Canada – COVID-19: CRA Further Extends Travel Restrictions Tax-Related Relief
Canada–Tax Authority Extends Relief due to Travel Restr
Payment due dates for 2019 individual tax returns and certain other returns, as well as for instalment payments which had been set at September 1, 2020, have been further extended by Canada’s tax authority to September 30, 2020. Coronavirus-related travel restrictions may not affect the tax residency of a nonresident individual, or the ability of a cross-border employee to qualify for treaty benefits on employment income. Taxpayers whose “over-stay” situation due to the coronavirus pandemic persists past September 30 are advised to contact the tax authority.
Multinational entities and individuals can continue to rely on the Canada Revenue Agency (CRA) relief for cross-border tax issues caused by travel restrictions until September 30, 2020. (For related coverage, see GMS Flash Alert 2020-335, July 30, 2020.)
The CRA says it does not anticipate further extensions of the guidance, and taxpayers whose situation persists past September 30 are advised to contact the CRA.
Payment due dates for 2019 individual tax returns and 2019 or 2020 corporation or trust returns, as well as for instalment payments which had been set at September 1, 2020, have been further extended to September 30, 2020.
WHY THIS MATTERS
This new guidance should relieve any anxiety taxpayers in Canada may have felt about impending deadlines and due dates and their residency status in light of their extended stays in Canada (and for Canadians overseas) due to COVID-19-related restrictions.
This guidance also clarifies that these travel restrictions may not affect the tax residency of a nonresident individual, or the ability of a cross-border employee to qualify for treaty benefits on employment income.
In addition, the CRA’s guidance provides administrative relief to reflect its processing delays regarding certain withholding tax waiver requests and Section 116 Certificates.
Previously, the CRA indicated that its guidance would only apply from March 16, 2020 to August 31, 2020, but that it was prepared to extend its relief measures where needed.
This article is excerpted from “CRA Further Extends Travel Restrictions Relief,” in TaxNewsFlash-Canada (no. 2020-70, September 1, 2020), a publication of the KPMG International member firm in Canada.
The information contained in this newsletter was submitted by the KPMG International member firm in Canada.
To subscribe to GMS Flash Alert, fill out the subscription form.
We respectfully acknowledge that KPMG offices across Turtle Island (North America) are located on the traditional, treaty, and unceded territories of First Nations, Inuit and Métis peoples.
© 2024 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.