How Can the Next Two Weeks Reduce Your Tax Burden?

How Can the Next Two Weeks Reduce Your Tax Burden?

As part of the federal response to this unprecedented pandemic, while everyone is reeling from all the changes in our world, Canada Revenue Agency (CRA) has further extended the deadline for income tax returns and installment payments until September 30th. This includes waiving debt interest for the past 6 months.

It’s an unusual move, reflecting the government’s understanding that—while dealing with all the other issues, closings, family worries, and other stresses—many Canadians have not been able to focus on remitting their taxes.

The extension gives everyone a bit more breathing room. There will be no late filing penalty or extra interest charged, provided you file by the deadline. So, take that breather; then build your financial literacy with strategies you can use right now, and into the future.

See what additional tax planning you might be able to fit in.

Here are two ideas: during this extension period, investigate opportunities to claim additional tax credits; or perhaps do some short term, high yield investing with the money you haven’t yet remitted and the interest you are saving.

During this extension period, CRA is waiving arrears interest for existing tax debt on personal, corporation and trust tax accounts. This includes self-employed individuals and their spouses’ returns, and the attendant administrative documents which would normally be filed with an income tax return such as designations, information returns, elections, and information requests.

The interest grace period for your tax debt extends from April 1 to September 30, 2020. For GST/HST owed, there also was an interest grace period from April 1 to June 30, 2020.

If you are a business owner. Your tax situation may be changing. Use this grace period to take stock, and plan. Changes in cash flow, abnormal losses, additional costs to protect employees’ safety and welfare, or operating expenses related to accommodating Covid-related safety guidelines, are all factors you can consider.

It’s great the feds have realized the stress we are all experiencing. But it could be an opportunity as well. To learn more about this grace period, and how you might turn it to your advantage, give us a call.

28 thoughts on “How Can the Next Two Weeks Reduce Your Tax Burden?

  1. gate io vs bitmart says:

    Thank you for this very informative article. The public need to wake up to what is actually happening worldwide. This confirms my decision not to have the vaccineI myself reached the conclusion that deaths are being CREATED by the lockdown measures, just by reasoning.When people are locked up/ down they will smoke more cigarettes, drink more alcohol, suffer more stress, take less exercise, eat more food, commit suicide more.This is obvious.A comparison with death rates in prisons might reveal why there are excess deaths. Thanks for a superb article.Keep it up!

  2. глаз бога бот says:

    Hey there terrific blog! Does running a blog like this take a lot of work? I have virtually no expertise in computer programming but I was hoping to start my own blog soon. Anyway, if you have any recommendations or tips for new blog owners please share. I know this is off topic nevertheless I just had to ask. Thank you!

  3. hot fiesta слот says:

    Unquestionably consider that that you stated. Your favourite justification appeared to be at the internet the simplest thing to keep in mind of. I say to you, I definitely get irked whilst folks consider concerns that they plainly do not realize about. You controlled to hit the nail upon the top as smartlyand also defined out the whole thing with no need side effect , folks can take a signal. Will likely be back to get more. Thank you

  4. Теннис онлайн says:

    Hey there just wanted to give you a quick heads up and let you know a few of the images aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  5. theguardian.com says:

    I was extremely pleased to find this website. I wanted to thank you for your time just for this wonderful read!! I definitely loved every little bit of it and I have you bookmarked to see new things on your web site.

  6. Elite Jerseys says:

    263598 164151I want to thank you for the outstanding post!! I undoubtedly liked every bit of it. Ive bookmarked your web site so I can take a appear at the latest articles you post later on. 495948

  7. Shotguns for sale says:

    404406 220537 An interesting discussion is worth comment. I feel which you need to write far more on this subject, it may not be a taboo subject but typically people are not enough to speak on such topics. To the next. Cheers 871070

Leave a Reply

Your email address will not be published. Required fields are marked *