Canada: Tax relief from interest, penalties in Ontario (COVID-19)

Six-month interest- and penalty-free period

Six-month interest- and penalty-free period

Businesses in Ontario may be eligible for new tax relief to mitigate the economic effects of continuing coronavirus (COVID-19) pandemic-related public health measures.

Businesses will have a six-month interest- and penalty-free period for most provincially administered tax payments and related returns due between 1 January 2022 and 1 July 2022. The relief applies to the following provincially administered taxes:

  • Employer health tax
  • Beer, wine and spirits taxes
  • Tobacco tax
  • Insurance premium tax
  • Fuel tax
  • International fuel tax agreement
  • Gas tax
  • Retail sales tax on insurance contracts and benefit plans
  • Mining tax
  • Race tracks tax

The province's tax relief is in addition to certain non-tax relief for eligible businesses subject to closure or capacity restrictions under the province's health measures.

Read a January 2022 report prepared by the KPMG member firm in Canada


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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.