The Motley Fool

CRA Tax Relief: Pay Your Taxes Even Later Now!

Image source: Getty Images

The Canada Revenue Agency (CRA) has been in the center of things since the coronavirus outbreak in mid-March. COVID-19 came before the beginning of the 2020 tax season. Health and safety became the priorities of Canadian taxpayers, not tax filing and tax payment deadlines.

However, the government read the situation well and saw the added burden on individuals and corporations. The CRA needs to be flexible to help taxpayers meet financial obligations, including taxes owed to the government. Its prompt reaction was to extend the deadlines.

New tax payment deadline

The tax filing deadline for the income year 2019 was moved from April 30, 2020, to June 1, 2020, while taxpayers can pay tax debts on September 1, 2020. While the tax filing date has elapsed, the CRA extended the tax payment once more. The new deadline is September 30, 2020.

The CRA’s latest tax payment extension for current-year individual, corporate and trust income tax returns also applies to installment payments. Taxpayers shouldn’t worry about late-filing penalties or interest provided you file your return by September 30, 2020.

Consequences of non-filing

The CRA keeps reminding individual taxpayers to file tax returns as soon as possible. Those receiving credits and benefits such as the Canada Child Benefit (CCB) risk missing out on the payments. Your 2019 tax return will be the basis for estimating the succeeding amount of benefits or credits.

Thus, your 2019 tax return must be with the CRA by early September 2020. Otherwise, the payments will stop in October 2020. Furthermore, you will have to repay the amounts issued to you by the CRA as of July 2020.

Financial reward

Tax reliefs are welcome, but you’ll get more financial rewards through growth stocks like Jamieson Wellness (TSX:JWEL). This $1.43 billion company that manufactures and sells natural health products are getting positive reviews from market analysts. The consumer-defensive is outperforming the general market in consonance with its brisk sales.

The shares of Jamieson Wellness are gaining by 41.35% year-to-date. Had you invested $10,000 on December 31, 2019, your money would be worth $14,125 in the present. Since the stock pays a 1.38% dividend, you get an extra boost of 195%. Analysts forecast the price to climb by another 19.14% in the next 12 months.

Since 2018, the top and bottom lines are increasing. The company is on track to post a banner year to 2020. In Q2 2020 (quarter ended June 30, 2020), revenue and net income grew by 15.6% and 25.1% versus the same period in 2019. The revenue growth from the Jamieson Brands alone was 22.2%.

Jamieson’s strong momentum should carry on towards the end of the year and beyond. The company’s position is unique because the world is extra conscious now about health and wellness. Management is expecting up to 12% and 50% growth in the domestic and international markets.

Big deal

Treat the CRA’s tax relief as a big deal since you’ll seldom see a compassionate and lenient tax agency. Do your duty as a taxpayer by filing your 2019 tax return and complying with the tax payment deadline. You have more to lose if you miss out on the benefits and credits.

Speaking of CRA's new tax payment deadline...

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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.

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.