News and Insights

CRA Announces Temporary Tax Relief Measures for Businesses Affected by Tariffs

April 24, 2025

Sector:

Temporary Canadian Tax Relief Measures for Businesses Impacted by Tariffs (2025)

As a leading Toronto Chartered Accountant, we at Kreston GTA understand the critical importance of staying informed on tax relief measures that can benefit your business. On March 21, 2025, the Government of Canada announced significant, temporary tax relief measures to support Canadian businesses adversely affected by newly imposed tariffs. The Canada Revenue Agency (CRA) is proactively implementing these provisions to alleviate cash flow constraints and help maintain business continuity.

What Are the 2025 Temporary Tax Relief Measures?

The Government of Canada’s 2025 relief package introduces several automatic provisions for businesses:

GST/HST and Corporate Income Tax Payment Deferral

  • Deferral of Payments: All GST/HST remittances and corporate income tax payments (T2 returns) due between April 2 and June 30, 2025 may be deferred without penalty.
  • This measure is designed to improve business liquidity during periods of economic uncertainty, allowing organizations to prioritize their operational needs.
  • Dramatic low-angle view of skyscrapers and a Canadian flag in downtown Toronto, under a clear blue sky.

Interest Waivers and Relief

  • Interest Waivers: The CRA will waive interest on GST/HST and T2 instalment and arrears payments required between April 2 and June 30, 2025.
  • Interest Relief on Existing Balances: Any existing balances on GST/HST and T2 accounts will also receive interest relief for this specific period.

These measures are applied automatically. Businesses are not required to demonstrate hardship or provide evidence of direct tariff impact to qualify.

Filing Compliance Remains Critical

It is imperative that businesses continue filing all GST/HST and T2 returns by their respective due dates to remain compliant with the CRA’s requirements. While payment deadlines are deferred, filing deadlines are not; failing to file returns on time can still result in penalties or compromise relief eligibility.

Interest charges on deferred balances will resume on July 1, 2025. Businesses should plan to remit any outstanding payments before this date to maximize the benefit of these measures.

Illustrative Example: How Tax Relief Works

Let us consider a practical example typically encountered by our clients:

Example Scenario

A Canadian manufacturing company has the following tax obligations:

  • Corporate income tax instalment due: May 15, 2025 — $75,000
  • GST/HST remittance due: April 15, 2025 — $50,000

How Relief Works Under the 2025 Program:

  • The company can defer the $50,000 GST/HST payment until June 30, 2025, without incurring any interest charges.
  • The $75,000 corporate income tax instalment can similarly be deferred to June 30, 2025, with all interest waived during the relief period.

This deferral provides the company with enhanced liquidity, allowing it to manage operational expenses more effectively during the tariff-impacted period.

Additional Tax Planning Opportunities

Complex changes in tax policy, such as these relief measures, often create strategic tax planning opportunities. A sophisticated approach may include:

  • Cash flow optimization: Deferring tax payments can be integrated with other available government programs to better manage working capital.
  • Tax compliance review: Ensure GST/HST and T2 filings are up-to-date to preserve eligibility for relief.
  • Holistic business advisory: Integrate these measures with long-term business strategies for maximum benefit.

For broader guidance on our services, see our Tax Planning and Compliance and Business Advisory pages.

How Kreston GTA Can Help Your Business

As experienced Canadian Chartered Accountants, Kreston GTA is positioned to help you navigate government tax relief, understand compliance requirements, and leverage these measures to your organization’s advantage. We provide tailored support for:

  • Tax planning and compliance during relief periods
  • Strategic cash flow management
  • Ongoing business advisory for resilience and growth

Contact our team at info@krestongta.com or visit our Contact page to schedule a consultation and learn how these tax relief measures can benefit your business.

Frequently Asked Questions (FAQ)

1. Who qualifies for the 2025 Canadian tax relief measures?
Any Canadian business with GST/HST or T2 tax payments due between April 2 and June 30, 2025, qualifies automatically. No demonstration of hardship or direct tariff impact is required.

2. Do I still need to file my GST/HST and T2 returns on time?
Yes. Filing deadlines remain unchanged. You must file all returns by their original due dates to maintain compliance and receive interest relief benefits.

3. When do deferred tax payments need to be paid by?
All deferred GST/HST and corporate tax payments must be remitted by June 30, 2025. Interest charges will resume on any outstanding balances as of July 1, 2025.

4. Will interest on previous balances also be waived?
Yes. Interest on existing GST/HST and T2 balances will be waived during the relief period (April 2 – June 30, 2025).

5. Can Kreston GTA assist with other government COVID-19 or economic relief programs?
Absolutely. Kreston GTA offers comprehensive support for all government relief programs, including guidance on eligibility and tax planning integration.

If you are looking for trusted advice on tax relief for your Canadian business, connect with us at Kreston GTA—your dedicated Chartered Accountants in Toronto.