Tax Relief

Canada expands tax relief for Covid influence with US focus

The Canadian Tax Agency is expanding income tax relief for those affected by Covid-19 travel restrictions, with a focus on U.S. citizens in Canada and Canadian employees who work for U.S. companies.

The Canada Revenue Agency’s supplementary guidance on the impact of the pandemic on international income tax, released Thursday, includes extensions to the relief that expired on September 30, 2020.

Individuals stuck in Canada due to travel restrictions will not count their time in the country towards the 183-day test that determines tax residency until restrictions are lifted or December 31st, whichever comes first in the guidelines.

The test is part …

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