On 31 March 2021, the Canada Revenue Agency (CRA) updated its COVID-19 and international income tax issues webpage with supplemental guidance for cross-border Canadian workers. A new Section VII offers administrative relief for Canadian resident cross-border workers concerning their 2020 income tax liability.
Section VII also clarifies the CRA's views about the effect of the travel restrictions on the determination of a permanent establishment in Canada. It provides for an extension of the initial administrative relief concerning individual Canadian income tax residence and employment income earned in Canada. The CRA plans to update the new Section VII with examples and answers to frequently asked questions in the near future; in the meantime, questions about the guidance or issues not covered by the guidance can be directed to [email protected].
Edward Kowalski, Esq., is Manager, Payroll Information Resources, for the American Payroll Association.