Canada Revenue Agency extends deadline for income tax debt for a year

In a press conference this morning, Prime Minister Justin Trudeau announced that Canadians who received federal pandemic benefits such as the Canada Emergency Response Benefit (CERB) in 2020, and made over $75,000, will be granted a year-long extension on the deadline for income tax debt, until April 2022.

“Right now I don’t want you to have to worry about what you might owe in taxes,” Trudeau said, “that’s why we are providing one year without interest on certain 2020 tax debt, giving people more flexibility to repay amounts owing from last year.

“If you received federal emergency benefits like the CERB and you made up to $75,000 in taxable income, you will not have to pay interest on 2020 tax debt until April of next year. Our priority is ensuring that you and your family get through this pandemic and back on your feet.”

Trudeau also addressed one of the issues regarding CERB eligibility and a lack of clarity in the criteria that may result in a number of Canadians having to repay the government.

“For people who accessed the CERB based on their gross income instead of their net income, as long as they met the other eligibility criteria, you will not have to return those CERB payments.”

For information about financial aid programs currently offered by the government of Canada during the COVID-19 pandemic, please click here.

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