COVID-19: New tax filing extensions and relief

New extended tax return filing deadlines have recently been announced by the CRA, Revenu Quebec and Alberta Tax and Revenue Administration (TRA). Under these extensions, certain trusts and corporations with tax returns otherwise due in June, July or August 2020, may now file those returns by September 1, 2020. The CRA has also announced a broader extension to September 1, 2020 of most information returns, elections, designations and information requests otherwise due in June, July or August 2020. The CRA and Revenu Quebec have also announced new interest and penalty relief for certain individuals and trusts who are unable to file their 2019 personal tax returns on time.

Notably, individual filers should remember that no further extensions to the June 1, 2020 deadline for filing personal income tax returns for the 2019 taxation year have been announced by either the CRA or Revenu Quebec, and the June 15, 2020 filing deadline for self-employed individuals has likewise not been extended further. However, both tax authorities now say that they will not assess interest or late-filing penalties for taxpayers who file their tax returns and pay their taxes owing by September 1, 2020.

Late-filing penalty relief for individuals

Personal tax return deadline reminder

There are no changes to the filing deadline for 2019 personal tax returns, which was previously extended to June 1, 2020. There have also been no changes to the June 15, 2020 filing deadline for self-employed individuals and their spouses.

Interest and penalty relief

The CRA announced it will not assess interest and penalties (including late-filing penalties) for individuals who have filed their tax return and paid their related taxes by September 1, 2020. The CRA will similarly waive penalties or applicable interest related to Form T1135, “Foreign Income Verification Statement”, and any elections, forms and schedules that must be filed with the return, provided they are filed by September 1, 2020.

Quebec — Personal tax return deadline reminder & relief

Like the CRA, Revenu Quebec has not announced an additional extension to the filing deadline for 2019 personal tax returns, which continues to be June 1, 2020 (June 15, 2020 for self-employed individuals and their spouses). However, Revenu Quebec has clarified that because the deadline for payment of taxes has been extended to September 1 2020, taxpayers will not be charged a late-filing penalty if their return is filed by September 1, 2020.

Extended filing deadlines for corporations

Filing due date for corporate tax returns

The newly extended filing due date for corporate tax returns is September 1, 2020, for corporate tax returns that would otherwise have a filing due date in June, July or August, 2020. This extension applies for all purposes, including any elections, forms and schedules that must be filed with the corporate return, Form T1135 and Form T106, “Information Return of Non-Arm’s Length Transactions with Non-Residents”.

Quebec — Corporate income tax return filing deadline

The newly extended filing deadline for taxpayers with Quebec corporate income tax return (CO-17) filing obligations is September 1, 2020, applicable to corporations whose taxation year ended between November 30, 2019 and February 29, 2020, who would otherwise file from June 1, 2020 to August 31, 2020.

Alberta — Corporate income tax return filing deadline

For corporate taxpayers with filing obligations in Alberta, the province has also extended the filing deadline for the Alberta Corporate Return (AT1) to September 1, 2020 for AT1s that would otherwise have a filing deadline in June, July or August, 2020.

Extended filing deadline for trusts

Extension to September 1 for trusts with June, July or August deadlines

An extended September 1, 2020 deadline is now available to trusts that would otherwise have a filing due date in June, July or August 2020 for their trust information and tax returns. Previously, the CRA had provided filing extensions to either May 1, 2020 or June 1, 2020, depending on the original filing due-date of the particular trust. The CRA notes that trusts will not be subject to penalties and interest if returns are filed and payments are made by September 1, 2020. This interest and penalty relief also applies to Form T1135 and any elections, forms and schedules that must be filed with the return, provided they are filed by September 1, 2020.

Quebec — Extended information return and income tax deadlines

Similarly, Revenu Quebec has extended the information return and income tax filing deadlines for trusts to September 1, 2020, for trusts whose taxation year ended between March 2, 2020 and May 31, 2020.

Quebec also announced that it will extend to September 1, 2020, the payment of any tax balance payable, including instalments, by a trust for its taxation year ended during the 2020 calendar year, which would otherwise be payable before September 1, 2020. Previously, Quebec had only provided an extension to September 1, 2020 in respect of a trust’s tax and instalment balances for the 2019 taxation year, that would have been payable between March 17, 2020 and August 31, 2020.

Partnership information returns

Filing due date for partnership information returns

The CRA announced that the extended September 1, 2020 filing deadline also applies to most other information returns that would have otherwise been due in June, July or August 2020.

Quebec — Extended partnership information return deadlines

Revenu Quebec specifically extended the filing deadline for partnership information returns to September 1, 2020 for partnerships that normally have a filing deadline between May 31, 2020 and August 31, 2020.

Other information returns, elections, designations and information requests

The CRA announced that the extended September 1, 2020 filing deadline also applies to other information returns, elections, designations and information requests due in June, July or August, 2020 (unless otherwise noted). The CRA says that penalties and interest will not be applied if information returns, elections, designations, and information requests are filed and payments are made by September 1, 2020.

We can help

Do not hesitate to contact your trusted LCA advisor. We can help you assess how COVID-19 may affect your tax obligations.