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21 May 2020

Canada Revenue Agency publishes guidance on international income tax issues resulting from COVID-19 travel restrictions

The Canada Revenue Agency (CRA) published guidance on May 19, on various international income tax issues resulting from COVID-19 related restrictions on travel (the Travel Restrictions) and CRA service interruptions. The administrative guidance is intended to address concerns raised by taxpayers and their representatives and covers the following Canadian income tax topics:

  • Income tax residency
  • Carrying on business in Canada and permanent establishments
  • Cross-border employment income
  • Waiver requests relating to payments to non-residents for services provided in Canada
  • Dispositions of taxable Canadian property by non-residents of Canada

The temporary relieving positions outlined in the guidance will apply for the period March 16 to June 29 but may be extended if necessary or rescinded if no longer required.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert

Document ID: 2020-1343

 

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