August 2020 COVID-19 updates
Things keep changing fast enough to make your head spin, so here are a few important updates to keep in mind:
Updated payment deadlines – CRA
On July 27 CRA announced a further extension to the deadline for tax payments to September 30. This includes corporate and personal taxes that would have become due any time after March 18, including required installment payments. Although the personal tax filing deadline was June 1 (or June 15 for self-employed individuals), CRA has confirmed that penalties and interest will not be assessed as long as the return is filed, and taxes are paid by September 30, 2020.
As it stands at the time of this communication, if your entire tax bill is not paid by the September 30, 2020 extension and you did not file your return before the June 1 extended deadline, a late-filing penalty will apply in addition to interest on the balance.
CEWS extended (for employers)
On July 17, it was announced that the Canada Employment Wage Subsidy, which was available for employers for wages paid from March 15 to July 4, will now be extended to December 19, 2020. The calculations will change for the periods starting July 5, so keep an eye out for the new calculator provided by Canada.ca and further details as they become available.
One thing that unfortunately has not slowed down during this pandemic: fraud and criminal activity with groups who look to take advantage of people in uncertain times. Identity theft is surging – many individuals are discovering that someone else has assumed their identity and claimed the $2,000 monthly CERB benefits under their social insurance number when they did not qualify.
Our recommendation: make sure to keep anything with your SIN very secure. In addition, we strongly recommend you sign up for CRA My Account where you can monitor some of these activities with your tax account directly with CRA online. Follow the link to sign up for access.