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.
