You will not be charged late-filing penalties or interest if your 2019 individual (T1) income tax returns are filed and payments are made prior to September 1, 2020. However, we are preserving the June 1 filing deadline for T1 individuals, and the June 15 filing deadline for T1 self-employed individuals (sole-proprietors), in order to encourage filing returns in time to accurately calculate benefits, which rely on 2019 tax returns for entitlement calculation.
If the 2019 tax return is not assessed in time, benefits and/or credits for the July to September 2020 payments will be based on information from 2018 tax returns. Once the 2019 return is filed, it is possible that the CRA will make adjustments based on the updated income information.
Penalties and interest relief for extended deadlines
Penalties and interest will not be charged if payments are made by the extended deadlines of September 1, 2020. This includes the late-filing penalty as long as the return is filed by September 1, 2020. Penalties and interest relief will be considered on a case-by-case basis for income tax balances that are not listed above.
There have been equivalent extensions to filing deadlines for certain corporations and trusts as of May 22, 2020. These extensions generally align with the September 1, 2020 payment deadline previously established.
Some taxpayers may have received a Notice of Assessment that says the deadline for payment is April 30, 2020, which is incorrect.
On May 15, it was
that eligible Canadians who are presently receiving the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit and/or Canada child benefit (CCB) payments will continue to receive these payments until the end of September 2020. Benefit payments starting in July 2020 and those scheduled for August and September won’t be interrupted.
Due to the change in the tax deadline from April 30 to June 1, 2020, we expect many will need to take advantage of the extended deadline. Therefore, if the 2019 tax return is not assessed, and to allow time to calculate benefits and/or credits for the July to September 2020 payments, payment amounts will be based on information from 2018 tax returns.
If you receive an estimated benefit and/or credit payment based on your 2018 tax return(s), you’re still required to file your 2019 income tax return.
If we’re unable to assess your return by early September 2020, your estimated benefits and/or credits will stop in October 2020 and you’ll have to repay the estimated amounts that were issued to you starting in July 2020.