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COVID-19 Update: Tax payment deadlines extended once again

CRA headquarters

The federal government continues to enact measures to address the economic disruption caused by the COVID-19 crisis, this time announcing yet another extension of tax payment due dates for 2019 tax returns.

Individuals, corporations and trusts will now have until September 30th, 2020, to pay outstanding current-year tax balances. The previous payment deadline was September 1st, 2020. Installment payments are also included in the extension. The tax filing due dates for individuals, corporations and trust income tax returns remain unchanged from the previous extension (see below for a full summary).

The Canada Revenue Agency has indicated that it will not charge late-filing penalties for 2019 returns as long as filings are completed by the end of September. The income tax return filing extensions also apply to forms T106 and T1135 “and any elections, forms, and schedules that must be filed with the return.”

In addition, arrears interest will be waived on existing tax debts related to individual, corporation and trust income tax returns from April 1st, 2020, to September 30th, 2020, and from April 1st, 2020, to June 30th, 2020, for Goods and Services Tax/Harmonized Sales Tax (GST/HST) returns. Penalties and interest already assessed on tax accounts prior to this period will not be waived.

The CRA continues to encourage Canadians to file their taxes by the assigned filing deadlines to ensure they receive the benefits and credit payments to which they’re eligible. Income tax and benefit-processing delays are creating challenges for some individuals and organizations, underscoring the need to file returns on time.

The following is a revised summary of 2019 tax year filing deadlines for individuals and business owners:

Individuals

Filing deadline: June 1st, 2020

Payment deadline: September 30th, 2020

Self-employed individuals

Filing deadline: June 15th, 2020

Payment deadline: September 30th, 2020 (The extension “… applies to the June 15th and September 15th, 2020, installment payments for those who have to pay by installments.”)

Corporations with a filing deadline between March 18th and before May 31st 2020

Filing deadline: June 1st, 2020

Payment deadline: September 30th, 2020 (“Applies to balances and installments due on or after March 18th and before September 30th, 2020. Penalties and interest will not be applied if returns are filed and payments are made by September 30th, 2020.”)

Corporations with a filing deadline on May 31st, 2020, or in June, July or August, 2020

Filing deadline: September 1st, 2020

Payment deadline: September 30th, 2020 (“Applies to balances and installments due on or after March 18th and before September 30th, 2020. Penalties and interest will not be applied if returns are filed and payments are made by September 30th, 2020.”)

Trusts

Filing date for current tax year (including the associated T3 information return):

  • May 1st, 2020 (“Applies to trusts with a tax year end date of December 31st, 2019”)
  • June 1st, 2020 (“Applies to trusts that would otherwise have a filing due date after March 30th and before May 31st, 2020.”)
  • September 1st, 2020 (“Applies to trusts that would otherwise have a filing due date on May 31st, or in June, July, or August 2020.”)

Payment date for current tax year: September 30th, 2020 (“Applies to income tax balances and installments due on or after March 18th and before September 30th, 2020. Penalties and interest will not be applied if returns are filed and payments are made by September 30th, 2020.”)

For information on tax filing deadlines or COVID-19 relief programs such as the Canada Emergency Business Account, contact a member of our team now.

Armando Iannuzzi, Co-Managing Partner

Armando Iannuzzi
Armando Iannuzzi

905-946-1300, x. 239
aiannuzzi@krp.ca