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Covid-19 and Tax Filing Deadlines in Canada

Canada Tax Filing and Payment Extensions amidst Covid-19

This post is not being updated anymore. Please visit our page income tax services during Covid-19. 

Updated on July 27, 2020

Updated on March 18, 2020 (11:45 EST)

As announced by Prime Minister Trudeau:

  • Tax filing deadlines are extended until June 01, 2020
  • Tax Payments are deferred until August 31, 2020 for the amounts due after March 18, 2020 and before September.

Updated on March 17, 2020 (18:00 EST)

The tax filing deadline in Canada extended until June 01, 2020

As per the National Post, there is an extension to tax filing deadline in Canada and federal ministers are expected to make an announcement on March 18, 2020.

  • The personal tax return filing deadline – June 01, 2020
  • Personal tax payment deadline to make payment interest-free – July 31, 2020
  • Corporate tax (and any scheduled installment payment) interest-free and penalty-free – July 31, 2020 (payments which will be due after March 18, 2020)

A formal confirmation on the above is expected Wednesday, March 18, 2020.

Updated on March 17, 2020 (12:00 EST)

No Confirmation of Extension Yet.

As per Prime Minister’s comments on March 17, 2020, we can expect a decision by end of this week.

 By the end of the week, we will have more to say about changes for the upcoming tax season. (PM Trudeau)

Canada Revenue Agency has identified certain relief provisions but did not provide any details yet:

Updated on March 16, 2020 (18:30 EST)

Canada Revenue Agency is ‘possibly’ announcing the extension of personal tax filing deadline soon

As per tweet from Canada Revenue agency, government is discussing the possibility of extension of personal tax filing deadlines, however, it is not confirmed yet.

Updated on March 15, 2020

Canada Revenue Agency says there is no deadline extension for personal taxes in Canada as per the tweet on their official twitter account.

Updated on March 14, 2020

There is a public health emergency in some parts of the world due to Covid-19 or (Coronavirus) outbreak. Since the World Health Organization had declared Covid-19 a pandemic, there is a heightened panic among the consumers & businesses. Businesses are impacted due to change in demand and supply, consumer behavior and disruption of the supply chain. Stock markets have reacted with dramatic drops in indices twice this week. Though there is an uplift on the opening of March 13, 2020, but volatility is expected to be there for a month or two.

The number of cases in Canada are also increasing by every passing day. So far Canada seems to have done much better than its southern neighbor. Toronto Stock Exchange has already suffered huge losses since the beginning of this pandemic. Businesses are being affected negatively due to change in demand and supply here too. In general, there is less panic here in Canada as compared to the United States.

This tax season for 2020, taxpayers are going to be impacted, majorly in two ways:

  1. Tax filing delays – Professional tax preparers and their staff are at risk. It is very unpredictable when one of the staff members gets sick and the whole office needs to be quarantined. For tax preparers who are depending on the walk-in clients may see less traffic due to a fear of the general public to interact socially.
  2. Payment of Taxes – Businesses are seeing a demand shift and disruption of the supply chain, combined with a slow down of economy due to coronavirus outbreak. This may affect the ability of businesses and individuals to pay their taxes on-time.

No Extension to personal tax filing deadline in Canada due to Coronavirus

As of the date of writing of this post, Canada Revenue Agency has said they are monitoring the situation, and this is too early for them to determine whether the tax filing deadline should be delayed or not. It is expected that the deadline would not be delayed if the situation remains under control, however, it can be extended if there is a major outbreak. So far, it is not extended.

In Canada, individual income tax returns (T1) are due by April 30, 2020, for the year 2019. For those who are self-employed, the deadline is June 15, 2020, however, any taxes owed must be paid by April 30, 2020.

US to extend tax filing deadline due to Covid-19

President Trump announced that he will instruct the US treasury department to extend the April 15 deadline for the taxpayers negatively impacted due to the corona-virus outbreak.

What to do if you are impacted due to Coronavirus outbreak?

Taxpayer Relief Provisions in Canada

In Canada, there are taxpayer relief provisions due to the number of circumstances. You can always request for waiver of penalties and interest on the late tax payment due to “extraordinary circumstances”. You can always file the relief from penalties and interests.

You can file your tax return without visiting your professional tax preparer

If you are affected by the outbreak you can still do your taxes from your home. A lot of software gives options to individuals to file their own taxes. If you need the help of an income tax professional whether with your personal taxes or corporate taxes in Canada, you can transmit your documents electronically to the tax preparers who offer this kind of service. Your tax preparer might be able to accommodate you without the need of an in-person meeting.

The above post is written on March 13, 2020, and we intend to keep it up-to-date on a daily basis. Due to the unpredictability of the situation, there might be delay sometimes, we recommend you to kindly check other resources for the updated news as well.

If you are an individual or a business that is negatively affected by the coronavirus outbreak, you can seek help from Maroof HS CPA Professional Corporation. For both Personal and Corporate income tax services in Canada, you can seek a remote help right from your home or office, without the need to visit our offices. If you are suffering financial hardships or other circumstances and need help to discuss waiver of penalties and interests, and payment arrangements with Canada Revenue Agency, we can help you with those too.

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