Government Offers Temporary Tax Relief for Businesses Impacted by Tariffs
On March 21, 2025, the Government of Canada introduced temporary interest relief measures aimed at helping businesses manage cash flow considering new tariff impacts. These initiatives are designed to ease the financial burden on companies during this challenging period.
What This Means for Your Business
To support businesses, the Canada Revenue Agency (CRA) will be offering, among other assistance, the following relief measures:
- GST/HST and corporate income tax payments can be deferred: Any payments originally due between April 2 and June 30, 2025, can now be deferred without interest accruing.
- No interest will accrue: Interest charges on outstanding GST/HST and T2 corporate tax instalments and arrears will be waived for amounts due between April 2 and June 30, 2025.
- Relief applies automatically: Businesses do not need to apply for or provide evidence of hardship related to the tariffs. The CRA will automatically apply these measures during the relief period. It’s important to note that interest will begin accumulating again as of July 1, 2025, so businesses should plan accordingly and ensure that amounts owing are paid to avoid interest applying again after June 30, 2025.
Staying Compliant: Filing Still Required
While interest relief on GST/HST and corporate tax returns is available, all businesses must still file their GST/HST and T2 tax returns by the required deadlines to stay in good standing with the CRA. Late filing penalties will still apply where there is balance owing, but interest relief will be applied to taxes and any penalties owing. Notably, the CRA currently has no way to distinguish between Canadian and non-resident companies, so the interest relief will apply to all companies.
Need Help Navigating These Changes?
If you’re unsure how these measures apply to your business or you just need assistance with any Canadian sales tax matters, customs, trade and tariff matters or income tax matters, please reach out to your accountant or tax advisor.