COVID-19 & Taxes: Interest Waived on Existing Tax Debt

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Aside from the payment deadline extension that CRA announced recently, the CRA also announced that it will waive arrears interest on the following existing tax debts:
  • existing debts related to individual, corporation and trust income tax returns from April 1, 2020 to September 30, 2020 and
  • existing tax debts related to the goods and services tax/harmonized sales tax (GST/HST) returns from April 1, 2020 to June 30, 2020.
Please note that this will not cancel penalties and interest already assessed on a taxpayer's account prior to this period. This measure will only ensure that a taxpayer's existing debt will not grow through interest during this period when we are all dealing with the effects of the COVID-19 pandemic.

And as mentioned in the previous blog, penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020.

Source: https://www.canada.ca/en/revenue-agency.html 
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