February 20, 2025
Canada Revenue Agency (CRA) has announced a series of administrative “extensions” to the regular tax reporting filing deadlines as a consequence of some challenges faced by taxpayers the last few weeks. While we still encourage everyone to make their best efforts to file by the regular deadline as the CRA announcements do not contain many details at this point, the filings listed below may be filed by the newly announced deadlines without late filing penalty or arrears interest.
Update on the Filing of Information Returns
The CRA provided an update on the filing of information returns. If you file information returns, such as the T3 (trust income), T4 (remuneration paid), T4A (pension and other income), or T5 (investment income), there are some important updates you need to be aware of.
For Businesses & Corporations:
T4, T4A and T5 information returns – Due to issues with the CRA electronic filing system for these information returns reporting salary and wages, fees and income payments, and investment income, the deadline to file without late-filing penalty is now March 7th, 2025. This is an extension from the normal February 28th, 2025 filing deadline and applies to all filers.
T4PS and T5008 information returns – these information returns have been impacted by the announced changes to the capital gains inclusion rate, so they may be filed until March 17th, 2025 without late-filing penalty. This is an extension from the normal February 28th, 2025 filing deadline and applies to all filers.
For Trusts:
T3 Trust income tax returns – T3 Trust tax return filers impacted by the announced changes to the capital gains inclusion rate (which we have reason to believe means any trust that is reporting capital dispositions in 2024) will have until May 1st, 2025 to file their T3 return and slips without late filing penalty or arrears interest. This is an extension from the normal March 31st, 2025 filing deadline and applies to Trusts with a December 31st, 2024 taxation year end date. T3 returns without any capital dispositions in 2024 will still have a filing deadline of March 31st, 2025.
For Individuals
T1 personal income tax returns – T1 Individual tax return filers impacted by the announced changes to the capital gains inclusion rate (which we have reason to believe means any taxpayer that is reporting capital dispositions in 2024) will have until June 2nd, 2025 to file their T1 return without late filing penalty or arrears interest. This is an extension from the normal April 30th, 2025 filing deadline and does not appear to affect T1 filers that would have a June 15th, 2025 deadline. T1 returns without any capital dispositions in 2024 will still have a filing deadline of April 30th, 2025.
Questions? Get in touch.
Should you have any questions or concerns regarding this announcement by the CRA, please contact your Virtus advisor or fill in the form below.
