Update – Extended Tax Filing and Payment Deadlines

The purpose of this newsletter is to update our clients and colleagues on the status of tax filing and payment due date extensions, particularly those that are now close to ending.

Since the Covid-19 crisis began in Canada in mid-March 2020, the Canada Revenue Agency (“CRA”) has announced many tax filing and payment extensions to assist taxpayers in meeting their obligations.

T1 Personal Income Tax and Benefit Returns – Extended Deadline

CRA has announced that penalties and interest will not be charged on 2019 T1 Personal Income Tax and Benefit Returns where the return is filed, and any balance owing is paid, by September 1, 2020.  This extension also applies to personal income tax instalments ordinarily due on June 15, 2020.

Penalties and interest will not be applied to most 2019 information returns, elections, designations, and information requests provided that they are filed, and any associated payments due are made, by September 1, 2020.

T2 Corporation Income Tax Returns – Extended Deadline

Corporations that would otherwise have a T2 return filing deadline between May 31, 2020 and August 30, 2020 may now file their T2 returns no later than September 1, 2020.  The extension also applies to forms T106, T1134, T1135, and any other elections, forms, and schedules that are normally filed with the T2 return.

Balances and instalments that become payable on or after March 18, 2020 and before September 1, 2020 are now due on September 1, 2020.

Goods and Services Tax (“GST”) / Harmonized Sales Tax (“HST”) Extended Payment Deadline

Registrants with GST/HST remittances due on or after March 27, 2020, and before June 1, 2020, could defer those payments to June 30, 2020.  There have no announcements of further extension, so these payments should be made on or before June 30, 2020 to avoid arrears interest and potential penalties.

Objections – Extended Deadlines

Notices of objection, which are filed to dispute tax assessments or reassessments, originally due between March 18, 2020 and June 30, 2020 were extended to June 30, 2020.  No further extensions have been announced.

Collections – Deferred Action

Collection activities in respect of new debts were, and remain, suspended until further notice. CRA has announced an intention to offer flexible payment arrangements once collection activities resume.

Audits and requests for information

CRA has announced it is resuming audits and requests for information and will prioritize audits that:

  • are beneficial to the taxpayer;
  • possess a matter of urgency for the taxpayer;
  • involve higher dollar figures;
  • are close to completion;
  • have a strategic importance to the Government of Canada; or
  • combat suspected fraud and other criminal activity.

CRA also announced that requests for information issued before March 16, 2020 will be reviewed, and that taxpayers and third parties such as tax advisors will be contacted where CRA continues to require the requested information.

Other Resources

CRA has summarized current information on tax filing and payment deadlines here:

Information on GST/HST remittance due dates is located here: