Reminder: Monday is the extended deadline day for filing 2019 tax returns

TORONTO — While Monday is the extended deadline for Canadians to file their taxes, it is not their last chance.

June 1 is the deadline for Canadians to file their 2019 tax returns, except for self-employed individuals and their spouses, who have until June 15 to file. However, those who do not file on time won’t be hit with a penalty as long as they file before Sept. 1.

All payments are due Sept. 1.

The Canada Revenue Agency (CRA) extended the normal April 30 filing deadline back in March as part of the initial COVID-19 relief measures.

The CRA further extended some of the filing deadlines for corporations and trusts last week in a move to help businesses and tax preparers cope with the economic fallout of the pandemic.

The agency said it will allow businesses to defer T2 corporation income tax returns otherwise due in June, July or August, to Sept. 1 without any interest or penalties. Any income tax balance due on or after March 18 and before Sept. 1 will also be due by Sept. 1.

In addition, the CRA says any penalties and interest in respect of amounts owed will not be charged if payments are made by Sept. 1. This includes the late-filing penalty, as long as the return was filed by Sept. 1. However, if returns are not filed by June 1, 2018 tax year information will be used to calculate provincial and federal benefits payments – meaning some of that money might be owed back once the 2019 return is processed.

In order to prevent taxpayers and tax-preparers from meeting in person during the pandemic, the CRA will recognize electronic signatures for authorization forms T183 or T183CORP, both of which are normally required to be signed by hand.

The government’s Outreach Program, which provides people with information on their tax obligations and available benefits and credits, is also available over the phone and through webinars.

The tax deferrals are part of the federal government’s wider COVID-19 Economic Response Plan, which includes $27 billion in direct assistance to Canadian workers and families, as well as making $55 billion available in liquidity to businesses to help stabilize the economy.

COVID-19 benefits will not be factored into this year's return. However, benefits for individuals and businesses, including the Canada Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy (CEWS), are taxable income and will be part of next year’s return.