CRA extends payment deadline on tax returns, offers interest relief on tax debts

CRA HQ

The Canada Revenue Agency (CRA) has extended the payment deadline for individual, corporate, and trust income tax returns for the current year, including installment payments, from September 1, 2020, to September 30, 2020.

Despite the extensions, the CRA still encouraged Canadians to file their returns as soon as possible.

In May, the CRA extended some of the tax filing deadlines for corporations and trusts to September 1 due to the COVID-19 pandemic. On Monday, the organization announced that penalties and interest will now not be imposed if payments are made by the new deadline of September 30.

The CRA noted that the previously extended filing deadlines for income tax returns have not changed, however, the CRA will now not enforce late-filing penalties where a current year individual, corporation, or trust return is filed late – if it is filed by the new September 30 deadline.

The CRA is also waiving interest on current tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020, as well as from April 1, 2020, to June 30, 2020, for goods and services tax and harmonized sales tax returns. The CRA announced in April that it is also not contacting small and medium-sized businesses to initiate any post-assessment income tax audits until further notice.

RELATED: CRA extends tax filing deadlines for corporations and trusts to September 1

“While this measure for existing tax debts does not cancel penalties and interest already assessed on a taxpayer’s account prior to this period, it ensures that a taxpayer’s existing tax debt does not continue to grow through interest charges during this difficult time,” the CRA said. “This measure provides immediate relief to impacted taxpayers.”

Despite the payment and filing extensions, the CRA is still encouraging Canadians to file their returns as soon as possible, particularly for individuals receiving credits and benefits, such as the Canada Child Benefit.

Image source Wikimedia Commons.

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast