Canadian businesses continue to be impacted by the ongoing uncertainty brought on by tariffs. We have outlined below the key announcements to date that impact corporate taxpayers in our region.
Federal Support
Recent Announcements
On March 21, 2025 the Canada Revenue Agency (CRA) announced that they will:
- defer GST/HST remittances and corporate income tax payments due between April 2 to June 30, 2025;
- waive interest on GST/HST and corporate tax instalment and arrears payments that are required to be paid between April 2 and June 30, 2025; and
- provide interest relief on existing GST/HST and corporate tax balances between April 2 and June 30, 2025.
Practical Application for Canadian Businesses
Our interpretation of the announcement has the following practical considerations:
- there is no requirement to demonstrate that you are directly impacted by the tariffs since this relief is available in respect of interest on all GST/HST and corporate tax remittances outstanding between April 2 and June 30;
- interest on outstanding installments or balances owing accrued to April 2, 2025 will still be payable, but no further interest will be accrued during the period of relief; and
- businesses are still required to file any GST/HST returns or corporate tax returns by their due dates to remain compliant with filing requirements and avoid any related failure to file penalties as there is no corresponding relief.
This allows businesses to direct their cashflow to supporting their ongoing operations and to defer the payment of any tax installment, tax balances due or GST/HST balances due during the period of relief.
Ontario Support
Recent Announcements
On April 7, 2025, the Ontario government announced similar but more expansive measures:
- relief from interest for businesses remitting under Ontario’s 10 business-focused tax programs, included the Employer Health Tax, Insurance Premium Tax, Gasoline Tax, Fuel Tax, Mining Tax, Tobacco Tax, International Fuel Tax, Beer, Wine & Spirits Tax, Retail Sales Tax on Insurance Contracts and Race Tracks Tax;
- relief covers the six-month period beginning April 1, 2025 and ending October 1, 2025; and
- the return of $2 billion in surplus funds to Ontario Businesses under the WSIB program. Eligible businesses who are safe employers have already received their distribution amount in March (often applied as a credit to the WSIB account).
Practical Application for Ontario Businesses
The announcements by the Ontario government provide extended relief of tax programs administered directly by the province until October 1, 2025. Ontario is a harmonized sales tax province, and its corporate tax is administered by the CRA; as such, the federal relief applies to these items. Although the provincially administered programs are extended to October 1, 2025, you should ensure that any corporate tax balances, installments or GST/HST remittances are made before the federal relief period ends (July 1, 2025).
Quebec Support
Recent Announcements
On March 28, 2025 Revenue Quebec announced temporary relief measures mirroring the announcement of the CRA. Revenue Quebec will defer any QST and corporate income tax payments due from April 2 to June 30, 2025 and interest will be waived on income tax and QST payments, including pausing interest accruals on existing balances.
Practical Application for Quebec Businesses
Similar to the federal relief, tax installments and sales tax balance payments can be deferred until June 30, 2025 to allow for the short-term cash relief for Quebec corporations.
