March 24, 2020 Update of COVID-19 Related Tax Extensions
The CRA has updated its table of payment and filing extensions (reproduced below). Please note that, contrary to the date mentioned in the government’s prior release about extensions, tax payments for many entities are now confirmed to be due “by September 1, 2020” rather than “After August 31, 2020”.
Of important note is the fact that there are, currently, no extensions to the following filing due dates:
- Partnerships with December 31, 2019 year ends – March 31, 2020 or, where all partners are corporations, May 31, 2020;
- T1134 – Information Returns Relating to Controlled and Not-Controlled Foreign Affiliates – March 31, 2020 for December 31, 2018 year ends;
- Corporations – 6 months after the year end for tax returns.
The CRA does not address the penalties for a corporation that files its tax return late but pays its tax balance before the extended balance due date of September 1, 2020.
Please note that personal tax returns for self-employed individuals and their spouse have a due date of June 15, 2020, so no extension has been granted.
The CRA has not specifically mentioned any extensions for Foreign Reporting Forms T1135, T1141 and T1142. These forms are due on the filing deadline of the tax returns to which they relate. If the filing deadline is considered to be the legislated deadline, rather than the administratively extended deadline, the due dates will continue to be March 30, 2020 for trusts and or April 30, 2020, for individuals who are not self-employed.
If the CRA adopts the more reasonable position that the filing deadline will be based on the administratively extended deadlines for trust and personal tax returns, the deadline for Forms T1135, T1141 and T1142 will similarly be extended.
At the time of writing this updated Tax Alert our request for confirmation of the accepted approach had not been received from the CRA. If the deadlines are not extended, we imagine the CRA will receive an influx of request for relief from penalties and interest under the Taxpayer Relief Measures.
||The deadline to file your income tax and benefit return will be deferred until June 1, 2020.
The deadline to pay any balance due for your individual income tax and benefit return for 2019 has been extended from April 30, 2020, to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.
|Self-employed and their spouse or common law partner
||For self-employed individuals or those who have spouses or common-law partners that are self-employed, the deadline to pay any balance due for your individual income tax and benefit return has been extended from April 30, 2020, to September 1, 2020.
||The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.
||For trusts with a taxation year end of December 31, 2019, the filing due date of March 31, 2020, will be deferred to May 1, 2020.
Furthermore, all trusts that have an upcoming income tax balance due date or an income tax instalment payment due date before September 1, 2020, will have their payment due date effectively extended to September 1, 2020.
Penalty and interest implications for upcoming trust tax obligations not covered by the relief described above will be considered by the CRA on a case-by-case basis.
||The Charities Directorate is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020 and December 31, 2020.