Canada: CRA clarifies travel restriction-related relief (COVID-19)

CRA clarified the meaning of “travel restrictions” and the process for requesting interest and penalty relief

CRA clarified the meaning of “travel restrictions”

The Canada Revenue Agency (CRA) clarified the meaning of “travel restrictions” and the process for requesting interest and penalty relief for individual taxpayers affected by international travel restrictions—relief offered in response to the coronavirus (COVID-19) pandemic.

The CRA reported that generally it will consider relief on a case-by-case basis for Canadian residents who ordinarily work in a country other than the United States, and for foreign non-U.S. resident employees who are working in Canada as a result of travel restrictions.

In addition, the CRA advised that it intends to provide additional guidance for affected individuals and employers for their 2021 tax years.

The CRA provided these clarifications in response to questions on cross-border tax relief (1 April 2021) for certain individuals and employers. Read TaxNewsFlash

The CRA also reported it will consider taxpayer situations as part of its answers, and advises individuals and employers to be in contact with the CRA regarding relief for other specific situations.

Read an April 2021 report [PDF 214 KB] prepared by the KPMG member firm in Canada



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