Canadian businesses to benefit from Covid-19 tax grace period
Tax relief is on the way for Canadians as the federal government announces a number of changes to the 2019 income tax filing season.
Prime Minister Justin Trudeau announced in Ottawa Wednesday that Canada Revenue Agency will be extending the filing deadline by roughly one month to June 1.
Trudeau also said Canadians who owe money on their 2019 taxes will be allowed to delay their payments without penalty or incurring interest until August 31, to make more money available for households during the COVID-19 pandemic.
“The extension of the tax filing deadline to June 1, and, in particular, the payment deadline to August 31, will provide some much needed relief for Canadian taxpayers at this difficult time,” Jamie Golombek, managing director of tax and estate planning at CIBC, told BNN Bloomberg via email.
“Canadians who are owed tax refunds for 2019, however, may still wish to file their returns electronically as soon as they are able to do so to expedite the processing of their tax refunds.”
Businesses will also get a break as they face economic uncertainty, revenue losses and tightening credit conditions.
Corporations are still required to file their income taxes six months after their fiscal year ends, but similar to the personal tax changes, businesses will be able to defer tax payments until August 31 without incurring interest or penalties.
The changes are part of a combined $82 billion stimulus package to cushion the economy against the damage done by the COVID-19 pandemic.