CRA extends deadlines again
Canada Revenue Agency (CRA) is extending the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments to September 30, 2020. Penalties and interest will not be charged if payments are made by September 30, including the late-filing penalty as long as the return is filed by September 30, 2020.
CRA said it is closely monitoring the economic effects of COVID-19 “and is committed to supporting Canadians throughout it. The CRA understands that individuals and businesses might be dealing with difficulties in meeting their financial obligations, including paying tax debts they may have incurred prior to the crisis.”
CRA waving interest on certain tax debts
The CRA is also waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020 and from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns. This does not cancel penalties and interest already assessed on a taxpayer's account prior to this period, but CRA says it does ensure that a taxpayer's existing tax debt does not grow through interest charges during this difficult time.
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.