Payment Deadline Extension
The CRA announced that it is extending the payment due date for current year individual, corporate, and trust income tax returns from September 1, 2020, to September 30, 2020. This also includes instalment payments.
Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the late-filing penalty as long as the return is filed by September 30, 2020.
Interest on Existing Tax Debt
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. They will also waive interest on existing debts for GST returns from April 1, 2020, to June 30, 2020.
If you have existing interest and penalties that were already assessed prior to this period, this does NOT cancel those penalties or interest. However, that debt will not continue to grow interest charges during this time.
The previously extended filing due dates for individual, corporate, and trust income tax returns remain unchanged. However, the CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late provided that it is filed by September 30, 2020.
We still encourage everyone to file their individual, corporate, and trust returns as soon as possible, even though payment deadlines have been extended. This is particularly important for individuals receiving credits and benefits, such as the Canada Child Benefit.
For more information, please contact us today.