Businesses may defer certain GST/HST and QST payments and remittances until June 30, 2020.
The CRA and Revenu Quebec recently announced that businesses will be allowed to defer GST/HST and QST payments and remittances where they are due on or after March 27, 2020 and before June 2020. While both tax authorities note that the GST/HST and QST returns due during this period should continue to be filed on time, both also advise that no penalties will be assessed if those returns are filed no later than June 30, 2020. Revenu Quebec further clarified that the QST relief does not extend to other provincial specific taxes, such as the tobacco tax and the tax on insurance premiums.
Many businesses may be able to improve their current cash flow under these new relief measures. However, these businesses should ensure they remit by June 30, 2020 the GST/HST and QST amounts due on or after March 27, 2020 and before June 2020 to help reduce non-deductible interest, and possible penalties, that the CRA and Revenu Quebec may assess after this date.
Download this edition of the TaxNewsFlash to learn more.
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.