AF Accounting helps individuals and small businesses better understand the many benefit programs available from the Federal Government during the COVID-19 pandemic. Part 1 looked at the Canada Emergency Response Benefit (CERB). Part 2 discussed the Canada Emergency Business Account (CEBA). Now it’s time to explore your options with the extended tax deadlines.
Why are the deadlines extended?
Filing deadlines have been extended across the board for individuals, SMEs, corporations, and trusts. Many Canadians and companies find themselves owing during tax season – a season that has collided with the pandemic. With businesses closed and incomes compromised, the Government of Canada is delaying deadlines so individuals and businesses can focus on the present, retain some cash, and have more time to do the paperwork necessary for filing.
What are the new deadlines?
Not every deadline has been extended. The changes are as follows. All dates are for 2020 and deadlines that have not changed are indicated.
- Individuals: File by June 1, pay by September 1
- Self-employed: File by June 15 (unchanged), pay by September 1
- Corporations: File by June 1, pay by September 1
- Trusts: File by May 1 if the tax year ends on December 31. File by June 1 if the tax year ends in April or May. Pay by September 1
- Charities: File by December 31. Payment not applicable (unchanged)
- NR4 (Part XIII non-resident taxes): File by May 1. Pay by the 15 of each month (unchanged)
- Payroll remittance: unchanged
Should I delay filing?
The new deadlines are designed to support those that need extra time to file or to save up their remittance. If you have the ability to file and pay now, you should do so.
What happens if I ignore the deadlines?
Failure to file on time, even with the extensions, results in fines and penalties. Remember, the penalties escalate. If you start to accrue interest and compound interest on your outstanding amounts, your fines grow quickly.
How AF Accounting helps
We understand that this is a trying time for you and your business. We have a number of strategies that align with Canada Revenue Agency’s (CRA) new deadlines.
If you think you owe money
We will complete your paperwork now and validate if you owe money or will be receiving a return. If you owe, we can hold off on filing your paperwork until the appropriate deadlines.
If you think you will be getting a return
File now. We can complete your paperwork and file the documents on your behalf. With the new relief programs rolled out, CRA is overburdened and is unable to respond to questions in a timely manner. Using an accountant is a faster way to complete your filing properly and to get your return as promptly as possible. We can answer questions and ensure the right documents are completed and filed on time.
What if I refuse to file?
Not only is refusing to file illegal, it will also exclude you from getting the benefits you need under programs like child benefits, GST credits, etc.
Start the process today
Whether or not you expect to owe this tax season, contact us now to start the filing process. Together we will determine if you should file now or hold off until the extended deadline. Do not overlook filing, as that always results in fines, penalties, and headaches down the road.
Contact us to learn more.