Canada – Extensions on Tax Filings in Light of COVID-19 Crisis
Canada – Extensions on Tax Filings in Light of COVID-19
Canada has announced new financial and tax measures in response to COVID-19. In particular, the Canada Revenue Agency (CRA) will delay tax filing deadlines for individuals to June 1, 2020, and for trusts to May 1, 2020. Following the federal announcement, Quebec’s government announced further extensions for tax and instalment payments due dates in order to harmonize with the federal measures. In addition, eligible employers may have access to a range of temporary relief measures such as a 10-percent wage subsidy and changes to Employment Insurance for affected employees.
Canada has announced new financial and tax measures in response to COVID-19. In particular, the Canada Revenue Agency (CRA) will delay tax filing deadlines for individuals to June 1, 2020, and for trusts to May 1, 2020.
Following the federal announcement, Quebec’s government announced further extensions for tax and instalment payments due dates in order to harmonize with the federal measures.
WHY THIS MATTERS
As the COVID-19 crisis continues to up-end daily life and present a number of challenges for businesses and individuals, the decision to extend the tax filing deadlines will provide relief to taxpayers who may require more time to organize their tax affairs.
More Details on Federal Measures
As noted above, the CRA will delay tax filing deadlines for individuals to June 1, 2020 (from April 30) and for trusts to May 1, 2020.1 In addition, individuals and businesses that owe tax balances and instalments on or after March 18, 2020 and before September 2020, will now have until September 1, 2020, to remit these amounts.
Further, Canada will provide a temporary wage subsidy to help small businesses retain employees and an Emergency Care Benefit to offer financial support to affected individuals. In addition, the Canada Account, administered by the Export Development Corporation (EDC), will provide additional support to companies, including exporters, through loans, guarantees or insurance policies. Eligible employers may have access to a range of temporary relief measures such as a 10-percent wage subsidy and changes to Employment Insurance for affected employees. To provide cash-flow relief, businesses may also choose to defer income tax payments until September 1, 2020. An additional $10 billion has been allocated to the EDC and BDC for loans to small- and medium-sized businesses.
KPMG NOTE
These measures may help businesses maintain their cash-flow despite any disruptions caused by COVID-19.
Related Resources from KPMG in Canada
For additional details, see our English and French TaxNewsFlash-Canada 2020-14, “COVID-19 – Tax Deadline Delay and More Relief Announced” and “COVID-19: Mesures d’aide fédérales,” published by the KPMG International member firm in Canada.
Quebec Harmonizing with Federal Deadline Delays
Following the federal announcement, Quebec’s government announced further extensions for tax and instalment payments due dates in order to harmonize with the federal measures.2 As a result, for 2019 personal tax returns, an individual’s balance of tax and contribution payments will be extended to past August 31, 2020 (from April 30, 2020) and a trust that has a tax due date on or before March 30, 2020 for its 2019 tax return, the payment due date will be extended to past August 31, 2020.
FOOTNOTES
1 For the announcement on the CRA’s website, see: https://www.canada.ca/en/revenue-agency.html .
2 For the announcement on the website for Revenu Québec, see: https://www.revenuquebec.ca/fr/salle-de-presse/communiques-de-presse/details/167313/2020-03-17/ .
RELATED LINKS
The information contained in this newsletter was submitted by the KPMG International member firm in Canada.
SUBSCRIBE
To subscribe to GMS Flash Alert, fill out the subscription form.
We respectfully acknowledge that KPMG offices across Turtle Island (North America) are located on the traditional, treaty, and unceded territories of First Nations, Inuit and Métis peoples.
© 2024 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://kpmg.com/governance.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation.