COVID-19 Income Relief

Canada Emergency Response Benefit – begins April 6^th, 2020

·       This new benefit allows individuals to receive up to $2,000 per month for up to 4 months for workers who lose their income as a result of the COVID-19 pandemic.

·       You will be able to apply for this benefit at www.Canada.ca/coronavirus

**Do not need to re-apply here if you have already applied for EI.

Work – Sharing Program

·       Employees agreed to reduced work and to share available work.

·       Requires at least 2 employees.

·       Max period 76 weeks and must apply 30 days prior to requested start date.

The details available on this program are quite extensive and the application process is already available. Link for a step-by-step guide on how to apply for this program. https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html

Canada Child Benefit

·       The Canada Child Benefit is being increased by $300 per child for the year or an additional $25 per month per child. 

Increased GST Credit - payments will be issued April 9^th, 2020

·       Will get the extra payment amount automatically if you normally receive the GST/HST credit and have filed a 2018 tax return. If you were previously not entitled to the GST/HST credit, but have filed your 2018 tax return, you may also get the one-time credit amount based on your family net income.

·       Amount received will be calculated based on information from your 2018 income tax and benefit return. If you didn't file taxes for 2018, you won't receive this payment. If you're late in filing your 2018 taxes, you may be eligible for retroactive benefits and credits. The only way to get them is to file.

·       You don't have to file your 2019 taxes to receive this increased credit amount.  You do have to file your 2019 income tax and benefit return to ensure you continue to get your benefits and credits for the July 2020 to June 2021 benefit year. 

6-month Interest Free Moratorium on the Repayment of Canada Student Loans

·       For individuals currently in the process of repaying these loans from March 30^th to Sept 30^th, 2020.

Reduction of the Minimum Withdrawals from RRIFs by 25%  

Personal Tax Returns Do Not Need to be Filed until June 1^st, 2020

·       Income taxes owed are not due until August 2020.  Appears to apply to all taxpayers (Individuals, Corporations and Trusts). Also applies to instalment payments. No interest or penalties will accumulate during this period.

Trust Returns

·       Trust Returns with a year end of December 31^st, 2019 are not required to be filed until May 1^st, 2020.

Suspending Collections on New Debt

·       Collections activities on new debts will be suspended until further notice, and flexible payment arrangements will be available.

·       Contact the toll-free number 1-800-675-6184 between 8:00 a.m. and 4:00 p.m. your local time.

Taxpayer Relief Requests

·       Taxpayers unable to file a return or make a payment by the tax-filing and payment deadlines because of COVID-19, can request the cancellation of penalty and interest charged to their account. Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met.

·       For more information about taxpayer relief and how to make a request to the CRA to have interest and/or penalties cancelled, please go to Canada.ca/taxpayer-relief.

Don’t overlook your workplace or personal short term and long term disability programs. If you are sick and unable to work you may be eligible for disability payments under your disability plan. 

• Extending the work sharing program.
• Providing small business with wage subsidies
• Deferral of GST remittances to June 30^th, 2020 
• Interest free loans of up to $40,000 for small businesses and non-profits to support operations 
• Government guarantees of new operating credit term loans for small and medium sized businesses 
• CRA's suspending audit services, and other tax related policy adjustments

Extending the Work-Sharing Program

·       Extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.

·       The application process is already available. https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html

Providing Small Business with Wage Subsidies

·       Up to 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15^th, 2020. This will help businesses to keep and return workers to the payroll.

·       Apply through “My business account” on CRA’s website.

GST/HST Remittance Deferral

·       Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments deferred to June 30^th, 2020.

Access to Credit

Canada Emergency Business Account

Will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).

·       Interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced, due to the economic impacts of the COVID-19 virus.

·       Small businesses and not-for-profits should contact their financial institution to apply for these loans.

·       To qualify, will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31^st, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Loan Guarantee for Small and Medium Enterprises (SME’s)

EDC is working with financial institutions to issue new operating credit and cash flow term loans through financial institutions, of up to $6.25 million to SMEs.

Co-Lending Program for Small and Medium Enterprises

Business Development Bank of Canada (BDC), together with financial institutions, will co-lend term loans to SMEs for their operational cash flow requirements.

·       Eligible businesses may obtain incremental credit amounts up to $6.25 million. Eligible financial institutions will conduct the underwriting and manage the interface with their customers.

These programs will roll out in the three weeks after March 27^th. Interested businesses should work with their current financial institutions.

Administrative Tax Measures

In addition to the income tax filing and payment deadline extensions, unless otherwise noted, administrative income tax actions required of taxpayers by the CRA that are due after March 18^th, 2020, can be deferred to June 1^st, 2020. These administrative income tax actions include returns, elections, designations and information requests. Payroll deductions payments and all related activities are excluded.

Suspending audit activities

CRA will not initiate contact with taxpayers for audits, with certain exceptions. These include:

·       no new audits being launched

·       no requests for information related to existing audits; and

·       no audits should be finalized, and no reassessments should be issued.