Tax-filing deadline extended to Sept. 30

CRA also waives some arrears interest

The federal government announced on July 27 that tax filing and payment deadlines have been informally extended once again, this time until Sept. 30. Though the deadline officially listed remains as June, no late filing penalties or interest will be charged provided the new Sept. 30 deadline is met. However, tax credit or benefit recipients should file as soon as possible to avoid interruptions in payments.

The CRA stated that, “The previously-extended filing due dates for individual, corporation, and trust income tax returns remain unchanged…recognizing the difficult circumstances faced by Canadians, the CRA will not charge late-filing penalties where a 2019 individual return or a 2019 or 2020 corporation, or trust return is filed late as long as it is filed by September 30, 2020.”

More good news: CRA is also waiving arrears interest on existing tax debts (relating to individual, corporate, and trust returns) from April 1, 2020 to Sept. 30, 2020 and from April 1 2020 to June 30, 2020 for GST/HST returns. This measure for existing tax debts won’t cancel penalties and interest already assessed on a taxpayer’s account prior to this period, but existing tax debt will not incur further interest charges during this period.

The CRA also made the following notes on its tax-filing and payment deadlines website page:

Some taxpayers may have received a Notice of Assessment that says the deadline for payment is April 30, 2020 or Sept.1, 2020, which is now incorrect.
On May 15, it was announced that eligible Canadians who are presently receiving the GST/HST credit and/or Canada child benefit (CCB) payments will continue to receive these payments until the end of September 2020. Benefit payments starting in July 2020 and those scheduled for August and September won’t be interrupted.
The CRA states, “If we’re unable to assess your 2019 return by early September 2020, your estimated benefits and/or credits will stop in October 2020 and you’ll have to repay the estimated amounts that were issued to you starting in July 2020.”
By extending the deadlines for federal returns and instalments, the CRA is also extending the deadlines for provincial/territorial individual, trust, and corporate returns and instalments. Note that the CRA does not administer Quebec tax nor Alberta corporate tax.

Check Knowledge Bureau for updates and breaking news on federal tax and income support changes.

Beth Graddon is Marketing & Communications Manager at Knowledge Bureau™, a widely respected financial education institute and publisher, which has welcomed thousands of students from the various financial services to its online and in-class programs.

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