Canadians who owe the tax man are getting another reprieve because of COVID-19
Canadians who owe the tax man are getting another reprieve because of COVID-19.
The Canada Revenue Agency (CRA) says the deadline to pay has been extended from September 1st to September 30th. The new deadline applies to individual, corporate, and trust income tax returns, including instalment payments.
CRA says it’s aware some Canadians have received a notice of assessment that says the deadline for payment is April 30 or September 1st, which are now incorrect.
Late-filing fees are also waived until September 30th.
But the CRA is encouraging everyone to file as soon as possible to avoid interruptions to benefits like the Canada Child Benefit. Interruptions were temporarily halted for anyone who couldn’t file by the June 1st deadline.
“Currently, if a 2019 individual tax return has not been assessed, the CRA is calculating benefits and/or credits for the July to September 2020 payments based on information from 2018 tax returns,” said the CRA.
“However, if 2019 individual tax returns are not received and assessed by early September 2020, estimated benefits and/or credits will stop in October 2020 and individuals may have to repay the amounts that were issued as of July 2020.”
The federal government extended the deadline to file and pay in March when the coronavirus pandemic first began taking its massive toll on the economy and jobs.
The CRA estimates deferring payments is costing Ottawa $55 billion dollars, which it plans to recoup down the road.
Filers will also get relief on interest payments.
“The CRA is also waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020 and from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns,” said the CRA.
“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.”
Source: Yahoo Finance
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