On March 18, 2020, the Government announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses. Additionally, $55 billion will be used through tax deferrals to help stabilize the economy.
The Canada Revenue Agency (CRA) will allow all businesses to defer the payment of any income tax amounts that become owing on or after March 18, until after August 31, 2020. This income tax deferral includes tax balances and installments. There will be no interest or penalties accrued on these amounts during this period.
As per our communication with the CRA, we have the following information –
Filing date for current tax year for Corporate filings have been extended to June 1, 2020 which applies to corporations that would otherwise have a filing due date after March 18th and before June 1st, 2020.
All other Corporate Tax & SR&ED Filing deadlines remain unchanged.
Any In person SR&ED Audits or Corporate Tax Audits scheduled for the month of March & April will be rescheduled and the respective reviewers will be contacting clients directly for rescheduling. Some communication delays expected. CRA will generally not contact SMEs to initiate any post assessment GST/HST or Income Tax Audits for next 4 weeks. All other audits are suspended until further notice.
The CRA offices remain open as of now with limited staff. Processing returns is essential, so there are groups still processing and the claims processing department will always be working. Any claims submitted so far or that will be submitted in future will be processed. Refunds will be processed, but delays can be expected.
At EVAMAX, our team is fully functional remotely to ensure all SR&ED Claims filing deadlines are met or expedited to avoid further delays in processing expected at CRA.
We understand that everyone is dealing with the effects of COVID-19 pandemic and we are here to assist & avoid any delays in receiving these tax incentives.
More information and updates from the Government can be found at the following link:
Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses