If you haven’t thought about filing your 2019 taxes yet then you’ll be pleased to learn that the deadline has been extended. It is still my goal to get everyone’s personal taxes filed by April 30th so if you have them ready there is no reason to delay.
The CRA has extended the filing due date for 2019 tax returns to June 1, 2020. Although this gives you more time to file your returns my advice is to still aim to get your returns done on time.
However, if you are experiencing financial challenges due to the COVID-19 pandemic it may be worth noting that the CRA are processing any refunds due within 10-14 business days of filing, so the extra cash could come in useful at this difficult time.
What if I owe Taxes?
The CRA have also extended any income tax balances due (including instalments) to August 31, 2020 without incurring any interest or penalties assuming they became due after March 18th 2020. If you have amounts that were due before March 18th 2020 make sure you pay them as soon as possible.
Corporate Income tax
Deadlines for payment of corporate income tax payable under Part I of the Income Tax Act that become due on or after March 18, 2020 (also including instalments) and before September 2020 are deferred to September 1, 2020. No interest will accumulate on these amounts during this period.
Just like personal taxes if you have amounts that were due before March 18th 2020 make sure you get those paid as soon as possible as they are still subject to interest and penalties.
Taxpayers may defer a number of other administrative tax actions required under the Income Tax Act that are due after March 18, 2020, until June 1, 2020. These include filing of income tax returns, forms, elections, designations, and responses to information requests. This includes corporate income tax returns.
Payroll and scientific research and experimental development (SR&ED) due on regular schedule
Payroll deductions and all related activities must continue to be done on time. As well, the extension does not apply to SR&ED prescribed forms and investment tax credits including the apprenticeship job creation tax credit. These claims cannot be accepted if they are submitted later than 12 months after the due date of the related income tax return. CRA has no discretion in this regard.
A GST/HST remittance deferral is offered which would extend until June 30, 2020 the time for:
- monthly filers to remit amounts collected for the February, March and April 2020 reporting periods;
- quarterly filers to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
- annual filers, whose GST/HST return or installment are due in March, April or May 2020, to remit amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.
In other words, any GST/HST which would otherwise become payable at the end of March, April or May will instead be payable by June 30, 2020.
Finally, in respect of customs duty and sales tax for importers, the payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a blog such as this, a further review should be done by a qualified professional.
No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.