The ‘Taxing’ Challenges of COVID-19

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Tax Update for 2019 Personal and Trust Income Tax Filings and Payments

In response to the global pandemic, the Government of Canada released an Economic Response Plan, which includes a variety of measures to ease the financial impact Canadians are facing during this difficult time. The action items include an extension of the filing deadline for personal and trust income tax returns and a deferral of income tax payments.

For individuals, the filing deadline for 2019 personal income tax returns has been extended to June 1, 2020 (from April 30, 2020). The filing extension is applicable for Ontario and Quebec taxpayers. Individuals expecting an income tax refund, or those who are entitled to receive certain government benefits, are still encouraged to file their 2019 tax return early.

The filing deadline for Trusts with a December 31, 2019 year-end has been extended to May 1, 2020 (from March 31, 2020).

All taxpayers that have outstanding income tax payments, including income tax installments, due on or after March 18, 2020 and before September 2020, now have until after August 31, 2020 to remit these amounts to the Canada Revenue Agency (CRA) and/or Revenu Québec.

The filing deadline extensions above are applicable to taxpayers reporting income from employment, investment income (dividends, interest, rents, etc., and capital gains), and other income. Self-employed individuals still have until June 15, 2020 to file their 2019 income tax return, but they are eligible for the above extended payment deadlines. The federal government has also deferred any GST/HST remittances due in March, April and/or May 2020 to June 30, 2020.

No interest or penalties will accumulate on balances owed to the CRA or Revenu Québec during this period of deferral.

We will continue to update you as the situation evolves. Do not hesitate to contact your Pembroke Private Wealth Management representative if would like to discuss your holdings and performance.

Publication Date: March 30, 2020

This information has been prepared for informational purposes only and has been produced as a service to our clients. This material is not intended to be a substitute for professional tax or legal advice. No action should be initiated without consulting your advisors.