Several Canadian tax authorities are offering temporary deferral of tax remittances in an attempt to provide flexibility to businesses facing challenges from U.S. tariffs.
- The Canada Revenue Agency (CRA) announced a temporary deferral of Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and corporate income tax payments that are otherwise due between April 2 and June 30, 2025.
- Quebec announced a deferral of Quebec Sales Tax (QST) remittances and corporate income tax payments due between April 2 and June 30, 2025.
- Ontario is offering interest and penalty relief for businesses that temporarily delay payments otherwise due for 10 provincially administered taxes between April 1, 2025 and October 1, 2025. The affected tax programs include Employer Health Tax, Insurance Premium Tax, Gasoline Tax, Fuel Tax, Mining Tax, Tobacco Tax, International Fuel Tax Agreement, Beer, Wine & Sprits Tax, Retail Sales Tax on insurance contracts and benefits plans, and Race Tracks Tax.
- Manitoba has similar deferrals of payments for Retail Sales Tax and Health and Post-Secondary Education Tax Levy for three months, starting with February 2025 payments until June 20, 2025.
It is important to remember that while remittance deadlines are extended, filing deadlines remain unchanged unless otherwise announced. Businesses should continue to prepare and file their tax returns on time, even if payments are deferred. They should also maintain internal controls to track deferred payments and avoid future interest charges once the deferral period ends.
Strategic opportunities and cautions
This additional liquidity presents an opportunity to reallocate funds temporarily toward operations, debt servicing, or strategic investments. However, businesses must be cautious. Deferral does not mean forgiveness—these amounts will be payable when the relief periods expire. Also, accumulating tax obligations without a clear payment strategy could lead to cash flow challenges when the payments become due.
How BDO can help
BDO's Indirect Tax team is closely monitoring the implementation details of the deferral and how it may impact businesses across sectors. For more insights or to speak with an advisor, please reach out to your BDO representative or contact us directly.
The information in this publication is current as of April 8, 2025.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.