Thousands of Canadian individuals and businesses remain under collection action by the Canada Revenue Agency (“CRA”). Several tax filing deadlines have been extended to allow taxpayers to cope with loss in revenue due to the ongoing COVID-19 pandemic. The following are important tax filing changes that can be found on the CRA website, but have been summarized here:
1. The personal tax filing deadline for the 2019 tax season has been extended to June 1, 2020.
2. Trust filing deadlines have been extended to May 1, 2020.
3. Businesses may defer income amounts without interest and penalties until after August 31, 2020.
4. The CRA has suspended the initiation of audits for four weeks, starting March 18, 2020 and has suspended ongoing audits for the same time.
Objections, Appeals and Taxpayer relief
Objections relating to entitlements and benefits have been prioritized as a critical service during the COVID-19 pandemic. The CRA has stated that there should not be any delays. If you are currently the subject of a collection action by the CRA, please feel free to contact our office to speak with a tax lawyer who can assist you in your dispute.
Objections relating to other tax matters, both corporate and individual, are being held in abeyance. No collection action will be taken on these accounts at this time.
For the Tax Court of Canada (“TCC”), the TCC has ordered an extension of all timelines prescribed by the rules while it is closed. If you are a taxpayer debating their TCC options, please contact Spiteri & Ursulak LLP and speak to an experienced tax litigation lawyer.
Taxpayers who are unable to file a return or make payments on taxes owing due to the COVID-19 pandemic can apply for relief from interest and penalties. Taxpayer Relief applications are currently being prioritized based on COVID-19 issues.
If you have questions or concerns about your CRA dispute matters or if you want to appeal to the TCC, contact Spiteri & Ursulak LLP to speak with an experienced tax lawyer. We would be delighted to assist you.
**This information is not intended as nor does it constitute tax or legal advice. The information contained herein has been obtained from sources believed to be reliable at the time obtained, but neither Spiteri & Ursulak LLP nor its employees, agents, or information suppliers can guarantee its accuracy or completeness after the date of April 2, 2020.
