COVID-19 UPDATE: Filing deadline extensions announced for corporations, trusts
UPDATE: On the heels of the federal government’s announcement this week of penalty deferrals for late T1 filings—which came in addition to a previous extension of the 2019 tax filing deadline to June 1, 2020, all to help Canadians impacted by COVID-19—Ottawa is also granting filing deadline extensions for certain corporations and trusts.
Corporations that would have otherwise had a filing deadline on May 31st, 2020, or in June, July or August (e.g., fiscal year-ends between November 30th, 2019 and February 28th, 2020), now have until September 1st, 2020 to file their T2 corporate tax returns without penalty. The extension applies to form T106, T1135, and any elections, forms and schedules that must be filed with the return. Similarly, trusts with filing deadlines in June, July or August, 2020, now have until September 1st, 2020, to file without penalty.
Corporations with filing deadlines between March 18th and before May 31st, 2020, are still required to file by June 1st, 2020.
On the personal tax side, if individuals pay outstanding personal taxes owed by September 1, 2020, late penalties and interest will not be applied. Self-employed individuals have until June 15, 2020, to file their 2019 tax returns, and have also had their payment deadline extended to September 1, 2020. The due date for installment payments due on or after March 18 and before September 1, 2020, has also been extended to September 1, 2020, with penalties and interest waived if payments are made by that date.
The Canada Revenue Agency is still encouraging Canadians to file their taxes on time to ensure they receive benefit and credit payments. The agency also says that it’s experiencing major delays processing paper income tax and benefit returns, and is encouraging Canadians to file digitally if possible.
Here’s a summary of 2019 tax year filing deadlines for individuals and business owners:
Individuals
Filing deadline: June 1, 2020
Payment deadline: September 1, 2020
Self-employed individuals
Filing deadline: June 15, 2020
Payment deadline: September 1, 2020 (“Applies to balances and installments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, 2020”)
Corporations with a filing deadline between March 18th and before May 31st 2020
Filing deadline: June 1, 2020
Payment deadline: September 1, 2020
Corporations with a filing deadline on May 31, 2020, or in June, July or August, 2020
Filing deadline: September 1, 2020
Payment deadline: September 1, 2020
Trusts
Filing deadline for current tax year (including the associated T3 information return):
- May 1, 2020 (“Applies to trusts with a tax year end date of December 31, 2019”)
- June 1, 2020 (“Applies to trusts that would otherwise have a filing due date in April or May”)
- September 1, 2020 (“Applies to trusts that would otherwise have a filing due date in June, July or August, 2020”)
Payment deadline for current tax year: September 1, 2020 (“Applies to income tax balances and installments due on or after March 18 and before September 1, 2020”)
As we noted previously, businesses, including self-employed individuals, will be allowed to defer GST/HST payments, as well as custom duties on imports, until June 30, 2020. The deferral generally applies to remittances that would be due between March and the end of May, 2020. Monthly, quarterly and annual GST/HST filers will qualify for the deferral.
For information on tax filing deadlines or COVID-19 relief programs such as the Canada Emergency Wage Subsidy or the Canada Emergency Business Account, contact a member of our team now.
Armando Iannuzzi, Co-Managing Partner
