Apr 19, 2021
As you may know, we have supported a request to the CRA to extend the April 30 deadline to June 15. But if the deadline is NOT extended, here are some practical tips to reduce the burden of a COVID tax season.
In response to queries regarding filing matters that seemed not to be addressed in the CRA’s previously announced tax filing and payment extensions on March 27, 2020 the CRA issued welcome clarifications. The CRA has agreed to defer to June 1, 2020 a number of additional administrative tax actions that are due after March 18, 2020.
The March 27, 2020 CRA release states that, unless otherwise noted, the administrative actions to which the extension applies “include the filing of returns, forms, elections, designations and responses to information requests”. The CRA has summarized their updated positions in a schedule on their website.
The CRA has specifically indicated that the deadline for payroll remittances and withholding taxes under Part XIII are not extended.
Based on our dialogue with the CRA over the last week we have confirmed that penalties based on unpaid balances, for late filing forms such as personal and corporate taxes, will be based on the extended deadlines. So what was clarified today?
Please note that, for a partnership where all partners are corporations, the deadline of the T5013 for the partnership’s December 31, 2019 fiscal period remains at its legislated May 31, 2020 date;
The CRA announcement states that this extension “applies to balances and instalments under Part I of the Income Tax Act”. It appears the extension does NOT apply to the payment of Part IV tax.
The due date of personal tax returns for self-employed individuals and their spouses is June 15, 2020, so no extension is required at this time.
Penalties and interest will be waived if the extended deadlines for tax-filing and payments are met. However, taxpayers who are unable to file a return or make a payment by these extended deadlines, because of COVID-19, will be able to request the cancellation of penalties and interest charged, if any, under the Taxpayer Relief Measures.
The government has also announced extensions for the remittance of certain GST/HST and customs duties. These items are explained on the CRA’s website.