CRA announced a one-year waiver to April 30, 2022 of interest on taxes payable for the 2020 tax year for individuals who meet the following conditions:
- have total taxable income of $75,000 or less in 2020; and
- have received COVID-19 support benefits in 2020
If you meet the conditions noted above, this waiver gives the taxpayer the option to wait until April 30, 2022 to pay their 2020 personal taxes. Consideration should be given to paying the balance owing early from a cash management perspective. The relief will be automatically applied. In addition, where such individuals are receiving benefits like the GST/HST credit or Canada child benefit, CRA will not apply these benefits against the individual’s 2020 tax balance owing.
Please note that your income tax return filling due date is April 30, 2021 and if you file your income tax return late and you have a balance owing, you will be subject to late filling penalties. The waiver only applies to the interest on the income tax balance owing.
The information in this publication is current as of March 12, 2021.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Gregory, Harriman & Associates LLP to discuss these matters in the context of your particular circumstances. Gregory, Harriman & Associates LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.