COVID 19 - Payments due to various Governments Agencies

COVID 19 - Payments due to various Governments Agencies

The question is: When payments are due to CRA and the Ministry of Finance (Ontario) – which ones can I delay?

Before we jump in, we must understand the meaning of “trust funds”. Trust funds mean “holding property or assets on behalf of another person.”

If you collected any funds on behalf of CRA or the Ministry of Finance they are deemed to be Trust Funds. The following deadlines remain unchanged:

CRA TRUST FUNDS

GST/HST: Due as normal

Payroll Source deductions: Due as normal

COVID 19 Initiatives.

Individuals - the deadline for filing 2019 personal income tax returns is postponed to June 1, 2020. The Canada Revenue Agency will allow all taxpayers to defer, until September 1, 2020, the payment of any income tax amounts due. No interest or penalties will accumulate on these amounts during this period. Penalties and interest will apply after September 1, 2020.

Corporations - The Canada Revenue Agency will allow all businesses to defer, until September 1, 2020, the payment of any income tax amounts due. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. Penalties and interest will apply after September 1, 2020.

Trusts - The tax return filing due date is deferred until May 1, 2020, for trusts having a December 31, 2019 year-end.

Charities – For all charities, the T3010 filing deadline is now December 31. 2020.

EHT - The Employer Health Tax exemption for 2020 increases from $490,000 to $1 million.

WSIB - The financial relief package allows businesses to defer premium reporting and payments until August 31,  2020.