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May 22, 2020: Federal Tax Response to COVID-19

May 22, 2020: Federal Tax Response to COVID-19

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TAX UPDATE Response to COVID-19

May 22, 2020

Tax Filing and Payment Deadlines

As previously announced, the deadline for most individuals to file their 2019 taxes was extended to June 1, 2020. The deadline to pay amounts owed was also extended to September 1, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 1, 2020. Today, the Government clarified that this includes the late-filing penalty as long as the return is filed by September 1, 2020.

Self-employed individuals still have until June 15, 2020, to file their tax returns; the payment deadline for these individuals was also previously extended to September 1, 2020. It is unclear whether late filing penalties will be assessed on returns filed after the June 15thdeadline.

For those who have to pay by instalments, the June 15, 2020 payment due date has also been extended to September 1st. Instalment penalties and interest will not be charged for this payment if it is made by the extended deadline of September 1, 2020.

What Does This Mean?

Taxpayers should still do their best to file by the June 1, 2020 deadline to ensure benefit and credit payments that require 2019 return information are not impacted. Further, if you anticipate a refund, the earlier you file, the earlier the refund can be processed.

Government support for Canadian businesses and workers continues to evolve through the COVID-19 pandemic. Should you have questions, contact your MNP Advisor.

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