1 September 2020, the payment of any income tax amounts that become owing on or after 18 March and before September 2020. This relief applies to tax balances due, as well as instalments due on 15 June, under Part I of the Income Tax Act. Interest and penalties will be waived for this period.
Corporate tax returns will be due by 1 June 2020, for companies that would otherwise have had a due date falling between 18 March and before 1 June 2020.
Self-employed individuals have until the regular deadline of 15 June 2020, to file their return. They may pay the tax due for the 2019 tax year by the extended date of 1 September 2020, rather than in April, including any instalments that would normally due on 15 June 2020.
Tax Filing and Payment Changes for Trusts
Trusts with a tax year-end date falling on 31 December 2019, may now file their return and the associated T3 information return by the extended date of 1 May 2020. Those trusts that would otherwise have had a filing due date falling in April or May may file by the extended date of 1 June 2020.
Payments are due by 1 September 2020, for balances and instalments that would otherwise be due before 1 September 2020.
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Canada has also extended the deadlines for a number of information returns. The 2019 NR4 information return filing deadline, for Part XIII non-resident tax, is due now on 1 May 2020.
Canada has also pushed forward the filing deadlines for the following information returns to 1 May 2020: the 2019 T5013 Partnership Information Return, and the 2019 NR4, Statement of Amounts Paid or Credited to Non-Residents of Canada.
Other information returns should be filed by the extended date of 1 June 2020, for returns falling due in the period 18 March 2020, to June 2020.