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July 27, 2020: Update on 2019 Federal Tax Deadline

27/07/2020


The Federal Government has further extended the payment due date for current year individual, corporation and trust income tax returns (including instalment payments) to September 30, 2020 from September 1, 2020. Penalties and interest (including late filing penalties) will not be charged if payments are made and the return is filed by the extended deadline of September 30, 2020.

Interest on Existing Tax Debt

The CRA is also waiving interest on existing tax debts as follows: 

Tax Debt Waiver of Interest Period
Individual, corporate and trust income tax returns April 1, 2020 – September 30, 2020
GST / HST returns April 1, 2020 – June 30, 2020


Please note this measure does not cancel penalties and interest already assessed on a taxpayer’s account prior to this period. 

Provincial Announcements - Quebec

The Quebec government has mirrored the federal announcement by extending their deadline for the payment of taxes owing to September 30, 2020. They are also waiving interest on existing tax debts during the period of March 17, 2020 to September 30, 2020.

What Does This Mean?

Taxpayers and businesses should still do their best to file as soon as possible if they have not already done so. This is especially important for individuals to ensure benefit and credit payments that require 2019 return information are not adversely impacted. If a 2019 individual tax return has not been assessed, the Canada Revenue Agency is calculating benefits and / or credits for the July to September 2020 payments based on information from 2018 tax returns.

However, if the 2019 individual tax returns are not received and assessed by early September 2020, estimated benefits and/or credits will stop in October 2020, and individuals may have to repay the amounts that were issued as of July 2020. 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.

This situation is dynamic and government programs can change. To stay up to date and receive insights from our team, visit our COVID-19 Business Advice Centre at MNP.ca/COVID-19. We’re dedicated to supporting Canada’s business leaders by providing timely information and practical solutions for navigating through the uncertainty of COVID-19.