The Canada Revenue Agency (CRA) is extending tax return filing deadlines for corporations and trusts facing deadlines over the next three months, the tax agency said Monday.
The CRA is allowing all businesses to defer T2 corporation income tax returns that would otherwise be due in June, July or August to Sept. 1. The agency is also allowing T3 trust income tax returns that would otherwise be due in June, July or August to file by Sept. 1.
“We understand the impact that the Covid-19 pandemic has had on Canadian businesses and tax preparers,” indicated the tax agency in a statement. “To support them during this difficult time, we have extended some of the filing deadlines.”
As the CRA previously announced, any income tax balance in respect of corporations and trusts due on or after March 18 and before Sep. 1 will also be due by Sept 1.
The CRA had already extended the deadline for most individuals to file their income tax returns to June 1, and the deadline to pay amounts owed to Sept. 1.
Last week, the CRA confirmed in a release that any penalties and interest in respect of amounts owed will not be charged if payments are made by Sept. 1. This included the late-filing penalty, as long as the return was filed by Sept. 1.
The agency encouraged individuals to file by the June 1 deadline to, in part, “minimize impacts to your benefit and credit payments. If your 2019 return has not been assessed by the CRA, information from your 2018 return will be used to calculate benefit and credit payments until September 2020.”
Individuals or their spouses who are self-employed continue to have a June 15 filing deadline, but the payment deadline has also been extended to Sept. 1.