In ever-evolving circumstances, Prime Minister Justin Trudeau has announced an $82-billion stimulus package to help Canadians and businesses amid the COVID-19 pandemic. These measures aim to stabilize the economy and support Canadians facing hardships.
The announcement comes as part of Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses, which highlights relief efforts.
What Does This Mean for Taxpayers?
New return filing due dates:
- Individuals: June 1, 2020
- Trusts with a taxation year ending on December 31, 2019: May 1, 2020
However, the CRA does encourage “individuals who expect to receive benefits under the [Goods and Services Tax Credit (GSTC)] or the Canada Child Benefit not to delay the filing of their return to ensure their entitlements for the 2020-21 benefit year are properly determined.”
Deferral of Income Tax Payments
Taxpayers receive further relief as the CRA will also defer any income tax amounts owing until after August 31, 2020.
Under Part 1 of the Income Tax Act, this applies to:
- Tax balances due
During this time, no penalties or interest will accumulate.
Further Tax Modifications
The CRA is making additional efforts and adjustments to limit the need to meet in person while supporting the needs of Canadians.
CRA Outreach Program
The CRA is adapting its Outreach Program from in-person support to over the phone or webinar services. They will continue to assist Canadians with their tax obligations and ensure they receive the benefits to which they are entitled.
Community Volunteer Income Tax Program
In a time calling for self-isolation, many community organizations may consider reducing or cancelling services under the Community Volunteer Income Tax Program. The CRA is making additional efforts to increase the filing of tax and benefit returns electronically.