Covid-19 Economic Measures
Our office is continuing business as usual. We are following social distancing and primarily working remotely but can continue to provide our services in a seamless manner. We know that these are trying times for our clients, their employees and their families. We hope that you and your loved ones stay safe and healthy in the days and weeks ahead.
The deadline for filing 2019 T1 returns has been extended from April 30, 2020 to June 1, 2020. We are recommending that taxpayers continue to file their returns on a timely basis to ensure entitlement to the one-time GST and Canada Child Benefit, as well as to ensure tax refunds are not delayed. If your material is ready, please send it to our office via our secure transfer system which can be found on our website. CRA has also changed their policy to accept electronic signatures on the T183 authorization forms.
Summary of the Canadian Economic Response Plan
We have prepared a brief summary of the Economic Response Plan from the Department of Finance. This is a summary only and more details and particulars can be found on the Government of Canada website.
Income support for individuals who need it most
One-time Goods and Services Tax Credit for low and modest income families.
Increase to the maximum annual Canada Child Benefit payment amounts.
Six-month interest free moratorium on the repayment of Canada Student loans.
Reducing required minimum withdrawals from Registered Retirement Income Funds.
Flexibility for taxpayers on filing 2019 tax returns
Deferral of filing due date for individuals (other than trusts) to June 1, 2020.
Deferral of filing due date for trusts having a taxation year ending on December 31, 2019 to May 1, 2020.
The Canada Revenue Agency is also deferring until August 31, 2020 the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This applies to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
Flexibility for businesses filing taxes
All businesses allowed to defer until August 31, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This applies to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
Temporary income support for workers and parents
Those directly affected by COVID-19 will have streamlined ability to get EI quicker. Emergency Care Benefit providing up to $900 bi-weekly for up to 15 weeks.
Longer term income support for workers
Emergency Support Benefit to those that are not normally eligible for EI but face unemployment as well as an EI work sharing program for those employees that reduce their normal working hours.
Helping businesses keep their workers
Provide eligible small employers a temporary wage subsidy for three months equal to 10% of remuneration paid for that period up to certain thresholds.
Role of financial institutions and Mortgage default management tools
Banks in Canada have committed to working with customers to provide flexible solutions through these difficult times including up to a 6-month deferral for mortgages and potential relief in respect to other credit products.
Ensuring businesses have access to credit
Business Development Bank of Canada and Export Development Canada will provide additional support for small and medium-sized businesses.
As information becomes available, we will continue to provide updates including changes in assistance provided to small businesses.
The information in this publication is current as of March 19, 2020.
This publication has been carefully prepared; however, it was written in general terms and should not be seen as legal or tax advice. This publication should not take the place of professional advice specific to your own family circumstance. GGT Chartered Professional Accountants, its partners and employees do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken based on a decision made in relation to the concepts discussed in this publication.