18 Mar 2020
Content updated on May 28, 2020.
In light of the current measures for countering the impacts of COVID-19 (coronavirus), the governments of Québec and Canada has announced the following flexibility measures with respect to filing income tax returns.
GOVERNMENTS OF CANADA, QUEBEC & OTHER PROVINCES
- The deadline for filing income tax returns has been extended to June 1, 2020. For individuals in business, the filing deadline remains June 15, 2020. However, no late-filing penalty will be imposed if the return is filed on or before September 1, 2020. For federal purposes, this measure also applies to Form T1135 and all elections, forms and schedules to be filed with the return.
- For individuals and individuals in business, the deadline to pay balances due regarding the 2019 taxation year is extended to September 1, 2020 (federal and Quebec). This measure also applies to instalment payments due on June 15, 2020. These amounts will not be subject to interest or penalties during this period.
- For trusts with a December 31, 2019 year-end, the filing deadline for T3 and TP-646 returns has been extended to May 1, 2020.
- The filing deadline is extended to June 1, 2020 for trusts whose filing deadline would otherwise have been March 31 or April/May 2020.
- The filing deadline is extended to September 1, 2020 for trusts whose filing deadline falls within the period from June 1 to August 31, 2020.
- However, for federal purposes, no late-filing penalty will be imposed if the return (including all elections, forms and schedules to be attached) is filed on or before September 1, 2020.
- The deadline to pay any balances due regarding the 2019 tax year returns is extended to September 1, 2020 (Quebec). For federal purposes, this measure applies to any balance owing in respect of a return for which the filing deadline has been extended. For federal and Quebec purposes, payment of the instalment is also extended to September 1, 2020. These amounts will not be subject to interest or penalties during this period.
- The corporate tax return filing deadlines have been extended to June 1, 2020 for federal, Quebec and Alberta purposes, for tax returns that were due after March 18, 2020 (March 16, 2020 in Quebec) and before June 1, 2020.
- For federal and Quebec returns due in June, July and August 2020, the filing deadline is extended to September 1, 2020. For federal purposes, the deadline extension also applies to elections, forms and schedules to be attached to the return (e.g., T1135, T106).
- The payment of instalments and income tax due as of March 18, 2020 (March 17, 2020 in Quebec) has been deferred to September 1, 2020 for federal and Quebec purposes and to August 31, 2020 in Alberta.
- These measures only apply to amounts that became due as of March 18, 2020 (March 17, 2020 in Quebec). Thus, a corporation having a December 31, 2019 year-end whose tax balance became due on February 29, 2020 (two months after the end of the year) is not eligible for these measures, unlike a corporation (SME) whose tax balance becomes due on March 30, 2020.
- At the federal level, this extension applies solely to amounts due under Part I of the Income Tax Act. It does not seem to apply to taxes payable under Parts IV, IV.I and VI.I.
- In Quebec, the extension applies to the mining tax, the tax on forestry operations and the annual registration fees for the Quebec enterprise register. However, it does not apply to tax on insurance, the compensation tax for financial institutions, the corporate capital tax or the tax on capital for life insurers.
- In Quebec, the filing deadline for tax on lodging returns that were to be filed by April 30, 2020 (2020 first quarter return) has been postponed to July 31, 2020. Additionally, payments relating to returns that were to be filed as of March 27, 2020 and no later than June 1, 2020 have been postponed to July 31, 2020.
- In Quebec, the filing deadline for mining tax returns that were supposed to have been filed from March 17, 2020 to May 31, 2020 is extended to June 1, 2020, while, for returns due in June, July or August 2020, it has been extended to September 1, 2020.
- Revenu Quebec will accelerate the processing of requests for tax credits intended for businesses and tax refunds.
- The filing deadline for partnerships information returns (T5013 and TP-600) is extended from March 31, 2020 to May 1, 2020 (federal and Quebec).
- The deadline for filing registered charity information returns (T3010 and TP-985.22) that had to be filed after March 18, 2020 (after March 17, 2020 in Quebec) is extended to December 31, 2020.
NR4 INFORMATION RETURNS
- For the 2019 year, the filing deadline is postponed to May 1, 2020 However, the deadline for paying Part XIII non-resident tax (i.e. on the 15th day of each month after an amount is paid or credited by a resident of Canada to a non-resident) is unchanged.
ELECTION FORMS AND OTHER ADMINISTRATIVE OBLIGATIONS
- The deadline for other filing returns, elections, designations (including rollovers and T1134s) and responses to information requests due after March 18, 2020 (after March 16, 2020 in Quebec) is extended to June 1, 2020.
- For federal purposes, the deadline is extended to September 1, 2020 for such documents to be filed in June, July and August 2020.
- Payroll deductions and related activities must continue to be done on time (except for the reduction of payments relating to the temporary wage subsidy offered to SMEs in respect of income tax withholdings remittance on the salaries they paid and the HSF contribution credit provided by Quebec).
GST/HST, QST AND CUSTOMS DUTIES
- In the case of GST/HST and QST payments, the federal government and Quebec have extended to June 30, 2020 the time that:
- Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
- Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period;
- Annual filers, whose returns or instalments are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments in respect of the filer’s current fiscal year.
- This extension measure is also applicable to custom duty payments.
PROVINCES OTHER THAN QUÉBEC
- The payment extensions announced at the federal level will apply to provincial income tax in those provinces where the federal government collects tax, i.e. in provinces other than Québec and Alberta.
- The CRA will not contact any SME businesses to initiate any post assessment GST/HST or income tax audits until further notice. For the vast majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
- Revenu Québec is suspending all tax audit and collection activities except when a process is initiated by the taxpayer or in situations where there is a risk of fraud.
TAX COLLECTION ACTIVITIES
- CRA is suspending collection activities on new debts; collection staff will address pre-existing situations on a case-by-case basis to prevent financial hardship.
- Revenu Quebec is suspending all collection activities.
- CRA and Revenu Quebec will offer flexible payment arrangements to taxpayers.
- At the federal level, a taxpayer that is prevented from making a payment when due, filing a return on time, or otherwise complying with a tax obligation because of circumstances beyond their control, can submit a request to cancel penalties and interest.
OBJECTIONS AND APPEALS
- At the federal level, any objection related to benefits and credits identified as a critical service will continue as usual. Objections related to other tax matters filed by individuals and businesses are suspended. No collection action will be taken with respect to these accounts during this time period .
- For federal and Quebec purposes, the deadline for submitting an objection is postponed to June 30, 2002 for all objections that should otherwise have been filed between March 18, 2020 (March 14, 2020) and June 30, 2020.
- The Tax Court of Canada is closed until March 30, 2020[note de la Traduction, est-ce la bonne date, elle est passé depuis longtemps?]. All timelines prescribed for appeals are extended.
- In Quebec, the time limits for appeals are suspended from March 15, 2020 until the end of the state of health emergency.
- Revenu Québec and the CRA have confirmed that they will allow tax preparers to use an electronic signature on Electronic filing authorization forms (TP-1000.TE-V for individuals and CO-1000.TE for corporations in Quebec and Federal Form T183).
- Revenu Québec will also accept electronic signatures for Form MR-69 until September 1, 2020.
For more information, you can consult Revenu Québec’s website..