On March 19, draft legislative changes were released that would extend deadlines due to the COVID-19 pandemic making it difficult or impossible to meet those time limits. The provisions would be retroactive to March 13, 2020. Of particular note to the tax community is that the Minister may suspend or extend a time limit established in:
Subsections 152(3.1) and (4) of the Income Tax Act (This means that the normal reassessment periods, which is 3 years for individuals and small businesses, can be extended.)
Subsection 37(11) and Paragraph (m) of the definition investment tax credit in Subsection 127(9) (This means that the 1-year deadline for Scientific Research and Experimental Development investment tax credits can be extended.)
Further, various deadlines applicable to the Canadian Court system, such as the Tax Court of Canada, may be extended.