On March 21, 2025, the Government of Canada announced that it was deferring GST/HST remittances and corporate income tax payments from April 2 to June 30 to support businesses affected by tariffs.
The Canada Revenue Agency ("CRA") has outlined such relief measures, which includes:
- deferring GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025;
- waiving interest on GST/HST and corporate income tax instalments and arrears payments that are required to be paid between April 2 and June 30, 2025; and
- providing interest relief on existing GST/HST and corporate income tax balances between April 2 and June 30, 2025.
This deferral applies to payments due between April 2 and June 30, 2025. Businesses will not incur penalties or interest during this period if payments are made by the June 30 deadline. If the June 30 payment deadline is missed, the CRA will begin applying interest and penalties for the three-month period retroactively from the original due date, not from July 1.
To take advantage of the outlined relief measures, businesses do not need to provide proof of hardship from the impact of tariffs. The CRA will automatically grant relief on GST/HST and T2 accounts during the relief period from April 2 to June 30, 2025.
In closing, the implemented measures provide businesses with more time to pay corporate income tax and remit GST/HST, which allows for businesses to focus on operational needs during this time of uncertainty.
It is important to note that the relief provided applies only to remittance of payment; taxpayers must continue to file any GST/HST returns or corporate income tax returns on or before their ordinary due dates.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
