The Canada Revenue Agency (CRA) has updated its Guidance on international income tax issues raised by the COVID-19 crisis. As previously reported, the guidance includes the Agency's positions on income tax residency, carrying on business in Canada/permanent establishment, cross-border employment income, and other issues.

The update includes the addition of a new section VII. Section VII provides further guidance and administrative relief for Canadian-resident cross-border workers in respect of their 2020 income tax obligations. It also clarifies the CRA's views regarding the effect of the travel restrictions on the determination of a permanent establishment in Canada and provides for an extension of the initial administrative relief in respect of individual Canadian income tax residence and employment income earned in Canada.