No interest on tax debt for one year

No interest on tax debt for one year

Canadians who received federal emergency benefits like ECPs during the pandemic will not have to pay interest on their tax debt for a year.

Ottawa will make the announcement today, according to two government sources.

The relief is available to those who earned total taxable income of $ 75,000 or less in 2020, and who received one of the following assistance measures.

  • The Canada Emergency Benefit (CEP)
  • Canada Student Emergency Benefit (CPUE)
  • The Canada Economic Stimulus Benefit (CEP)
  • The Canada Caregiver Economic Stimulus Benefit (PCREPA)
  • The Canada sickness benefit for economic recovery (CPMRE)

Employment insurance claimants will also be eligible.

Bad surprise

Many Quebecers risk receiving a nasty surprise when they file their income tax return this year.

Most emergency benefits do not have payroll deductions, like the infamous $ 2,000 ECP checks, which were taxable.

Some taxpayers may owe thousands of additional dollars to the tax authorities.

They will not have to pay interest on their tax debt for the last year before April 30, 2022.

Ottawa estimates that some 4.5 million Canadians will benefit from this tax relief.

The federal government will also announce that taxpayers who owe money to the tax authorities will not have to worry about seeing their benefits cut.

Under normal circumstances, the Revenue Agency has the practice of reimbursing itself by cutting benefit payments, such as the Canada Child Benefit and / or the GST credit.

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