On March 18, 2020, the Federal Government of Canada announced several measures, including extending the filing deadline for 2019 personal tax returns to June 1, 2020, and that any outstanding taxes owed are to be paid by August 31, 2020, without interest or penalties.
So the question arises: Should you delay filing your tax return?
Our recommendation is that you file as normal.
Here are some items to consider:
- No interest or penalties will accumulate on balances owing up until August 31, 2020.
- If you wait to file until the deadline of June 1, 2020, your entitlement for GST and the Child Tax Benefit will not be calculated correctly. So to ensure that your benefit is calculated correctly for the 2020-2021 year we recommend that you file by April 30, 2020.
- If you are expecting a tax refund, the earlier you file the earlier you will get your refund.
As COVID 19 is changing our financial landscape, we at ENT CPAs are proactively working with our clients to ensure that the best decisions are made case by case.
Stay Healthy, practice social distancing.
Rai B. Nandan FCPA, FCGA, TEP, CFP, ACCA (UK), CKA