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Extension of tax payment deadlines and interest relief

Payment deadline extension

CRA is extending the payment due date for the current year individual, corporate, and trust income tax returns including instalment payments from September 1, 2020 to September 30, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the late filing penalty as long as the return is filed by September 30, 2020.

Interest on existing tax debt

CRA is also waiving interest on existing tax debts related to individual, corporate and trust income tax returns from April 1, 2020 to September 30, 2020 and from April 1, 2020 to June 30, 2020 for GST returns. While this measure for existing tax debts does not cancel penalties and interest already assessed on the taxpayer’s account prior to this period, it ensures that the taxpayer’s existing tax debt does not continue to grow through interest charges during this difficult time.

Filing returns

The previously extended filing due dates for individual, corporate, and trust income tax returns remain unchanged. CRA will not impose late filing penalties where a current year’s individual, corporation, or trust return is filed late providing that it is filed by September 30, 2020.

CRA encourages everyone to file the individual, corporate and trust returns as soon as possible, even though payment deadlines are being extended. This is particularly important for individuals receiving credits and benefits, such as the Canada Child Benefit.

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