How COVID-19 is Affecting Taxes

By Staff Reporter - 29 May '20 10:55AM

(Photo : How COVID-19 is Affecting Taxes)

Due to the outbreak of the COVID-19 virus, there have been many sudden changes in the world. One of these changes has been the effect on the economy. Many people have had to close their businesses or are being fired due to compliance with social distancing regulations. All of the changes have left a lot of people wondering how these changes will affect taxes.

Business Taxes

In order to stay afloat, many companies have had to start working remotely and stop certain operations, which means that there will be a significant decline in income for the company. With so many expenses piling up, it's essential to know what will happen with your tax payments.

Many tax collection organizations are allowing businesses to be exempt from paying taxes to lift the burden of having to stay operational and pay employees. Of course, this will be for a limited time, while economic activity is at a minimum. In addition to postponing payments, some tax organizations are also paying tax returns earlier to help support businesses financially.

For more information, it's advised that you contact your tax agency to see what will happen to your business.

Personal Tax

Many people may be wondering what will happen to their taxes. This is a concern, especially for those who don't have jobs or are on reduced pay. Government agencies have been considering the circumstances and are trying everything to help.

In terms of filing taxes, there have been many extensions. Many people won't have to file until later in 2020. The extension periods have been different in many countries. Governments have stated that the citizens should familiarize themselves with the new guidelines.

When it comes to actual tax payments, those are also being postponed. Tax agencies are delaying payment on owed taxes and outstanding balances. If you're expecting benefits from these agencies, then filing sooner will be advantageous to you as you'll get your money sooner rather than later.

Audits

Audits are continuing, but they are being restricted. Also, auditors are being given the technology needed to conduct checks remotely. For many small to medium businesses, there will be a short postponement in audits.

There are cases where tax returns and high-risk refund claims will be dealt with sooner and with limited client contact. If you're not sure about whether or not this is a measure that your tax agency is implementing, then it's best to do some research.

For the best results, it's recommended that you include your country in the search, for example, "Tax Law Canada". This will help if you work in a different country to where you pay taxes.

Expats

Thanks to technology and ease of travel, many people have had the opportunity to move to a different country for work. If you're one of these, then you may be facing some tax problems.

Many countries have implemented tax-related measures, while others have yet to make a final decision. As an expat, you may have to file your taxes in the country you're from and where you work. In this case, it's advised to adhere to the regular filing rules for both countries.

During the pandemic, it might not be easy to obtain certain documents needed for filing. It's in this case, where extensions may be given.

Conclusion

The COVID-19 pandemic has caused a lot of changes in the world. For our society to adopt, many measures are being put in place. Taxes are no exception to this. It can be confusing to understand the changes because they are happening so suddenly, Get all the information you can find on your country's changed policies to avoid noncompliance.