UPDATED: News Update – Canadian Tax Actions – Taxes | Instant News


UPDATED: News Update – Canadian Tax Actions

To print this article, all you need is to register or login at Mondaq.com.

The Canadian government has announced steps to support
Canadian and Canadian businesses from the economic impact
COVID-19. Steps include filing taxes / taxes
extension of dispute deadlines, as well as economic support through
credit emergency benefits for workers and credit and financing
choice for Canadian businesses.

Extensions – Returns / Archiving

Individual (not self-employed)

The deadline is extended to 1 June 2020 from 30 April 2020.

The deadline for outstanding balances is extended from 30 April 2020 to September
1, 2020. This includes installment payments that are usually due in June
15, 2020 for those who pay in installments.

Fines and interest will not be assessed if the amount is due
paid no later than September 1, 2020.

Individuals (entrepreneur and spouse / customary law)

The deadline remains June 15, 2020.

The deadline for outstanding balances is extended from 30 April 2020 to September
1, 2020. This includes installment payments that are usually due in June
15, 2020 for those who pay in installments.

Fines and interest will not be assessed if the amount is due
paid no later than September 1, 2020.


The deadline is extended to June 1, 2020 for companies that want
if you don’t have a filing due date after March 18 and before June 1,

The deadline for balances due to an extension is extended to September 1, 2020 to
company balances and installments due on or after March, 18 and
before September 1, 2020.

The penalty will not be assessed if the amount is to be paid by
September 1, 2020.

Trust and Estate Returns

The deadline is extended to Mary 1, 2020 from 30 March 2020 for guardianship
and plantations with 31 December 2019 ending the year.

The deadline is extended to June 1, 2020 for that and that trust
otherwise it will have a due date for submission in April or May 2020.

The due date for the outstanding balance is extended until September 1, 2020 as income
tax balances and installments due on or after March 18 and before
September 1, 2020.

Partnership Returns

Deadline extended until May 1, 2020 for partnership with a
original deadline 31 March 2020.

N / A

Non-resident Information Returns for Amount Credited or Paid to

The deadline is extended to 1 May 2020 from 31 March 2020.

Your outstanding balance is still 15th days of the month
following the month the amount credited or paid to a
non resident.

GST / HST returns

The filing deadline has not changed; however, CRA has
confirmed it will not impose a sentence where returns are submitted too late
as long as it is submitted on 30 June 2020, and XRA will not
process the paper again until the operation returns. CRA is
“encourage” registrants to apply online.

Monthly archive: amounts collected for February, March and April
The 2020 reporting period is extended to 30 June 2020.

Quarterly Reporting: amounts collected for January 1, 2020
until 31 March 2020 the reporting period is extended to 30 June

The annual reporter, whose GST / HST installments are due in March,
April, or May 2020, must send the amount collected and payable
previous fiscal year (and GST / HST installments in respect of
current fiscal year filer) no later than 30 June 2020.

Extension – Tax Dispute / Audit


CRA will not initiate contact with taxpayers for audits.

Some exceptions might include limited risks and cases of exclusions or
high risk GST / HST claim return cases that require contact
before being paid.

CRA generally will not contact small or medium (SME)
business to start post-valuation GST / HST or income tax
audit until the end of April, at least.

There are no requests for information related to existing audits
created, and no audit will be completed.


There is no reassessment that must be issued until the end of April, at

Any objections related to Canadians’ rights to benefits
and credit has been identified as an important and will service
continue to process.

All other objections related to other tax issues raised by
individuals and businesses will be arrested. There is no collection
action will be taken.

The deadline for filing an objection or request is related to March
18 or newer is effectively extended to 30 June 2020.


The collection of new debt will be deferred further
pay attention to.

Financial institutions and entrepreneurs do not need to obey or
submit to the existing Terms for Paying (RTP) for at least up to
end of April, and maybe until May.

tax Court

The Tax Court has canceled the court’s decision and conference
call until May 1, 2020. Time has stopped running for the destination
calculate deadlines with the Tax Court. Tax Court has
then ordered that the Tax Court be closed until further
pay attention to.

Actions for the Company

Canadian Emergency Wage Subsidies

The Canadian government announces 75% wage subsidies
businesses that meet requirements for up to three months, apply retroactively until March
15, 2020.

Canadian Emergency Wage Subsidies will apply at a rate of 75%
of the first $ 58,700 that an employee normally obtains, is equivalent to a
benefits of up to $ 847 / week. There is no overall limit for
the amount of subsidies that can be claimed by eligible employers. However, whatever it is
the amount received by the qualified employer will be considered taxable

Canadian Emergency Wage Subsidies will not be tied to the employer
reduction of salary sources; this number will continue to be
must be deducted from employee salaries and sent to

Employers who meet conditions that suffer a decrease in gross income by
at least 15% in March and / or 30% in April, or May, when compared to
the same month in 2019, or the January and February averages
2020, will be able to access subsidies. Every month it should
independently inspected to determine whether the employer meets the requirements. If
so the employer has to reapply for subsidies every month.
Earnings for this purpose come from businesses run in Canada and Canada
obtained from a source of arm length.

“Eligible Entrepreneurs” includes all entrepreneurs other than
public sector entities, namely municipalities, regional governments, etc.
This includes companies, partnerships, and sole owners,
without the requirement that the entity be Canadian controlled
private companies that qualify for small business reduction.
Nonprofits and charities that suffer income losses will
assessed on a case by case basis for eligibility.

The right of employers who qualify for wage subsidies will be
based entirely on salary / wages actually paid to employees,
and all employers are expected to at least make the best effort
to increase salary up to 100% of the maximum wage covered.

