On March 21, 2025, the Government of Canada unveiled a significant relief measure to assist businesses affected by tariffs.
This includes deferring the remittance of GST/HST and corporate income tax payments from April 2 to June 30, 2025.
Key Relief Measures for Businesses
The Canada Revenue Agency (CRA) has set forth several important changes aimed at supporting businesses during this period:
- GST/HST and Corporate Tax Payment Deferral: Businesses will be allowed to defer GST/HST and corporate income tax payments due between April 2 and June 30, 2025.
- Waiver of Interest on Payments: The CRA will waive interest on GST/HST and corporate income tax instalments, as well as any arrears payments that would be due during this period.
- Interest Relief: Existing GST/HST and corporate income tax balances will also benefit from interest relief between April 2 and June 30, 2025.
Important Dates and Payment Deadlines
- The deferral applies to payments that would normally be due between April 2 and June 30, 2025.
- No penalties or interest will be charged if businesses make their payments by the new June 30, 2025 deadline.
- If businesses fail to meet the June 30 deadline, the CRA will apply interest and penalties retroactively from the original payment due date, not from July 1, 2025.
Automatic Relief for Eligible Businesses
One of the most convenient aspects of this relief measure is that businesses do not need to submit proof of hardship due to tariffs.
The CRA will automatically apply the relief to GST/HST and T2 corporate tax accounts for the affected period (April 2 to June 30, 2025).
What the Relief Measures Cover
It’s important to note that while the remittance of payments has been deferred, businesses are still required to file their GST/HST and corporate income tax returns by their regular deadlines.
These new measures give businesses more flexibility in managing their corporate income tax and GST/HST remittances. By deferring payments and providing relief from interest charges, the Canadian government is offering essential support to help businesses focus on their operational needs during these uncertain times.
This deferral provides businesses with a vital opportunity to better manage their financial obligations and navigate the challenges brought on by the tariff environment.
To stay updated with the latest developments, businesses are encouraged to consult with professionals or access legal resources like the Legal Beacon.
FAQs
What is the new payment deadline for GST/HST and corporate tax?
The new deadline for GST/HST and corporate income tax payments is June 30, 2025.
Will businesses incur penalties if they miss the new deadline?
Yes, businesses that fail to pay by June 30, 2025, will face interest and penalties retroactively from the original due date.
Do businesses need to provide proof of hardship to qualify for relief?
No, businesses do not need to provide any proof. The CRA will automatically apply the relief measures for eligible businesses during the relief period.