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April 1, 2020 DOWNLOAD PDF

Tax Update: GST/HST Considerations for Canadian Businesses Affected by COVID-19

Original Newsletter(s) this article was published in: Blaneys on Business: April 2020

The Department of Finance and the Prime Minister, Justin Trudeau, announced new support for small businesses on Friday, March 27, 2020. These measures come as part of the COVID-19 Economic Response Plan and aim to provide direct support and tax deferrals to Canadian workers and businesses to help them in these difficult times:

GST/HST for Canadian Businesses

Customs Duty and Sales Tax

With respect to the payment of GST and customs duties on goods imported by businesses:

  • section 33.7(1) of the Customs Act is being used to defer payment deadlines of statements of accounts for March, April, and May until June 30, 2020.

The Customs Act is overseen by the Minister of Public Safety and Emergency Preparedness and administered by the Canada Border Services Agency.  Typically, payments owing for customs duties and the GST on imports are due before the first day of the month following the month in which the Statements of Accounts are issued.

The author would like to acknowledge and thank articling student Antoine Killin for his contributions to this article.

The information contained in this article is intended to provide information and comment, in a general fashion, about recent cases and related practice points of interest. The information and views expressed are not intended to provide legal advice. For specific legal advice, please contact us.