CRA extends tax payment deadline to Sept. 30

The Canada Revenue Agency (CRA) is extending the payment due date for current-year individual, corporate and trust income tax returns — including instalment payments — from Sept. 1 to Sept. 30.

The CRA said Monday that it will not charge penalties and interest if payments are made by the extended deadline of Sept. 30. This includes the late-filing penalty as long as the return is filed by Sept. 30.

“The CRA understands that individuals and businesses might be dealing with difficulties in meeting their financial obligations, including paying tax debts they may have incurred prior to the crisis,” the tax agency said in a press release announcing the changes.

The CRA is also waiving interest on existing tax debts related to individual, corporate and trust income tax returns from April 1 to Sept. 30, and for GST/HST returns from April 1 to June 30.

“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. This measure provides immediate relief to impacted taxpayers,” the release said.

The previously extended filing due dates for individual, corporate and trust income tax returns remain unchanged, the CRA said. However, “recognizing the difficult circumstances faced by Canadians,” the agency will not impose late-filing penalties where a current-year return is filed late, provided that it is filed by Sept. 30.

The CRA is encouraging Canadians to file their tax returns as soon as possible — particularly individuals receiving credits and benefits such as the Canada Child Benefit — even though payment deadlines are being extended.

The CRA has temporarily suspended interruptions for those unable to file their income tax and benefit return by the June 1 deadline. If a 2019 individual tax return has not been assessed, the CRA is calculating benefits and/or credits for July to September 2020 payments based on information from 2018 tax returns.

However, if 2019 individual tax returns are not received and assessed by early September, estimated benefits and/or credits will stop in October and individuals may have to repay the amounts that were issued as of July, the CRA said.

Rudy Mezzetta

Rudy is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on tax, estate planning, industry news and more since 2005. Reach him at rudy@newcom.ca.