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June 3, 2020
Canada: Update on tax return filing deadlines and late-filing penalties
On 25 May and 1 June 2020, the Canada Revenue Agency (CRA) released an update on tax return filing deadlines for corporations, trusts and partnerships. These measures come as welcome relief, especially as the 30 June 2020 filing deadline approaches for many corporations with a 31 December year-end.
The following is a summary of the changes.
Extended filing deadlines
The following additional tax return filing deadline extensions were announced for corporations, trusts, and partnerships.
Late-filing penalty relief
The CRA’s update also confirms that late-filing penalties and interest will not apply, provided the respective returns and administrative tax actions (described above) are filed, and payments are made, by the extended deadline.
Quebec has also announced the following extended filing deadlines:
Corporations – Quebec announced that it will harmonize with the federal extension of the filing deadline for corporate income tax returns. As a result, any Quebec CO-17 income tax return that would otherwise normally be due between 1 June and 31 August 2020 can now be filed by 1 September 2020.
Similarly, for all non-profit corporations with a Form CO-17.SP, Déclaration de revenus et de renseignements des sociétés sans but lucratif, and a Form TP-997.1-V, Information Return for Tax-Exempt Entities, due between 1 June and 31 August 2020, the filing deadline is extended to 1 September 2020. The same extension will also apply to operators that would otherwise have to file their Mining Tax Return (IM-30-V), or Forms IM-30.MX-V and IM-30.DL-V (instead of Form IM30-V), during that period.
Partnerships – Quebec also announced that it will harmonize with the federal extension of the filing due date for partnerships (including specified investment flow-through (SIFT) partnerships). As a result, any Quebec information return of a partnership due between 31 May and 31 August 2020 can now be filed by 1 September 2020.
Trusts – Quebec also announced that it will harmonize with the federal extension of the filing due date for trusts (including SIFT trusts). As a result, any Quebec trust income tax or information return of a trust whose taxation year ended between 2 March and 31 May 2020 can now be filed by 1 September 2020.
In addition, it was announced that the tax balance payable by trusts for their taxation year ended during the 2020 calendar year that would otherwise be payable before 1 September 2020 can now be paid no later 1 September 2020, in line with the deferral previously announced by the Federal Government.
Other information returns, elections, etc. – Quebec also announced that, unless otherwise noted by Revenu Quebec and similar to the Federal Government announcement, other information returns, elections, designations, mandatory or preventive disclosures of aggressive tax planning and responses to information requests that are due in June, July or August 2020 will also now be due on 1 September 2020.
Presumably, these extensions for corporations, trusts and other administrative tax actions also apply to returns and actions due on 31 May 2020, since a filing deadline that normally falls on a Sunday is extended under the Quebec Interpretation Act to the next business day.
Alberta also announced that it was extending the filing due date to 1 September 2020 for Alberta corporate income tax returns (AT1) that would otherwise be due in June, July or August 2020. This extension also applies to returns due on 31 May 2020, since a filing deadline that normally falls on a Sunday is extended by the Alberta Interpretation Act to the next business day.
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