CRA Update: Tax Deadline Extended Again!

Another extension to the CRA tax deadline should give you more time to leverage tax credits. Consider investing in Brookfield Renewable Partners with any savings.

| More on:

While it might seem early to call it, I think you would agree that 2020 will be a significant part of human history a few years from now. The unprecedented situation due to the global health crisis left everybody reeling. As borders closed and businesses shut down, people had little time to pay attention to their taxes for the previous income year.

The government and the Canada Revenue Agency (CRA) kept the gravity of the situation in mind when it announced an extension to tax-filing deadlines. In May, the CRA extended some of the tax-filing deadlines to September 1, 2020, instead of the usual April 30th deadline. It provided much-needed relief for Canadians who would otherwise have to pay hefty late filing fines.

In a significant move, The CRA has announced a further extension of the tax payment deadline for individual, corporate, and trust income tax returns to September 30, 2020.

Filing and payment deadlines

While the government did not announce tax-filing deadline extensions, the CRA noted that it would not enforce penalties for late filing when it comes to individual, corporate, and trust income tax returns. Even if you file it by the new September 30th deadline, you will not incur tax penalties.

The CRA is taking a step further by waiving interest on current tax debts for everybody from April 1 to September 30, 2020, and from April 1 to June 30, 2020, for goods and services tax along with harmonized sales tax.

Despite all the extensions it provides to Canadians, the CRA is urging everybody to file their taxes as early as they can, especially for individuals receiving tax credits and benefits like the Canada Child Benefit.

Do you have any savings?

If you have any savings, I would advise using your money to grow your overall wealth. If you invest capital in the right stocks and hold it in your Tax-Free Savings Account (TFSA), you can earn substantial additional income that you will not need to worry about paying taxes on. There is no telling what the COVID-19 situation holds. If you want to avoid the uncertainty in markets due to the pandemic, you should look at stocks that offer long-term growth.

Renewable energy is perhaps the biggest opportunity you can capitalize on right now. Over the next few decades, the world will likely phase out fossil fuels and rely entirely on renewable energy. With the expectation of more than $5 trillion in investments on renewable energy over the next five years, the transition to solar, wind, and hydropower is already underway.

A company leading the way to renewable energy adoption is Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).

The company owns more than $50 billion in assets over 5,000 generation facilities. It operates some of the largest hydro, solar, and wind infrastructures worldwide, and it has been conducting its operations for the last 20 years.

In the time it has been around, BEP has grown more than five times, and it has beaten the market in every decline during that period. The company is already performing well this year. It has grown 66.28% since the March 2020 crash, and it continues to climb. At writing, it is trading for $58.30 per share with a juicy 5.12% dividend yield.

Foolish takeaway

Take advantage of the tax deadline delay and leverage as many tax credits as you can. If you have significant savings, I would advise investing some of your money in a portfolio of reliable stocks and storing the shares in your TFSA to grow your wealth tax-free.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned.

More on Dividend Stocks

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »