Tax Measures Under Canada’s COVID-19 Economic Response Plan

On December 2, 2020, the government introduced Bill C-14[57] which includes measures that would:

  • introduce a temporary and immediate support for low- and middle-income families who are entitled to the Canada Child Benefit, totaling up to $1,200 in 2021 for each child under the age of six;
  • ease the financial burden of student debt for up to 1.4 million Canadians by eliminating the interest on repayment of the federal portion of the Canada Student Loans and Canada Apprentice Loans for one year (2021-2022);

Flexibility for Taxpayers

The CRA deferred the filing due date for 2019 tax returns as follows:

  • for corporations:
    • June 1, 2020, for T2 returns with a filing deadline after March 18, 2020, and before May 31, 2020, and
    • September 1, 2020, for T2 returns with a filing deadline between May 31 and August 31, 2020;
  • for individuals (other than trusts): June 1, 2020 (from April 30, 2020);
  • for trusts:
    • May 1, 2020 (from March 31, 2020) for those having a taxation year ending on December 31, 2019,
    • June 1, 2020, for those with a filing due date after March 30, 2020, and before May 31, 2020, and
    • September 1, 2020, for returns that would otherwise have a filing due date between May 31 and August 31, 2020;
  • for non-residents:
    • May 1, 2020, for NR4 information returns under Part XIII;
    • September 1, 2020, non-resident individuals electing under section 216(4) who would otherwise have a filing deadline on May 31, or in June, July, or August 2020; and for on-resident taxpayers electing under section 217 who would otherwise have a filing deadline of June 30, 2020;
    • June 1, 2020, for non-resident corporations electing under section 216(4) that would otherwise have a filing deadline after March 18 and before May 31, 2020; and
  • for information returns, elections, designations and information requests:
    • September 1, 2020, for 2019 information returns under Part XVIII and Part XIX of the Income Tax Act; information returns, elections, designations and information requests that would have been due on May 31, or in June, July, or August 2020; and T5013 Partnership Information Return (“T5013 Return”) for partnerships that normally have a filing deadline on May 31, or in June, July, or August 2020.
    • June 1, 2020, for T5013 Returns for partnerships that normally have a filing deadline after March 31 and before May 31, 2020; and other information returns, elections, designations and information requests that would have been due after March 18 and before May 31, 2020;
    • May 1, 2020, for T5013 Returns for partnerships that normally have a March 31 filing deadline; and the 2019 NR4, Statement of Amounts Paid or Credited to Non-Residents of Canada information return.

The CRA has indicated[58] that no late-filing penalties will be applied to personal, corporate, and trust income tax returns filed on or before September 30, 2020. However, the CRA encourages individuals, corporations, and trusts to file their tax returns as soon as possible.

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