Canada: Extended tax relief measures in Quebec (COVID-19)
Canada: Extended tax relief measures in Quebec
Revenu Quebec in late May 2020 announced that it was extending tax relief measures intended to support taxpayers affected by the coronavirus (COVID-19) pandemic.
- The credit for employer contributions to the health services fund has been extended until 29 August 2020 (from 6 June 2020), harmonizing with an extension regarding the Canada emergency wage subsidy. The health services fund credit is available to “specified employers” that receive the Canada emergency wage subsidy and that maintain an establishment in Quebec. It is intended to offset an employer’s health services fund contributions that are not covered by the Canada emergency wage subsidy, and generally applies for the duration of the Canada emergency wage subsidy program.
- The due date for trusts to pay any income tax balances owed (including instalments) has been extended to 1 September 2020 (for trusts with a tax year ended during the 2020 calendar year that would otherwise be payable before 1 September 2020). Previously, the deadline had only been extended to 1 September 2020 for trusts with tax and instalment balances for the 2019 tax year, which would have been payable between 17 March 2020 and 31 August 2020. This measure harmonizes with similar federal measures.
- Tax legislation is being amended to grant Revenu Quebec discretion to extend the time limit for filing applications for certain tax incentives, for up to one year from the end of the filing deadline otherwise applicable. This potential extension specifically would apply for certain tax credit applications—that is, for certain tax credits for businesses, as well as applications for deductions under Quebec’s scientific research and experimental development expenditure (SR&ED) program. Ordinarily, taxpayers that 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 17 March 2019. An extension may also apply to credit applications filed within 12 months after the end of the relevant filing deadline, when the deadline to submit a notice of objection or bring an appeal for the relevant tax year had not expired in the period between 17 March 2019 and 29 May 2020, among other conditions.
- To qualify for the extension, eligible taxpayers must (1) apply in writing to Revenu Quebec, and (2) include in their application any required forms and documentation that ordinarily would be required to apply for these credits or deductions. The application must also satisfy any other requirements, and Revenu Quebec has indicated that it will only exercise its discretion to extend a taxpayer’s filing deadline in exceptional circumstances.
Read a June 2020 report prepared by the KPMG member firm in Canada
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