GST Deadlines Deferred

Q1- What fiscal measures is the Canada Revenue Agency (CRA) taking to help Canadian businesses manage their GST/HST payments and remittances?

A1- The CRA understands that businesses might be dealing with difficulties in making their GST/HST payments or remittances.

The CRA will allow all businesses to defer, until the end of June 2020, any GST/HST payments or remittances that become owing on or after March 27, 2020, and before June 2020. This means that no interest will apply if your payments or remittances are made by the end of June 2020.

The deadline for businesses to file their returns is unchanged. Those who are able to, should continue to file their GST/HST returns on time reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30th.

Q2: I am an annual filer who is required to make quarterly GST/HST instalment payments. Does the announced deferral apply to instalment payments?

A2: Yes, any GST/HST instalment payments due on or after March 27, 2020, and before June 2020 can be deferred until the end of June 2020. No interest will apply if the instalment payment amounts are paid by the end of June 2020.

Q3: I am an individual with a calendar year reporting period who is not required to file my GST/HST return until June 15th. Am I still required to remit the net tax owing for my 2019 reporting period by April 30, 2020.

A3: No, the remittance of your net tax can be deferred until the end of June 2020. No interest will apply if the net tax is remitted by the end of June 2020.

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Tax Filing and Payment Deadlines Extended

Income tax filing and payment dates: CRA and COVID-19

Penalties and interest will not be charged if the deferred payment requirements are met by September 1, 2020. Penalties and interest relief will be considered on a case-by-case basis for income tax balances that are not covered by the COVID-19 relief provisions described below.

 Filing date for 2019 tax yearJune 1, 2020 extended
 Payment date for 2019 tax yearSeptember 1, 2020 extendedIncludes the June 15, 2020, instalment payment for those who have to pay by instalments.
 Filing date for 2019 tax yearJune 15, 2020 unchanged
 Payment date for 2019 tax yearSeptember 1, 2020 extendedIncludes the June 15, 2020, instalment payment for those who have to pay by instalments.
 Filing date for current tax yearJune 1, 2020 extended
Applies to corporations that would otherwise have a filing due date after March 18 and before June 1, 2020.
 Payment date for current tax yearSeptember 1, 2020 extended
Applies to balances and instalments under Part 1 of the Income Tax Act due on or after March, 18 and before September 1, 2020.
 Filing date for current tax year (including the associated T3 information return)May 1, 2020 extended
Applies to trusts with a tax year end date of December 31, 2019June 1, 2020 extended
Applies to trusts that would otherwise have a filing due date in April or May.
 Payment date for current tax yearSeptember 1, 2020 extended
Applies to income tax balances and instalments due on or after March 18 and before September 1, 2020
 Filing dateDecember 31, 2020 extended
Applies to charities with Form T3010 due between March 18, 2020 and December 31, 2020
 Payment dateNot Applicable
 Filing date for the 2019 NR4 information returnMay 1, 2020 extended
 Payment dateThe 15th of each month following an amount paid or credited by residents of Canada to non-resident persons. unchanged
 Payment dateSee Payroll page for filing deadlines. unchanged
 Filing date for the 2019 T5013 Partnership Information ReturnMay 1, 2020 extended
 Filing date for the 2019 NR4, Statement of Amounts Paid or Credited to Non-Residents of Canada information returnMay 1, 2020 extended
 Other information returnsJune 1, 2020 extended
Applies to other information returns that would otherwise be due after March 18, 2020, and before June 2020.

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CRA announces support to businesses

Support to Businesses

Avoiding layoffs

Extending the Work-Sharing program

We are extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.

Apply to the Work-Sharing program

The Canada Emergency Wage Subsidy

We have proposed the new Canada Emergency Wage Subsidy that would cover 75 per cent of salaries for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. Employers of all sizes and across all sectors of the economy would be eligible with the exception of public sector entities.

This program is designed to help employers hardest hit by the COVID-19 pandemic to keep and retain workers.

Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, 2020.

Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details on how to apply will follow soon.

More information about this measure

Access to credit

Establishing a Business Credit Availability Program

We established a Business Credit Availability Program (BCAP) to provide $65 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).

BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exportation and tourism.

This program includes:

Canada Emergency Business Account

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

Loan Guarantee for Small and Medium-Sized Enterprises

EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.

Co-Lending Program for Small and Medium-Sized Enterprises

BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.

Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.

These programs will roll out in the three weeks after March 27, and interested businesses should work with their current financial institutions.

Learn more about the Business Credit Availability Program

Support for farmers

Increasing credit available

We are supporting Farm Credit Canada by allowing an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.

Learn more

Supporting financial stability

Launching an Insured Mortgage Purchase Program

We launched an Insured Mortgage Purchase Program, in which we will purchase up to $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.

This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.

Learn more

Bank of Canada actions

The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.

Learn more

Lowering the Domestic Stability Buffer

The Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending into the economy.

More flexibility

More time to pay income taxes

We are allowing all businesses to defer, until August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act.

No interest or penalties will accumulate on these amounts during this period. 

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Deferral of Sales Tax Remittance and Customs Duty Payments

We will allow businesses, including self-employed individuals, to defer until June 30, 2020 payments of the Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owing on their imports.

The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers; the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.

For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.

These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of this month.

Support for the air transportation sector

Waiving ground lease rents

We are waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government. We are also providing comparable treatment for PortsToronto, which operates Billy Bishop Toronto City Airport and pays a charge to the federal government.

This will help these airports reduce cost pressures and preserve their cash flow as they deal with the effects of COVID-19 on their revenue streams.

Learn more