All About Estates

Extended tax payment deadlines and interest relief on tax debt

Further tax payment deadline extensions and interest relief on tax debt are on offer by the Canada Revenue Agency (CRA) during the COVID-19 pandemic.

As announced on July 27, 2020, trusts now have until September 30, 2020, to pay income tax balances and instalments that would have otherwise been due on or after March 18, 2020 and before September 30, 2020. The CRA also says that all penalties and interest will not be applied if 2019 or 2020 trust income tax returns are filed and income tax payments are made by September 30, 2020. The payment extension also applies to Part XIII remittance requirements associated with income paid or payable to non-resident beneficiaries.

In addition to the extended tax filing and payment deadline, the CRA will waive arrears interest on existing tax debts related to trust income tax returns accumulated between April 1, 2020 and September 30, 2020.

The announcements will provide relief to executors and beneficiaries of estates who have struggled with meeting their tax obligations, both filing and balance-due payments, on account of the COVID-19 restrictions.

About Derek de Gannes
Derek A. de Gannes: Senior Director, Private Client Services of RSM Canada. RSM Canada is committed to the highest level of integrity, quality and professionalism and provides clients with solutions in the area of Audit, Tax and Transaction Services. Email: derek.degannes@rsmcanada.com

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