This is a thought leadership article by PrimeGlobal member firm Shimmerman Penn which looks at the CRA payment deadline. 

On July 27, 2020, CRA announced further extensions of tax payment due dates, from September 1, 2020 to September 30, 2020, for individual, corporation and trust income tax returns. This applies to any income tax balance due on or after March 18 and before September 30, 2020.

This extension to September 30, 2020 also applies to all tax instalment payments that were previously due by September 1, 2020, as well as the September 15, 2020 personal tax instalment.

The previously extended filing due dates for individual, corporation and trust income tax returns remain unchanged.

CRA also announced that 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.

CRA will also be 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/HST returns.

For further details, please see CRA’s release regarding revised income tax filing and payment deadlines.

It is possible that the late filing penalty relief may be more generous than noted above as the press release includes the statement “the CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late as long as it is filed by September 30”. This broad sentence does not specify when payment needs to be made or define “current year return”, but it would be prudent to ensure you file and pay by September 30 to be clearly within the stated parameters.

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Shimmerman Penn LLP

Shimmerman Penn is much more than an accounting firm. We are trusted advisors to our clients, offering a full range of financial, taxation and business advisory services. With niche experience in a variety of industries, we bring more than 30 years' experience to understanding their businesses and unique requirements. Through our membership in PrimeGlobal, we offer our clients international reach combined with the personal approach of a mid-sized, Toronto firm.

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