The federal government has announced that Canadians will have extra time to file and pay their taxes this year.
In response to the COVID-19 pandemic, the tax filing date has been postponed to June 1 for individuals. The deadline for trusts has been moved to May 1.
The Canada Revenue Agency is also allowing citizens to defer their income tax payments until August 31 and before September with no interest or penalties.
To eliminate the need to meet in person, the CRA will recognize electronic signatures on authorization forms T183 or T183CORP.
Moreover, the agency will provide phone-call and webinars services as part of its Outreach Program to provide Canadians with relevant information about tax obligations as well as available benefits and credits.
Along with its actions to help individuals, the CRA is also implementing measures to assist businesses, allowing them to defer their payments until August 31 with no penalties or interest. The agency said it will not contact any small or medium business for post-assessment GST/HST or Income Tax audits for the next four weeks. And, for the majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
These tax deferrals are a part of the Government of Canada’s COVID-19 Economic Response Plan, which will provide up to $27 billion in direct support to Canadian workers and businesses, as announced by Prime Minister Justin Trudeau last month.