Even in the warped reality of the COVID-19 pandemic, Canadians must file their taxes to receive many of the benefits they’re entitled to. Around two million people could face interruptions to some federal and provincial payments if they wait too long to send in their 2019 tax returns, the Canada Revenue Agency warns.

“The CRA recognizes that in the current COVID pandemic environment it’s imperative for benefits to continue without disruption to Canadians,” says Heather Daniels, director-general of the Benefit Programs Directorate at the CRA.

But some Canadians will face payment delays if the CRA can’t process their 2019 returns before the beginning of September, Daniels notes.

Amid the novel coronavirus pandemic, Ottawa pushed the deadline for most individuals to file taxes from April 30 to June 1 while telling Canadians they had until Sept. 1 to pay any taxes owing without facing interest or penalties. (The tax-filing deadline for self-employed Canadians, however, remained June 15.)

Things to know when filing taxes during coronavirus pandemic

Even those who missed the postponed tax cutoff wouldn’t be immediately penalized, the federal government said. Canadians who’d been receiving the Canada Child Benefit (CCB) and the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, for example, would continue to get payments until September 2020 even if they missed their filing deadline.

The CCB is a tax-free monthly benefit for eligible families with children under 18 years of age, while the GST/HST credit is a quarterly payment for low-income Canadians. Both are tax-free and may include payments from provincial and territorial programs.

Canadians, including those with no income, must file taxes in order to access credits such as the GST/HST tax credit and benefits like the Canada Child Benefit as well as the Old Age Security pension and the Guaranteed Income Supplement.

For late-filers, the CRA has been using 2018 tax-year information to calculate the CCB and GST/HST credit amounts for July, August and September, according to Daniels. But those payments could stop in October if the CRA doesn’t receive your 2019 return by early September, the CRA warns.

As of July 1, the CRA had yet to assess the 2019 tax files of some two million CCB and GST/HST credit recipients, Daniels tells Global News. That’s approximately 13 per cent of the 15 million Canadians who were eligible for those benefits based on their 2018 returns, she adds.

Daniels urges Canadians who haven’t done so yet to file their 2019 taxes electronically and sign up for direct deposit to ensure faster processing of tax refunds and avoid any interruption in benefit payments.

I do worry that if people wait until the end of August to file — and they file on paper — there may be an issue,” she says.

In mid-May, the CRA warned of the probability of “significant delays” for paper filers due to “reduced staff onsite to support physical distancing.” Currently, however, CRA tax centres are working “at full capacity” processing paper returns, according to Daniels.

Source: Erica Alini,  Global News July 21st, 2020.


Events & Sponsorship

Toronto Entrepreneurs Conference @ Mississauga

May 08, 2019 Our B.E.S.T. (Business Entrepreneurs Services Team) Group has participated in this event for first time. Toronto Entrepreneurs Conference and Trade Show is the largest Entrepreneurs event in Canada. The event which targets business owners, partners or...

Hispanic Fiesta 2018

September 04, 2018 RGB Accounting will participate in this event for a second year in a row. Hispanic Fiesta will be held at Mel Lastman Square in Toronto during the Labour Day Weekend, August 31st, Sept. 1, 2, & 3, 2018. Hispanic Fiesta is a four-day celebration...

Secure Your Future Seminar 2018

June 20, 2018 This event gathered business owners running a small or medium-sized business, self-employed and incorporated businesses willing to learn tax saving strategies to help them utilize their company assets to secure their retirement. We are proud of having...

2nd Latino Business Expo Show

May 19, 2018 The 2nd Latino Business Expo Show held on May 19th at Daniels Spectrum gathered a wide range of entrepreneurs and business owners avid to learn how to take their businesses to the next level. RGB Accounting participated as vendor and speaker at this...

Hispanic Fiesta 2017

September 04, 2017 Hispanic Fiesta, a celebration of Spanish and Latin-American: Arts, Food, Music and Entertainment, is a four-day celebration filled with the splendid sounds, tempting treats and colorful culture featuring 300 local, national and International...

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