What’s New

Updates from Burlington Tax Services

 COVID-19 Economic Response Plan

Government programs/announcements

With all of the recent information and announcements related to the COVID-19 pandemic, we have summarized some of the programs/information/announcements.  As changes are happening quickly, our summary may not always be up to date.  Please double check with the original source of the program/information/announcement:

New tax filing and payment due dates

The deadline for filing individual tax returns has been extended to June 1, 2020. Taxpayers will have until September 1, 2020 to pay any 2019 income tax amounts owed.

The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your income tax amounts owed is paid by September 1, 2020.

Outstanding balances owed to CRA

CRA will not be sending any Requirements to Pay (“RTP”) to employers. For RTPs currently in place, remittances are not required, until further notice. The CRA also requests that any RTPs that you may receive this week not be actioned.

Canada Emergency Response benefits

You will be able to apply for the new Canada Emergency Care benefits (“CERB”) in My Account (login at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html) or using the dedicated phone line starting April 2020.

The CERB will pay $2,000 a month for 4 months to individuals who have lost income because of the COVID-19.  Self-employed will qualify for this benefit as well.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Temporary wage subsidy for employers

The Government of Canada announced a Temporary wage subsidy for employers up to 75% of salary for a period of three months as long as the employer keeps employees employed.

In addition, effective from March 28, 2020, to June 20, 2020, eligible employers can reduce remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure only applies to remittances made to the Canada Revenue Agency (“CRA”).

Canada Emergency Business Account

The Government of Canada will provide interest-free loans of up to $40,000 to help cover your operating costs while your revenues have been temporarily reduced due to the economic impacts of the COVID-19 virus..

To qualify, businesses 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).

Export Development Canada and Business Development Bank

Both Export Development Canada (“EDC”) and Business Development Bank (“BDB”) are offering loan programs to help small and medium-sized businesses with operational cash flow requirements.  EDC and BDB will guarantee loans when businesses go to their financial institutions.

Find more information on tax measures to help support Canadians during the COVID-19 pandemic is available at https://www.canada.ca/en/services/benefits/ei.html.

Information sourced from www.canada.ca/en/revenue-agency/

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