The most important thing to remember is we are all in this together.
Our priority remains to be the safety and well-being of our team members and our clients. We have closed our front door but remain fully operational via online systems. You may book a phone call or a video meeting by using our online booking app. We are able to share documents through our secure Client Portal.
If you are currently not a client but require tax services please reach out to our office so that we may provide assistance.
More details of the government response can be found here:
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Personal Tax Returns – (no business schedule)
Due date: June 1, 2020.
Taxes Owing: August 30, 2020
Pro Tip: File early, this will help determination of your eligibility for the GST/HST credit, Canada Child Benefit and other provincial rebates, as well as the new CERB benefit (see below). These credits and benefits are based on personal tax filings.
Personal Tax Returns – (business schedule)
Due date: June 15, 2020 (no change)
Taxes Owing: August 30, 2020
Corporate Income Tax Returns
Due date: No Change, returns are due 6 months after the corporation’s fiscal year-end.
Taxes owing: Any tax payment that becomes owing on or after March 18 and before September 1, 2020, is deferred until August 30, 2020. This includes balances owing and installment payments.
Due Date: June 30, 2020 for:
Monthly filers: for the February, March and April 2020 reporting periods;
Quarterly filers: January 1, 2020 through March 31, 2020 reporting period;
Annual filers, whose GST/HST return or installment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.
Trust Tax Return
Due Date: May 1, 2020
Taxes owing: September 1, 2020 (if owed between Mar. 19 and Aug. 31, 2020)
Administrative tax measures
Unless otherwise noted, administrative income tax actions required of taxpayers by the CRA that are due after March 18, 2020, can be deferred to June 1, 2020 including returns, elections, designations and information requests.
Pro Tip: Payroll deductions payments and all related activities are excluded.
Business - Wage Subsidy 10% & Wage Subsidy 75%
The previous 10% wage subsidy that was announced for small businesses is still available. You may take advantage of this program by reducing your payroll source deductions. Many of the payroll providers such as ADP have been able to calculate this on your behalf. However, if you require assistance, please contact our office.
For more details click: Click Here
The Federal government announced an additional wage subsidy of 75%. This has very different parameters and will be available to all businesses who have recognized a 30% decrease in revenue due to Covid-19. The government will subsidize up to 75% on the first $58,700 of employee salaries ($44,025 per employee or $847 per week).
Payments will be made directly to businesses by CRA through electronic payments via “My Business Account” and may be available within 3-6 weeks. To visit “My Business Account” Click Here
For full details on the 75% program: Click Here If you require assistance in calculating the subsidy, please contact our office.
Pro Tip: It is important to note that the 75% wage subsidy has not passed legislation (its not law). There are likely to be anti-avoidance rules associated with the legislation to “game” the system. We anticipate heavy audit activity regarding this program with heavy penalties to those who falsify their records.
Pro Tip: The current releases do not discuss whether the 30% reduction in revenues include associated groups. Since entities are considered separate employers for tax purposes, it may be reasonable to view each companies’ eligibility on a case-by-case scenario.
Pro Tip: The 10% wage subsidy will reduce the amount of payment received from the 75% wage subsidy if a company is eligible for both.
Personal - Canada Emergency Response Benefit (CERB)
The government will provide a taxable payment of $500 per week ($2,000 per month) for up to 16 weeks to those who have shortage of work due to COVID-19. Qualifying for this payment is wide spreading, for more details Click Here
Application will be available April 6-9th depending on the month you were born. If eligible you will be able to apply through the CRA MyAccount secure portal, your secure My Service Canada Account or over the phone.
Pro tip: If you have not yet registered we recommend you do so now: Click Here
Mortgage / Debt payments
Banks have committed to deferring the mortgage payments of impacted Canadians on a case-by-case basis. During the deferral period, interest will continue to accrue, (HLOC interest will have to be paid) so your payments will be slightly higher after the deferral period ends. You will pay more interest over the life of your mortgage, but a deferral will help with your short-term cash flow. Also, there is some discussion regarding how this may affect your credit score on a go forward basis.
Pro tip: In times of uncertainty, cash is king. Take a deferral if you believe you will need it. Call your bank as soon as possible.
Business - New Loan Programs for Businesses
The new Canada Emergency Business Account will provide 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, these organizations 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, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
Pro tip: This loan is administered by the financial institutions. Call your banker for more details.
Business - Co-Lending Business Program
Business Development Bank of Canada (BDC) is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
Canada Child Benefit
If eligible for the CCB, you will get a one-time extra payment of $300 per child in May 2020.
Pro Tip: No action required!
GST credit payment amounts
If eligible for the GST credit, the average increased payment will be close to $400 for single individuals and close to $600 for couples.
Pro Tip: No action required!