Tax Measures Under Canada’s COVID-19 Economic Response Plan

In addition, the Government of Quebec will accelerate the processing of requests for tax credits intended for businesses and tax refunds. Through the new measures, the government is adding $7.3 billion to companies’ liquid assets in the coming months for the postponement of the QST payment and more than $600 million in accelerated payments of tax credits.

On April 9, 2020, the Government of Quebec announced that the deadline to report and remit tax on lodging for the first calendar quarter of 2020, otherwise due by April 30, 2020, is extended to July 31, 2020. As a result, registered persons for this tax will generally be required to file two returns on or before July 31, 2020 (one for the first calendar quarter of 2020, and one for the second calendar quarter).

As of April 20, 2020, no measures have been announced regarding other taxes such as:

  • The tax on alcoholic beverages;
  • The tax on insurance premiums;
  • The specific duty on new tires;
  • The municipal tax for 9-1-1 services;
  • The fuel tax; and
  • The tobacco tax.

Other measures 

To limit in-person contact, Revenu Québec will allow tax preparers to use an electronic signature on certain forms. The forms in question are form TP-1000.TE-V (Online Filing of the Personal Income Tax Return by an Accredited Person), form MR-69-V and form CO-1000.TE (Online Filing of the Corporation Income Tax Return by an Accredited Person). The information sessions usually broadcast in person to individuals and businesses, and the support program for small and medium-sized businesses, are now offered by telephone.

Revenu Québec has also has issued the following relief measures regarding audit and collection activities, objection, and appeals.

  • Audits and collections: Audits and collection activities are being limited. Concerning collection measures, Revenu Québec has indicated that it will be amenable, on a case-by-case basis, to extending payment agreements.
  • Objection: Deadlines for objections to reassessments are extended, such that the expiration of any 90-day period that falls between March 13, 2020, and June 29, 2020, is postponed to June 30, 2020.
  • Appeals: deadlines are suspended from March 15, 2020, until August 31, 2020. As of September 1, 2020, the suspension will be lifted and time limits will begin to run again for the time not yet elapsed. This applies to the following procedural matters:
  • Appeals of assessments brought to the Court of Quebec;
  • Summary appeals to the Small Claims Division of the Court of Quebec;
  • Requests for review of a decision of the Minister of Revenue refusing to extend the time for filing an objection;
  • Requests to extend the time to file an appeal or a summary appeal.
  • Collection: Revenu Québec grants a release of garnishments on current bank accounts for tax debt. On March 17, 2020, Revenu Québec ceased sending employers income seizure by garnishment notices and formal requests to pay as part of its tax debt collection. Effective April 17, 2020, existing garnishments and requests to pay are suspended until further notice. As a result, employers do not have to withhold or remit these amounts unless otherwise instructed. This temporary suspension does not apply to garnishments for support payments. Regarding support payments, Revenu Québec said that it will not garnish the CERB but it will garnish all employment insurance benefits, including the new Employment Insurance – Emergency Response Benefit (EI-ERB).

Revenu Québec is extending most administrative deadlines that would normally fall in the period from May 31, 2020, to August 31, 2020, to September 1, 2020. Revenu Québec previously postponed administrative tax filing deadlines (other than returns with specific postponement dates listed above) that fell between March 17, 2020, and May 31, 2020, to June 1, 2020. This postponement applies to the following non-exhaustive list:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40