Global Daily Tax Update

 Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 19, 2020
2020-5405

Canada announces certain tax measures to support Canadians and businesses

In light of recent events, on 18 March 2020, the Canadian Government made some significant announcements related to Canada’s response to supporting Canadians and businesses. These announcements included certain tax measures.

Effective immediately:

The personal tax return filing deadline will be extended from 30 April to 1 June. However, the Canada Revenue Agency (CRA) encourages individuals who expect to receive benefits under the goods and services tax (GST) credit or the Canada Child Benefit not to delay the filing of their returns to ensure their entitlements for the 2020-21 benefit year are properly determined.

For trusts with a taxation year ending on 31 December 2019, the return filing due date has been extended to 1 May 2020.

The CRA will allow all taxpayers, including individuals and businesses, to defer until after 31 August 2020 the payment of any income tax that is owing on or after 18 March and before September 2020. This relief would apply to tax balances due and installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

The CRA will not contact any small or medium-sized businesses to initiate any post-assessment GST/Harmonized Sales Tax (HST) or income tax audits for the next four weeks. For the majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.

To reduce the necessity for taxpayers and tax preparers to meet in person, and to reduce administrative burden, the CRA will recognize electronic signatures as having met the signature requirements of the Income Tax Act. This provision applies to authorization forms T183 and T183Corp, which are forms that authorize tax preparers to file taxes.

The Federal Government announcement follows one by Revenu Québec on 17 March that included similar measures.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Toronto
Ernst & Young LLP (Canada), Montréal
Ernst & Young LLP (Canada), Calgary
Ernst & Young LLP (Canada), Vancouver
Ernst & Young LLP (United States), Canadian Tax Desk, New York

ATTACHMENT

 

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2021, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct