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By Chris Brown

Relief

CRA extends tax payment deadline

Jul 27, 2020 | 12:24 PM

OTTAWA – The Canada Revenue Agency is extending the payment deadline and offering interest relief on outstanding tax debts for 30 days amid the COVID-19 pandemic.

The payment deadline for 2019 individual, corporate and trust income tax returns, including instalment payments, is being moved from Sept. 1 to Sept. 30, 2020. Additionally, penalties and interest will not be charged if payments are made by the extended Sept. 30 due date. This includes the late-filing penalty.

The CRA announced today it is also waiving interest on existing tax debts related to individual, corporate and trust income tax returns from April 1 to Sept. 30, 2020 and from April 1 to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns. While this measure for existing tax debts does not cancel penalties and interest already assessed on a taxpayer’s account prior to this period, it ensures that a taxpayer’s existing tax debt does not continue to grow through interest charges during this difficult time. This measure provides immediate relief to impacted taxpayers.

The CRA encourages everyone to file their individual, corporate and trust returns as soon as possible, even though payment deadlines are being extended. This is particularly important for individuals receiving credits and benefits, such as the Canada Child Benefit.

To ensure Canadians continue to receive their benefits and credits during the COVID-19 pandemic, the CRA temporarily suspended interruptions for those who were unable to file their income tax and benefit return by the June 1 deadline. Currently, if a 2019 individual tax return has not been assessed, the CRA is calculating benefits and/or credits for the July to September 2020 payments based on information from 2018 tax returns. However, if 2019 individual tax returns are not received and assessed by early September 2020, estimated benefits and/or credits will stop in October 2020 and individuals may have to repay the amounts that were issued as of July 2020. The CRA has helpful information and a step-by-step guide to help Canadians complete their taxes. The CRA tax processing system is fully operational and returns are being processed quickly to support Canadians in getting their refunds and ensuring continuity of their benefits.

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Highlights from previously announced fiscal measures for COVID-19:

• Extensions to tax-filing and payment deadlines
• New emergency credits and measures (Canada Emergency Response Benefit (CERB), Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Student Benefit (CESB)
• A one-time special payment to the GST/HST credit and a one-time increase to the Canada Child Benefit (CCB) payment in May
• Reduced minimum withdrawals for Registered Retirement Income Funds (RRIFs)
• Electronic signatures for authorization of certain forms
• Deferring GST/HST remittances and customs duty payments until June 30.