Our COVID-19 Canadian Tax and Business News updates are our way of informing our clients, friends and business associates with recent information that may help businesses and individuals while coping with the outcomes from the COVID-19 pandemic.
Our goal is to monitor the news and release relevant information as it becomes available.
News from the Government of Canada
On March 18, 2020, Prime Minister Trudeau and Finance Minister Moreau made announcements that may be of interest to you.
The Prime Minister announced an $82 billion emergency response package for Canadians and businesses. The package includes $27 billion in direct support and $55 billion in tax payment deferrals to help individuals and businesses cope with liquidity issues.
Below is summary of some of what was announced:
- Personal tax filing and payment deadlines extended for individuals to June 1, 2020 and August 31, 2020, respectively
- Corporate tax payment and instalment deadlines will also be extended to August 31, 2020; the corporate tax payment relief is available to balances that become owing and instalments due on or after March 18, 2020 and before September 1, 2020. No interest or penalties will accumulate on these amounts during this period
- Trusts with a December 31, 2019 tax year will also see a filing deadline extension to May 1, 2020
- Acceptance of e-signatures on T183 forms which is signed to authorize filing of personal and corporate taxes
- Wage subsidies for small employers up to $25,000 per employer for up to three months to help keep individuals on payroll. The subsidy will be equal to 10% of remuneration paid, up to a maximum of $1,375. To qualify, the corporation must be eligible for the small business deduction. It is also available to non-profit organizations and charities
- GST/HST credit and the Canada Child Benefit to increase – benefit for lower-income individuals
- New EI measures in the form of the Emergency Care Benefit for individuals supporting an individual in quarantine or self-isolation and the Emergency Support Benefit for individuals who have lost their job or are subject to reduced hours. These new programs are expected to become available in April
As more details become available, we plan to provide by further updates.
There are important matters affecting businesses that have NOT changed, as follows:
- Partnership returns and slips must be filed by March 31, 2020
- Corporate tax filing deadlines have not changed
- Payroll remittances must be paid as usual
- Self-employed individual tax returns must be filed by June 15, 2020
- HST filings and payments, no changes
Relief from some of the above, would also help a lot of individuals so we will wait to see what happens.
News from Canadian Bankers Association
On March 18, 2020 Canada’s big six banks will allow mortgage payment deferrals for up to six months as part of extraordinary measures to help customers struggling with the financial impacts of the novel coronavirus pandemic. Talk to your bank for more information.
News from Business Development Bank of Canada and EDC
On March 13, 2020, the Federal Finance Minister announced, the government is establishing a Business Credit Availability Program (BCAP). The program is to support financing in the private sector through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Under this program, BDC and EDC will enhance their cooperation with private-sector lenders to coordinate financing and credit insurance solutions for Canadian businesses. This will allow BDC and EDC to provide more than $10 billion of additional support to businesses. Details have not been provided. Regardless, you may want to check out their web sites at www.bdc.ca and www.edc.ca.
Learn more about Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses.
As we all try to stay safe, we need to remind ourselves business will get back to normal, but in the meantime let’s all do our part to get to normal as soon as we can. If you have any questions or require more information don’t hesitate to reach out to us.
Get in touch by email: info@fazzaripartners.com or phone: 905.738.5758
