(March 20, 2020) Canada and Québec government updates: Extended filling and payment deadlines
20 March, 2020 -
By Luisa Almazan
This post is also available in:
UHY Victor LLP Statement:
We are all experiencing challenges presented by the spread of this dangerous pandemic.
Our focus over the coming weeks and months needs to be on our clients and our community. We are taking the Canadian and the Québec government recommendations seriously, practicing social distancing, and we urge you to do the same.
We recognize the need to stem the advance of the virus in order to protect those who are most vulnerable in our society.
The Canadian and the Québec governments both announced measures to help individuals and businesses cope with the economic disruption from COVID-19.
For more information regarding these new changes attributed by the federal and Québec governments:
Extensions to both income tax filing and payment deadlines were introduced as follows:
Federal Tax Filing Updates
- The deadline for filing 2019 personal T1 tax returns is deferred until June 1, 2020 (Previous: April 30)
- The deadline for filing 2019 T3 tax returns for trusts is deferred until May 1, 2020 (Previous: March 30)
Federal Tax Payment Updates
- For individuals, the 2019 tax payment deadline are now due September 1, 2020 (Previous: April 30)
- The 2019 taxation year for individuals (or their spouse) who operate a business or are responsible for a family-type resource or an intermediate resource, instalment payments now due September 1, 2020 (Previous: June 15, 2020)
- For trusts (other than specified investment flow-through entities) the 2019 balance owing are now due September 1, 2020 (Previous: March 30)
- For corporations, any income tax payments (instalment payments and balances due) due March 18, 2020, to August 31, 2020, are now due September 1, 2020 (Previous: March 18)
Québec Tax Filing Updates
- The deadline for tax filing individual taxpayers be deferred to June 1, 2020 (Previous: April 30th)
- The deadline for tax filing for Trusts will be deferred until May 1, 2020 (Previous: March 30th)
- The deadline for tax filing corporations are now due June 1, 2020
- The deadline for tax filing for partnerships will be deferred until May 1, 2020 (Previous: March 31, 2020)
Québec Tax Payments Updates
- For individuals, the payment of a tax balance owing for 2019 is deferred until September 1, 2020 (Previous: April 30, 2020)
- For individuals (or their spouse) who operate a business or are responsible for a family-type resource or an intermediate resource, instalment payments due September 1, 2020 (Previous: June 15, 2020)
- For trusts (other than specified investment flow-through entities), the balance owing for the 2019 deadline is September 1, 2020. (Previous: March 30, 2020)
- For corporations, any income tax payments (instalment payments and balances due) due March 18, 2020, to August 31, 2020, are due September 1, 2020.
Business tax measures
Income Tax payments
For the next four weeks, there will be no contact to any small or medium-sized business for assessment of GST/HST or income tax audits from the CRA.
For the vast majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
- All taxpayers to defer, until after August 31, 2020, the payment deadline for most income tax amounts that become owing after March 17, 2020, and before September 2020.
- This relief applies to tax balances due and instalments under Part I of the Income Tax Act.
- No interest or penalties will accumulate on these amounts during this period.
Wage subsidies for eligible small employers
The government of Canada is offering a temporary wage subsidy for a period of three months for small employers equal to:
- 75% of remuneration paid during that period. Limits and restrictions to be announced.
The subsidiary available to CCPC’s, non-profit organizations and registered charities who have an existing business number and payroll program account with CRA on March 18, 2020, and who pay remuneration to an employee.
This benefit can be used immediately with the first remittance period that includes remuneration paid between March 18 and June 20, 2020, by reducing remittances of income tax withheld (but not CPP/QPP/EI) on their employees’ remuneration.
This benefit is available to corporations eligible for the small business deduction, as well as non-profit organizations and charities.
Many financial advisors recommend avoiding unnecessary investment sales and withdrawals while stock market conditions are unfavourable, which also allows for the ongoing deferral of tax on funds not required to meet living expenses.
Minimum withdrawals from Registered Retirement Income Funds will be reduced by 25% for 2020.
Temporary income support for workers
Canadians who are sick, quarantined or that are required to stay home to care for children and do not qualify for paid sick leave qualify for waiving the one-week waiting period to claim Employment Insurance (EI) sickness benefits. (Effective as of March 15, 2020)
The Emergency Care Benefit provides $900 bi-weekly for up to 15 weeks (administered through the CRA), effective as of April 2020), to provide income support to:
- Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits
- Workers, including the self-employed but do not qualify for EI sickness benefits who are taking care of a family member who is sick with COVID-19, such as an elderly parent
- Parents with children who require care or supervision due to school or daycare closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not
Long-term income support for workers
For Canadians who lose their jobs or face reduced hours as a result of COVID’s impact, the Government is:
- Introducing an Emergency Support Benefit delivered through the CRA to provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment
- Implementing the EI Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers, by extending the eligibility of such agreements to 76 weeks, easing eligibility requirements, and streamlining the application process
Other individual relief measures
- GST credit will be doubled for eligible recipients and the additional credit will be paid in one lump-sum in early May
- Canadian child tax benefits will be increased by $300 per child and this additional benefit will be paid in one lump-sum together with the scheduled May 20, 2020 payment
- Canadian and Québec moratorium on student loan interest for 6 months
- The City of Montréal delayed the second instalment of property and business tax to July 2 (Previous: June 1). Click here for details.