15
Apr
With the current financial climate due to the COVID-19 pandemic, the Canada Revenue Agency (CRA) has made some changes to the deadlines of both personal and corporate taxes. If you want to avoid late fees, you need to know when your return and any payments are now due. Here is a list of some important deadlines you will not want to miss … otherwise, you may incur the wrath of the taxman
Individual Tax Returns
For individuals who are not self-employed, the deadline to submit has extended to June 1, 2020. As well, the payment date for any taxes owed has been extended to September 1, 2020. It should be noted that this new date also includes the June 15, 2020, instalment payment for those who have to pay by instalments.
Self-Employed Tax Returns
If you or your spouse/common-law partner is self-employed, the deadline to submit is still June 15, 2020. However, the payment date for any taxes owed has been extended to September 1, 2020. It should be noted that this new date also includes the June 15, 2020, instalment payment for those who have to pay by instalments.
Late-Filing Issues
If you owe tax for 2019 and you file your return for 2019 after the due date, the CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
And if you are late filing your return this could affect your benefits and support payments. As if they CRA does not receive your tax return on time the could stop the payments.
Corporate Tax Returns
The deadlines for corporate taxes are much different than personal tax deadlines. In general, corporate tax returns are due 6 months after the year-end. This is where things can get a little bit tricky, as a corporation’s year-end does not necessarily always fall on December 31st. For example, if the corporation’s year-end was on September 30, 2019, their tax return would be due March 30, 2020.
What has changed is if your return was due after March 18th and before June 1st, your deadline has been extended to June 1, 2020. As well the payment date for any taxes owed has been extended to September 1, 2020. This applies to balances and instalments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, 2020.
If your return was not due till after June 1st, there are no changes to your deadlines. Check out our previous blog post about Corporate Tax Deadlines for 2020 for more information.
If you have any questions or need further clarification about when something is due, don’t hesitate to contact Keenans Accounting Service at 705-526-7628 and we would be more then happy to assist you with all of your tax needs. We’ll keep a keen eye on your numbers so you don’t have to!