The CRA Announces Payment Deadline Extension Due to Pandemic

The Canadian Revenue Agency (CRA) has announced a payment deadline extension until September 30th, 2020. This is due to the disruption caused by the current COVID-19 pandemic.

They additionally announced a temporary suspension on interest accrued from tax debt repayments from April 1st until September 30th, 2020.

These temporary policies aim to help millions of Canadians alongside previously announced economic measures,

A Payment Deadline Extension for Candian Taxpayers

Canadians are being told that they must file all their individual, trust, and corporate claims for this tax year. However, the CRA is offering a payment deadline extension from September 1st until September 30th.

No fees, including the late-filing penalty, will be applied to taxpayers providing that they file their taxes by September 30th. Failure to file will result in the loss of all tax benefits from October 2020.

This gesture has been made to account for the socio-economic effects of the current pandemic. It will also allow Canadians extra time to file their taxes correctly in relation to the temporary fiscal changes.

A Sigh of Relief for Business

This announcement by the CRA aims to mainly target Canadian businesses by helping them remain afloat. This is seen as paramount to offsetting a possible economic recession as a consequence of the disruption caused by COVID-19.

One such policy was the temporary suspension of interest accrued from tax debt repayments. This particular measure aims to help more businesses stay open after a period of economic stagnation. It's also hoped that it will ensure that they don't default on their repayments.

Additionally, the deferral of GST and HST payments will give businesses more time to account for any disruption to their services.

The CRA have also stated that no SME businesses will be audited for GST/HST or income tax audits for the next four weeks. However, SME businesses still should ensure that they keep records as accurately as possible.

One important thing to account for, as stated on https://taxpage.com/articles-and-tips/hst/, is that 'There is no separate requirement to register for the HST. Any GST registrant is automatically an HST registrant and is required to determine the correct rate of tax to charge and remit based on the place a sale takes place.'

Space to Recover and Grow

The measures introduced by the CRA don't aim to drop outstanding tax debts or obligations. However, what they do seek to achieve is a chance for all Canadians to ensure that they can meet their fiscal responsibilities.

With these temporary policies in place, it's hoped that Canada will avoid a devastating recession once this crisis ends.