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Quebec announces extended taxpayer relief

Quebec announces extended taxpayer relief

New COVID-19 relief available for employers, trusts, and more

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Revenu Quebec announced it is extending a support measure for employers, pushing back the tax payment deadlines for trusts and allowing for the potential extension of filing deadlines for businesses' tax incentive applications. These measures were announced in Quebec Information Bulletin 2020-08 on May 29, 2020, they are intended to support taxpayers affected by the COVID-19 pandemic.

Measures include:

  • A new extension to the employer contribution credit to the Health Services Fund (i.e., the HSF credit) until August 29, 2020 (from June 6, 2020)
  • Extended deadline for payments of trust income tax balances, including instalments, payable for 2020, to September 1, 2020
  • Information about Revenu Quebec's new discretionary power to extend the time limit for applications for business-related tax incentives.

HSF credit

The employer contribution credit to the HSF is now extended until August 29, 2020 (from June 6, 2020), harmonizing with the extension made to the Canada Emergency Wage Subsidy (CEWS). This HSF credit is available to "specified employers" who receive the CEWS and who maintain an establishment in Quebec. It is intended to offset an employer's HSF contributions, which are not covered by the CEWS, and generally covers the entire duration of the CEWS program (see TaxNewsNow, "Quebec relief for employer HSF payroll contributions").

Trusts — Extended information return and income tax deadlines

Quebec announces it will extend to September 1, 2020, the payment of any income tax balances payable, including instalments, by a trust for its taxation year ended during the 2020 calendar year, which would otherwise be payable before September 1, 2020. Previously, Quebec had only provided an extension to September 1, 2020 in respect of a trust's tax and instalment balances for the 2019 taxation year, which would have been payable between March 17, 2020 and August 31, 2020. This harmonizes with similar federal measures.

Potential one year extension of tax incentives application deadlines

Lastly, the province is amending its tax legislation to grant Revenu Quebec discretion to extend the time limit for filing applications for certain tax incentives, for up to one-year following the end of the filing deadline otherwise applicable. Specifically, this potential extension applies to applications for certain tax credits for businesses, as well as applications for deductions under the province's scientific research and experimental development expenditure (SR&ED) program. Ordinarily, taxpayers who fail to file by the applicable fiscal deadline would be ineligible for the relevant tax credit or deductions for SR&ED expenditures.

An extension may be granted for filing deadlines that are on or after March 17, 2019. An extension may also apply to applications that have been filed within 12 months after the expiry of the relevant filing deadline, where the deadline to submit a notice of objection or bring an appeal for the relevant taxation year has not expired in the period between March 17, 2019 and May 29, 2020, among other conditions.

To receive the extension, affected taxpayers must apply in writing to Revenu Quebec and include in their application any related prescribed forms and documentation ordinarily needed to apply for these credits or deductions. The application must also satisfy any other requirement established by Revenu Quebec. Revenu Quebec says it will only exercise its discretion to extend a taxpayer's filing deadline in exceptional circumstances.

For more information, contact your KPMG advisor.

Information is current to June 9, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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