Ontario Government Extends Interest and Penalty-Free Period for Business Taxes

In March of 2020, the Ontario Government announced an interest and penalty relief period, which allowed for outstanding returns and taxes that would have been due between April 1, 2020, and August 31, 2020, to be filed on August 31, 2020, without accruing penalties or interest. On August 12, 2020, the Provincial Government announced an extension to this interest and penalty-free period by one month to October 1, 2020. This relief applies to the Employer Health Tax (EHT), International Fuel Tax Agreement, Retail sales tax on insurance contracts and benefit plans, and Insurance Premium, Tobacco, Fuel, Gas, Beer, wine and spirits and Mining taxes. This is not a forgiveness of any taxes owed since all payments due between April 1, 2020, and October 1, 2020, still need to be made on October 1, 2020. On October 2, 2020, regular filing and payment activities will resume and regular penalties and interest will apply. If you have any questions about how this interest and penalty relief period may impact your business, please reach out to your Bateman MacKay LLP Account Manager.