HUNTSVILLE, ONT. -- Does it make sense for the Canada Revenue Agency to delay the income tax-filing deadline beyond April 30?
I don't think so.
I appreciate it is a filing deadline like no other, but make no mistake, it is a deadline. Taxpayers who owe money and don't file on time will be subject to penalty and interest charges.
Last year, the federal government extended the tax filing deadline to May 31 and then suspended late payment penalties until September. It was a relief for many, for sure.
But that was then. Today we are in a different situation with the economy trending in the right direction, job creation and metrics supporting a recovery albeit an uneven one.
Clearly there are Canadians and small business owners who continue to struggle and are looking for more relief especially given we are in the third wave of the pandemic. And to be fair I think they deserve it.
But not everyone deserves a break.
There is a groundswell happening to support a filing deadline delay by a month similar to last year. Arguably things were tough last year, and for some are even tougher this year. However, CRA has telegraphed loud and clear the deadline will remain driven in part by a concern of disrupting income means-tested benefits to those who continue to need it.
CRA faces the challenge of an uneven recovery, where one size doesn't fit all.
I believe they get that to some extent, and have already stated that those who earned less than $75,000 in 2020 and received government benefits or employment insurance have a pass until next April.
​The rules in place are for the masses, and while frustrating, there has to be a process. The reality is that not everyone is in dire shape.
As in life there can be and always will be exceptions to the rules. However, exceptions rarely change policy, and it is up to you to decide if you really are the exception worthy of consideration.
I'm not sure it is reasonable to expect a national deadline to be moved on a few days' notice. What is reasonable to expect is that those who may need a break take control and reach out to CRA to explain their situation, how filing is beyond their control, and why their filing deadline needs to be moved?
CRA has also stated that they will assist those Canadians who need it by reviewing requests on a case-by-case basis through existing taxpayer relief provisions.
The clock is ticking.
