Canadians will have extra time to file and pay income taxes to the Canada Revenue Agency, as the federal government looks to provide financial support for people and businesses in the midst of the coronavirus crisis.
Prime Minister Justin Trudeau unveiled an $82 billion support package on Wednesday that will provide $27 billion in direct funding, while $55 billion will be dedicated to tax deferrals for both businesses and individuals.
The deadline for individuals to file taxes has been extended from April 30 to June 1, giving people an extra month to file their returns to the CRA. The deadline to pay any income tax owed to the government will also be extended, allowing Canadians to pay it off without interest or penalties until Aug. 31.
However, the government is still encouraging people who receive benefits under the Goods and Services Tax and the Canada Child Benefit act to file returns as soon as possible to ensure their future benefits “are properly determined.” The CRA will also temporarily recognize electronic signatures as adequate when it comes to filing taxes.
“We want to make very sure that people have access to financial resources in a time of real need,” Finance Minister Bill Morneau said at a press conference on Wednesday.
“We know that people are concerned about having access to enough money for essentials, for medicine, for healthcare, for any form of food or lodging. These are critically important and so we focused our approach on having enough money delivered at the right time so people can actually deal with the issues that they are facing.”
Aaron Wudrick, federal director with the Canadian Taxpayers Federation, commended the government for pushing back the filing deadline and allowing tax deferment as a way to mitigate the economic fallout.
“It’s a recognition that tax represents a significant burden for a lot of people and businesses, and giving tax relief is also a lot simpler than trying to sort out new mechanisms to transfer money,” Wudrick said.
“Obviously it won’t cover every situation but it’s a key thing to include in any rescue package.”
All businesses will also be able to defer payments of any income tax amounts owed to the government until Aug. 31. No interest or penalties will accumulate during this time.
When it comes to small and medium businesses, the CRA said it will not initiate any post assessment GST, HST or income tax audits for the next four weeks.
“For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives,” the government said.
Source: Yahoo Finance
Newsletters
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Events & Sponsorship
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Articles & Publications
Budget 2021: What’s missing?
Budget 2021: What’s missing? The Liberal government has laid out billions in fresh spending after over two years without a federal budget — and while many of the government’s recent pledges graced its pages, others were notably absent. It’s possible some policies were...
2021 Canadian Federal Budget – Tax Initiatives
On April 19, 2021, Deputy Prime Minister and Finance Minister Chrystia Freeland tabled in the House of Commons the Liberal Government’s first federal budget in more than two years, A Recovery Plan for Jobs, Growth, and Resilience (Budget 2021). Budget 2021 contains...
What Do I Need to Open a Business Bank Account?
What Do I Need to Open a Business Bank Account? Business bank accounts help your business appear more professional to the CRA and your customers. Here's a closer look at why you may want a business bank account and how to choose the best one. Each stage of building a...
The importance of Financial Reporting
The Importance of Financial Reporting Beyond the record creation process, accountants use the information gathered for analysis and interpretation. Accountants are usually concerned with understanding the meaning of the amounts they obtain, and they look for the...
CRA Emergency Payments: 2 Massive Changes Coming
The Canada Revenue Agency (CRA) launched the Canada Emergency Response Benefit (CERB) as the flagship COVID-19 program by the Canadian government in 2020. CERB became a lifeline for Canadians who lost income due to the pandemic. The program ended on September 27,...