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

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.

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