Most Have Filed T1s, But New Tax Deadlines Loom

Beth Graddon

According to the most recent tax filing statistics, the majority of Canadians chose to abide by the extended June 1 tax filing deadline even though late filing penalties and interest won’t apply until September 1. But that doesn’t mean that tax season is over – there are some important filing deadlines on the horizon, and that matters because CRA is officially resuming audit activity.

Here’s a breakdown of what the 2020 tax filing season has looked like so far based on CRA’s income tax filing statistics. The total number of returns filed now sits at just over 27 million, compared to the nearly 30 million returns filed last year. There is no surprise in the fact that over 90% of returns were filed electronically:

Returns received from February 10, 2020 to June 15, 2020

Filing method

Number of returns

Percentage of total

EFILE

15,322,455

56.6%

NETFILE

  9,213,694

34.0%

File my Return (FMR)

       66,107

  0.3%

Total - electronic

24,602,256

90.9%

Paper

  2,461,027

  9.1%

Total - all methods

27,063,283

100%

Interestingly, the average tax refund has increased even more since earlier in the season to $1,837 compared to $1,706 for 2018 and $1,765 for 2017 filings.

What’s Next?

  • June 30: GST/HST remittances for businesses are due

This extended GST/HST deadline requires that businesses make net GST/HST remittances on June 30, 2020 based on the following collection periods:    

  • Monthly filers: Net GST/HST collections for February, March, April
  • Quarterly filers:  Net GST/HST collections for January 1 – March 31, 2020
  • Annual filers: Net GST/HST collections for all prior year sales, due June 30, 2020

GST/HST remittances are adjusted in the positive for items like collections on bad debts or in the negative for input tax credits.  The net tax reduced by any instalments paid or GST/HST rebates is then remitted if there is a balance due.

  • September 1: Personal income tax returns must be filed, and any balance owing must be paid

After September 1, late filing penalties and interest will apply to any taxpayer who fails to abide by this extended deadline. For those required to make instalment payments, plan accordingly as the September 15 instalment payment date still must be met soon after.

  • September 30: re-payment of overpaid benefits

Those who received overpayments for benefits like the Canada Child Benefit (CCB), GST/HST tax credit, or Canada Workers Benefit (CWD) must repay these amounts by September 30.

It’s also important to keep in mind that the CRA is starting to ramp up their audit activity again, after postponing it at the height of the pandemic.

Additional educational resources: Learn an essential service, become a DFA-Tax Services Specialist™, and provide the tax guidance Canadians need now more than ever.

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