COVID-19 – Canadian Tax and Business News, release #7
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.
“The future depends on what you do today” – Mahatma Gandhi
Increase to the Wage Subsidy
On March 27, 2020, Prime Minister Trudeau announced the temporary wage subsidy will increase to 75% of remuneration paid. The increase is to help businesses keep individuals on payroll during this economic downtown. The subsidy will be backdated to March 15, 2020. There has been no mention of any increases to the $1,375 cap per employee or the $25,000 cap per employer. The increase to 75% appears to give businesses quicker access to the subsidy. Additional details are expected to be announced next week.
Canada Emergency Business Account
The government also announced the new Canada Emergency Business Account which will provide eligible businesses with a $40,000 loan that will be guaranteed by the government. The loan will be interest free for first year and $10,000 of the loan amount will be forgiven for qualifying businesses. More details are expected to be released next week. Businesses will have to apply with their banks for this guaranteed loan. Please reach out to your financial institution next week when further details are announced.
GST/HST and Import Deferrals
GST/HST amounts due and imports and duties will be deferred until June 30, 2020. This appears to apply to any amounts due for March and onward.
Additional Tax Extensions
The Canada Revenue Agency has announced to Chartered Professional Accounts Canada that additional tax extensions will be granted to Canadian individual and businesses:
- Returns (including T2 corporate tax returns) that are due after March 18, 2020 will have their filing deadlines extended to June 1, 2020.
- Election forms, designations, responses to information requests due after March 18, 2020 are also extended to June 1, 2020.
- Trust, Partnerships and NR4 filings due after March 18, 2020 are extended to May 1, 2020. Previously only trusts with a December 31, 2019 tax year end were eligible for the extension. The extension is now available to all trusts
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 further information, don’t hesitate to reach out to us.
Get in touch by email: info@fazzaripartners.com or phone: 905.738.5758
