COVID-19 Tax Season Changes
On March 18, 2020 the Government of Canada announced a number of changes. We wanted to share these with you so that you know how they might impact you.
Personal Tax Filing Deadline
The personal tax filing deadline has been extended to June 1st.
The government is still encouraging anyone who receives government benefits, like GST/HST credits, Trillium benefits or Canada Child Benefits not to delay filing their returns to ensure no delay in receiving their benefits.
Additionally, a large part of our team that helps prepare your personal taxes is made up of co-op students who will not be available to us after April 30th. So at the moment we are planning to continue to try and work towards having everyone's personal tax returns completed by April 30th as usual.
We have not as of yet made any changes to our office operations, but are encouraging all of our clients, where possible, to share their tax documents electronically. This will allow us all to follow the guidance of social distancing as well as allow the preparation of your tax returns to continue should we have to close our office.
Payment Due Dates
The payment due date has also been extended. Personal income taxes are now not due until August 31, 2020, this also applies to personal tax instalments due on or after today and would include your June 15th 2020 personal income tax instalment should that apply to you.
Business Filings (including HST related to your personal return)
Any income taxes due on or after today can now be deferred until August 31, 2020 without any interest.
Please note that there is no mention of a change to any filing deadlines for business or corporate tax returns. For the moment we are going to continue assuming that all of these are still due on their normal filing deadlines. Also there has been no mention of any changes to when the payment of HST or employee payroll taxes are due so you should plan on continuing to make those as normally scheduled. This is perhaps another reason for many of our clients to still file their returns as usual.
Relief for Employers
There is a subsidy for employers who are eligible for the small business deduction. The amount is 10% of total remuneration paid for three months up to $1,375 per employee and up to $25,000 per employer. This will be "paid" by allowing businesses to reduce the payroll taxes sent to the government by that amount. Please get in touch with our team if you need help calculating that amount. What is uncertain at this moment is when the precise date of this subsidy will start.
We will do our very best to keep you updated as we learn more about any other changes to your tax situation. We appreciate your patience in these ever changing times, and want to assure you we will continue to be here for you (even if that "here" is virtually).