2020 Tax Updates
September 03, 2020
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2020 Tax Updates

Interest and Penalty Relief on Tax Debt, GST/HST, and Returns due to COVID

The CRA is extending the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from September 1, 2020, to September 30, 2020 – and - from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns. Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. This includes the late-filing penalty as long as the return is filed by September 30, 2020.

https://www.canada.ca/en/revenue-agency/news/2020/07/the-canada-revenue-agency-announces-an-extension-to-the-payment-deadline-and-offers-interest-relief-on-outstanding-tax-debts-during-the-covid-19-pa.html

Ontario Ministry of Finance

*Interest and Penalty Relief Extension

In August, Ontario announced certain provincial tax relief is being extended by one month, to October 1, 2020. As a result, any outstanding returns and taxes that would have been due between April 1, 2020 and August 31, 2020 (i.e., during the previously announced relief period) can now be filed by October 1, 2020, without incurring penalties or interest. On October 2, 2020, regular filing and payment activities will resume and regular penalties and interest apply. 

https://home.kpmg/ca/en/home/insights/2020/08/ontario-further-extends-interest-penalty-relief.html#:~:text=Ontario%20has%20announced%20an%20additional,interest%20and%20penalty%20relief%20period.&text=On%20October%202%2C%202020%2C%20regular,regular%20penalties%20and%20interest%20apply.

https://www.ontario.ca/page/covid-19-support-businesses#section-1

Temporary Doubling of the Employer Health Tax Exemption - In order to provide immediate financial relief to eligible employers during this time when their businesses are impacted by the COVID‑19 outbreak, the government proposes to retroactively raise the EHT exemption from $490,000 to $1 million for 2020. The exemption would return to its current level of $490,000 on January 1, 2021, and will be adjusted according to inflation again in 2024 using the Ontario Consumer Price Index.

* Also noted above, The Ontario government has extended the interest and penalty relief period by one month to October 1, 2020. The Ministry of Finance is resuming its regular audit interactions with Ontario businesses and representatives.

https://www.fin.gov.on.ca/en/tax/eht/index.html

MPAC – Postponing Planned Property Tax Reassessments - The government is postponing the planned property tax reassessment for 2021in view of the unique and unforeseen challenges that all municipalities, residents, and businesses are facing during 2020. This means that assessments for the 2021 taxation year will continue to be based on the same valuation date that was in effect for the 2020 taxation year. The Request for Reconsideration (RfR) deadline for property owners who disagree with their property assessment is usually March 31 of the applicable tax year. Due to the emergency declared by the Province of Ontario, the deadline to file a regular RfR for the 2020 property tax year is September 30, 2020.

https://www.mpac.ca/en/COVID19UpdatesourPartners

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