Deferral of Sales Tax Remittance and Customs Duty Payments until June

Businesses, including self-employed individuals, can defer until June 30, 2020 payments of the Goods and services tax (GST)/Harmonized sales tax (HST), as well as customs duty owing on their imports. Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral includes amounts owing for March, April and May. PBO estimates a total of $12.3 billion in tax payments (GST/HST and custom import duties) will be deferred between March 27 and June 30, 2020. The cost of borrowing for the government to avoid cash-flow issues during this period is estimated at $3.9 million. By extending the payment deadlines, PBO estimates the government will forgo a total of $27.1 million in interest and penalties for late payment. Finally, by extending the payment deadline, PBO estimates the government could lose an additional $61.0 million because of increased defaults. The total cost of the measure is thus estimated at $92.0 million.