Canadian Tax Changes For 2020 And How They Affect You
As we’re halfway through the year, there’s still a lot to understand about the new normal. 2020 was unique because it shook things up the world over, and Canada was not an exemption. Businesses have shut down and put on hold for months due to the COVID 19 pandemic, and there have been several financial impacts both on the individual level and at the economic level.
In trying to cope with the major disruption and setbacks, the government announced that the tax date, which was originally March 18, 2020, would be moved to June 1, 2020. This is meant to act as a relief measure and encourage businesses and individuals room to recover.
Additionally, a few other changes were announced because of the pandemic and otherwise.
Among them are:
Individual Tax Dates Moved
The date to apply for tax returns for the fiscal year 2019 was moved from April 30, 2020, to June 1, 2020. The date was important for people who were unable to gather adequate documentation or file due to the pandemic. Additionally, there is no late-filing penalty for filing late taxes up to September 1, 2020, which means if you haven’t had a chance to get around to it yet, it isn’t too late.
Another major advantage of paying taxes is that there has also been a deferment in due dates. Although the June 1 deadline has passed, for this year, no penalties and interest will accumulate so long as dues as cleared by September 1, 2020.
Corporate Income Tax Changes
There is no deferment for corporate income tax if there is a calendar year in place. If not, the June 1, 2020 deadline stands in place, and income tax returns can be filed up to September 1, 2020.
They are still obliged to pay income tax amounts, balances, and other payments that need to be paid by September 1, 2020, and there will be no penalties or interest accumulated till then.
This is yet another remarkable decision given the difficult circumstances, as the Canadian government commits to helping businesses regain their footing.
Audit Activities Were Deferred Too
While audit activities for small and medium businesses were also deferred and reported not required for a brief period, they have now resumed. If you’re a business or individual in need of tax advisory services in Edmonton, you can reach out to our CPA firm.
After the government’s announcement of the BPA for 2020 and onwards, there is more hope for Canadian citizens struggling as a result of income inequality. If you’re unsure about whether these tax changes and announcements affect you, we’re happy to help in any way we can.