If you received COVID-19 benefits from the Government of Canada and have taxes owing for 2020, you might be eligible for interest relief. Only those who meet all the following criteria are eligible for the interest relief. This will be applied automatically by CRA on any taxes owing for 2020.
- Your total taxable income was $75,000 or less
- You received at least one COVID-19 Benefit in 2020: CERB, CESB, CRB, CRSB or EI
- Provincial or Territorial emergency benefits
- You filed your 2020 income tax and benefit return
- You have a balance owing for your 2020 taxes
If you do not meet all of the above criteria, there might be other options for you in taxpayer relief provisions.
If you do meet all of the above criteria, you will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022. Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.
Late-Filing Penalties Still Apply
If you file your 2020 taxes after the due date, you will be charged a 5% late filing penalty on top of what you already owe, plus an additional 1% for each month.
For more information, please do not hesitate to contact us your Burnaby accountant at Jason Ding, CPA Inc.!