The Motley Fool

CRA Emergency Plan: 2 Tax Updates That Should Help You Out

Image source: Getty Images

The first significant disruption of the novel coronavirus outbreak in Canada was the tax season. Just as taxpayers were starting to prepare for their annual obligation, the health crisis broke out. Meeting the tax filing deadline on April 30, 2020 and subsequent tax payment is impossible with the change in priorities.

Health and financial dislocation became pressing concerns instead of income tax returns. Upon instructions from the federal government, the Canada Revenue Agency (CRA) promptly pushed back the tax filing and tax payment deadlines.

It’s been more two months since the CRA made the announcement, and the new deadlines are fast approaching. The filing in 2020 is for the income year 2019. For those who did not file taxes for 2018, the CRA is advising you to prioritize filing the 2018 return. Otherwise, you might deprive yourself of the help due to you.

June 1, 2020

Monday, June 1, 2020, is the new deadline to file individual and corporate income tax returns for the income year 2019. The 31-day extension from the original April 30, 2020 is sufficient to prepare.

The tax filing date for self-employed and their spouse or common-law partner did not change. The deadline is still Monday, June 15, 2020. Taxpayers should be conscientious about filing early or complying with the deadline. The CRA has taken steps to relieve taxpayers of the pressure.

September 1, 2020

Tuesday, September 1, 2020, is the new tax payment date for individual and corporate taxpayers as well the self-employed and their spouse or common-law partner. The CRA made sure that after filing the returns on June 1, 2020, taxpayers will have enough time to pay taxes owed to the government.

If you’re expecting a tax refund, file early so the CRA can process and expedite the deposit of the reimbursement. You don’t want to miss out on the key benefit programs during the pandemic.

Private-sector assistance

The private sector is also assisting taxpayers. The Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) or Scotiabank, for example, recently launched a relief program specific to Canadian businesses hurt by the COVID-19 pandemic.

The program is available to small, medium, and large entities for as long as they are business banking clients of Scotiabank. Before the launch of this latest program, Scotiabank provided financial relief by extending $20 billion in loans to over 45,000 clients.

Scotiabank’s programs will enable clients to manage cash flows and will also ensure business continuity and financial flexibility during the global health crisis. The Scotiabank Arena is now the venue for the preparation of 10,000 meals daily. Local hospital frontline workers and community agencies are the recipients.

Investors are also happy that Scotiabank is not cutting dividends. If you’re an income-investor, this bank stock is worth considering. The current price of $52.95 is a good entry point, while the dividend is a high 6.79%.

Final tip

If you’re afraid of virus transmission, the CRA recommends the online filing of tax returns. E-filing is safer because there’s no human involvement.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.