Some breathing room will be provided to individuals who received pandemic-related income support benefits during 2020 and who are unable to pay their taxes in full by April 30. That relief measure, which is outlined on the CRA website at https://www.canada.ca/en/revenue-agency/news/2021/02/government-of-canada-announces-targeted-interest-relief-on-2020-income-tax-debt-for-low--and-middle-income-canadians.html, indicates that such individuals will not be required to pay interest on outstanding tax debts for the 2020 tax year until April 30, 2022.

To qualify for targeted interest relief, individuals must have had a total taxable income of $75,000 or less in 2020 and have received income support in 2020 through one or more of the following COVID-19 measures:

• the Canada Emergency Response Benefit (CERB);

• the Canada Emergency Student Benefit (CESB);

• the Canada Recovery Benefit (CRB);

• the Canada Recovery Caregiving Benefit (CRCB);

• the Canada Recovery Sickness Benefit (CRSB);

• Employment Insurance benefits; or

• similar provincial emergency benefits.

The Canada Revenue Agency (CRA) will automatically apply the interest relief measure for individuals who meet these criteria.

Additionally, any CRA-administered credits and benefits normally paid monthly or quarterly, such as the Canada Child Benefit and the goods and services tax/harmonized sales tax credit will not be applied to reduce individuals’ tax debt owing for the 2020 tax year.