Tax Measures Under Canada’s COVID-19 Economic Response Plan

The Charities Directorate implemented the following measures:

  • The filing deadline for all charities with a Form T3010, Registered Charity Information Return, due between March 18, 2020, and December 31, 2020 is postponed to December 31, 2020.
  • Starting in September[73], the Charities Directorate will begin contacting charities to resume ongoing charity audits, begin CEWS post-payment audits, and begin new audits to address highest risk areas.
  • Starting in September[74], the Charities Directorate will begin processing revocations for failure to comply with the requirements of charity registration.

Deferral of the GST/HST Remittance and Customs Duty Payments

GST/HST Remittance Deferral

On June 29, 2020[75], the Government of Canada confirmed that businesses[76] must make GST/HST payments or remittances that became due on or after March 27, 2020, and before July 1, 2020, and file these returns by June 30, 2020. Interest will begin to apply to outstanding remittances and payments, and penalties will begin to apply to outstanding returns, effective July 1, 2020.

Businesses that continue to experience difficulty in making a GST/HST remittance or payment or filing a GST/HST return can contact the CRA to request for the cancellation or waiver of penalties and interest, and/or for a flexible payment arrangement.

Interest on existing tax debts related to GST/HST returns from April 1, 2020, to June 30, 2020, will be waived[77]. Penalties and interest assessed on the taxpayer’s account prior to this period will not be cancelled.

Starting in October[78], the GST/HST Delinquent Filer program will begin, which will hold refunds on non-compliant GST/HST registrants, and address chronic and high-risk delinquent filers.

Deferral of Customs Duty and GST for Importers

In a commercial goods importation context, payments owing for customs duties and GST at a rate of 5% on imports are generally due before the first day of the month following the month in which the statements of accounts are issued to the importers of commercial goods. The Government of Canada has also announced that payment deadlines for statements of accounts for March, April, and May are deferred to June 30, 2020. On June 29, 2020[79], the Government of Canada also confirmed that the customs duty payment deferral was ending as planned on June 30, 2020.

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