2020 was a challenging year for a number of reasons, and to meet its challenges head on and to keep the economy functioning relatively smoothly, the CRA took specific measures. One of those measures was to delay the tax deadline. Instead of the usual end-of-April filing deadline, Canadians had till June to file and till the end of September to pay their taxes online.
This allowed individuals and businesses to get their financial affairs in order to find enough money to pay off their financial obligation to the government. It was a much-needed relief to Canadian taxpayers at the time.
But will it happen again in 2021?
2021 tax deadlines
Since no change has been announced yet, we can assume that people would have to file their taxes as usual by the end of April. One of the reasons why many people thought that the tax deadline would be moved again was that with the previously moved deadline and the current unmoved deadline, the difference between two subsequent filings would be reduced from the usual 12 months.
A flaw in this reason is that it would turn into a perpetuating cycle. Predictable tax-filing and -payment deadlines are beneficial for the CRA as well as the taxpayers. Employed and self-employed individuals and businesses all fall into a tax routine that becomes easier to follow over time and make managing finances significantly more manageable. It also makes it easy for people to track and claim deductions.
An evergreen tax deduction
The RRSP contributions are an evergreen deduction that lowers your tax bill and help you invest in your future. One stock you may consider adding to your RRSP portfolio is Lundin Mining (TSX:LUN). It’s a Toronto-based metal mining company with a geographically diverse operations portfolio — i.e., mines in North and South America and Europe. It focuses primarily on four metals: copper, zinc, gold, and nickel.
Even though gold is part of the company’s asset portfolio, its share price isn’t affected as much by the prices of gold as gold mining companies’ price does. Its revenues have fluctuated in the past, but for the last two years, they have grown quite steadily. The stock has been on a tear since the market crash and has grown over 176% since its worst valuation in March.
It also pays dividends, but the yield of 1.25% isn’t very enticing.
Whether or not the tax deadline changes, it’s prudent to plan under the assumption that it won’t so you’d have everything ready on time. Even if the deadline is moved, you can file your taxes on the routine schedule, which will help you stay organized for the next year as well. Delaying till the last possible moment in anticipation of another delay might invite disaster and some a CRA fine.
Speaking of the tax deadline in 2021...
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Fool contributor Adam Othman has no position in any of the stocks mentioned.