Interest Relief on 2020 Taxes Ends April 30

Due to the COVID-19 pandemic, the Federal Government provided interest relief on amounts owed from eligible 2020 taxpayers. This interest relief ends on April 30, 2022, and interest will be charged on any 2020 taxes owing after that date. To be eligible for this relief, a taxpayer must have met all of the following criteria:

• 2020 taxable income of $75,000 or less;
• In 2020, received at least one of:
  • A personal Federal COVID-19 Benefit (CERB, CESB, CRB, CRCB, CRSB);
  • Employment Insurance (EI) or;
  • Provincial or territorial emergency benefits
• Filed their 2020 income tax and benefit return

If all eligibility criteria were met, the Canada Revenue Agency (CRA) automatically applied interest relief to 2020 taxes owing. This interest relief only applied to 2020 taxes owing, late-filing and other penalties may still apply. If you took advantage of this interest relief, your 2020 taxes owed must be paid on or before April 30, 2022, to avoid interest charges. If you have questions about interest relief, Federal COVID-19 support programs or other corporate tax and accounting matters, please contact Bateman MacKay LLP.