COVID-19 Pandemic Economic and Tax Measures For Charities and Not-For-Profits

  • April 07, 2020
  • Robert B. Hayhoe and Gwenyth Stadig, Miller Thomson LLP

Canada’s federal government continues to announce new economic measures to help stabilize the economy during the COVID-19 pandemic. Outlined below are the measures announced thus far by the federal government, along with expansions to existing programs, that are available to assist Canadian charities and non-profit organizations (“NPOs”) facing financial challenges during the pandemic.

Deferred Tax Filings

The Canada Revenue Agency (“CRA”) has extended the deadline to December 31, 2020 for all registered charities to file any Form T3010 that is due between March 18, 2020 and December 31, 2020 in order to give charities more time to complete and submit their annual Registered Charity Information Return.

CRA has also extended the filing deadline for NPOs that are not also charities. The deadline has specifically been extended to June 1, 2020 for NPOs for the filing of their T2 Corporate Income Tax Return and their Form T1044 information return.

However, in light of the need to maintain certain administrative requirements ahead of the June 1, 2020 extended deadline for the filing of individual income tax and benefit returns, the filing deadline for non-charitable trusts has only been extended to May 1, 2020. The deadline to submit any required objections (including ones dealing with charities compliance issues) to the CRA has also been extended from March 18, 2020 to June 30, 2020.

Deferral of Sales Tax Remittance and Customs Duty Payments

Furthermore, the Government of Canada has deferred payment for any sales tax remittance and customs payments to CRA and the Canada Border Services Agency, as is applicable, until June 30, 2020.

What this means is that eligible payments of the Goods and Services Tax/Harmonized Sales Tax (“GST/HST”), as well as customs duties owing on their imports are suspended until June 30, 2020. The deferral will apply to GST/HST remittances for:

  1. the February, March and April 2020 reporting periods for monthly filers;
  2. the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and
  3. for annual filers, the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.

Further, there is a suspension on the requirement for GST and customs duty payments for imported goods for amounts owing for March, April and May.