Canada – COVID-19: CRA Further Extends Travel Restrictions Tax-Related Relief
Canada–Tax Authority Extends Relief due to Travel Restr
Payment due dates for 2019 individual tax returns and certain other returns, as well as for instalment payments which had been set at September 1, 2020, have been further extended by Canada’s tax authority to September 30, 2020. Coronavirus-related travel restrictions may not affect the tax residency of a nonresident individual, or the ability of a cross-border employee to qualify for treaty benefits on employment income. Taxpayers whose “over-stay” situation due to the coronavirus pandemic persists past September 30 are advised to contact the tax authority.
Multinational entities and individuals can continue to rely on the Canada Revenue Agency (CRA) relief for cross-border tax issues caused by travel restrictions until September 30, 2020.1 (For related coverage, see GMS Flash Alert 2020-335, July 30, 2020.)
The CRA says it does not anticipate further extensions of the guidance, and taxpayers whose situation persists past September 30 are advised to contact the CRA.
Payment due dates for 2019 individual tax returns and 2019 or 2020 corporation or trust returns, as well as for instalment payments which had been set at September 1, 2020, have been further extended to September 30, 2020.
WHY THIS MATTERS
This new guidance should relieve any anxiety taxpayers in Canada may have felt about impending deadlines and due dates and their residency status in light of their extended stays in Canada (and for Canadians overseas) due to COVID-19-related restrictions.
This guidance also clarifies that these travel restrictions may not affect the tax residency of a nonresident individual, or the ability of a cross-border employee to qualify for treaty benefits on employment income.
In addition, the CRA’s guidance provides administrative relief to reflect its processing delays regarding certain withholding tax waiver requests and Section 116 Certificates.
Previously, the CRA indicated that its guidance would only apply from March 16, 2020 to August 31, 2020, but that it was prepared to extend its relief measures where needed.
1 See the CRA webpage at: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html.
This article is excerpted from “CRA Further Extends Travel Restrictions Relief,” in TaxNewsFlash-Canada (no. 2020-70, September 1, 2020), a publication of the KPMG International member firm in Canada.
The information contained in this newsletter was submitted by the KPMG International member firm in Canada.
To subscribe to GMS Flash Alert, fill out the subscription form.
© 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.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.