Subsidies will be accessed by registering through CRA online

Entrepreneurs who do not qualify for subsidies can continue
qualify for a temporary 10% wage subsidy program, if applicable,
paid from March 18 to June 20, up to a maximum subsidy of
$ 1,375 / employee and $ 25,000 / employer.

The employer has no right to claim subsidies
remuneration is paid to employees who have not been without it
remuneration for more than 14 consecutive days in eligibility
period (4 week period).

Sanctions can apply in case of fraudulent claims. Anti-abuse
regulations will be proposed to ensure that subsidies do not
improperly obtained and to ensure that employees are paid
the amount they owe.

Temporary Wage Subsidies for Entrepreneurs

Before the release of Canadian Emergency Wage Subsidies,
The Canadian government released temporary measures for entrepreneurs
referred to as Temporary Wage Subsidies for Entrepreneurs.
The current law on wage subsidies is recent
passed in Parliament.

Temporary subsidies are a three-month size to allow for eligibility
employers to reduce the amount of salary deduction requested
sent to CRA.

Entrepreneurs include individuals (not trusts), paying partnerships
salary, wages, or bonuses for employees, registered non-profit organizations
charities and Canadian-controlled private companies are eligible
for small business reduction.

Temporary wage subsidies are limited to 10% of remuneration
paid by qualified employers between March 18 2020 and June 20,
2020. There is a cap per employee of $ 1,375 and a maximum total
$ 25,000 subsidy per employer. CCPC related to
each other has their own $ 25,000 limit which is not required

Eligible employers can reduce their income tax portion
payroll when they make their first remittance
remuneration is paid after March 17, 2020, or they can choose not to
reduce their current salary payments and instead count
total temporary wage subsidies that qualify and
request payment to them at the end of the tax year or
transferred to their salary remittance account in 2021.

Working Capital Loan – COVID-19

New assistance measures for eligible businesses include:

– working capital loans from the Business Development Bank of PT
Canada (“BDC”) up to $ 2 million on condition and flexible
payment delays of up to six months for qualifications

– deferred payments are for existing BDC clients with total BDC
loan commitments of $ 1 million or less

– loans require GSA and personal guarantees with ownership

Business Credit Availability Program (“BCAP”)

Canadian Emergency Business Accounts Program

The Canadian government has announced a new launch
Canadian Emergency Business Account, which will be implemented by
financial institutions that meet the requirements in cooperation with exports
Canadian Development (“EDC”).

The $ 25 billion program will provide an interest-free loan of up to
up to $ 40,000 for small and non-profit businesses, to help cover
operating costs while their income has been reduced for
COVID-19 crisis.

Small businesses can apply for loans without interest up to
$ 40,000, generated from small business finance
the institution. To be eligible, each applicant must demonstrate that they are
pay between $ 50,000 and $ 1 million in total salary in 2019.

Full loan repayment before 31 December 2022 will occur
in loan forgiveness of 25% of the outstanding loans, subject to a
close $ 10,000.

Business Credit Availability Program (“BCAP”)

Small and Medium Business Loans and
Guarantee Program

EDC guarantees up to$ 20 billion
in new operating credit and cash flow terms
loans issued by financial institutions for Small and Medium Enterprises
Effort. Every loan limited to $ 6.25
with EDC guarantee 80% of each loan. Loan
must be paid in one year.

BDC to issue additional credit to meet Small and Medium requirements
Companies up to $ 6.25 million per Small and Medium qualify
Enterprise, together with financial institutions. BDC will finance
80% of the loan with the remaining 20% ​​comes from finance
institution. This joint loan arrangement will form
an additional $ 20 billion in financing available to Small and Medium Enterprises

Small and Medium Enterprises that meet the requirements can use it
up to $ 12.5 million through these two loan streams. Application for
done through the existing Small or Medium Enterprises
other financial or official financial institutions
the institution.

Actions for Individuals

Increased Employment Income (“EI”) Disease
The benefits

Benefits of Pain EI provides income for up to 15 weeks
reimbursement and is available for claimants who meet the conditions that cannot be
to work because of illness, injury, or quarantine, to enable them
time to restore their health and return to work.

Quarantine Canadians can apply for EI Sickness
The benefits. One week waiting period for EI Sickness benefits
released to new prosecutors quarantined so they can be paid
for the first week of their claim.

Individuals who claim the benefits of EI due to quarantine will do so
do not have to provide a medical certificate. Those who are not able
complete their claim for EI pain benefits because quarantine can
submit later and their EI claim is deferred to cover the period

Benefits of Canadian Emergency Response (“CERB”)

CERB is a tax benefit that will have an impact on Canada
COVID-19 with $ 2,000 per month for the next four months. CERB
will be paid every four weeks. That
the program is set to expire
on October 3, 2020.

Benefits apply to any Canadian over the age of 15,
which is a resident in Canada in 2019 and who has a total income of
at least $ 5,000 from work or self-employment in 2019 or
in 12 months immediately before their application. Someone
will be eligible if it does not work for reasons related to COVID-19
for at least 14 consecutive days in a four week application

Reasons for stopping work or leaving work include
illness, quarantine, care, stay at home to be treated
children dropping out of school or day care or sick or missing family members
profession. Leave workers, those who are still technically
employed but not receiving income, will also qualify for
the benefits. Benefits will include wage earners, contract workers and
self-employed individuals who will not be eligible for the opposite
EI Apart from that, people are still working but not
receive income due to disruption of their work situation as a result
COVID-19 will also be eligible.

A person cannot receive EI (or other income) benefits and
CERB for the same period. Those who have received EI
Regular and sick benefits do not apply to CERB. Where
someone has applied for EI benefits but their application hasn’t
has been processed, an application for CERB must be made. If
eligible for EI benefits, this will be received after four
month of CERB benefits.

Canadians who haven’t registered for federal income support will
can decide whether to submit a CERB or EI based on which
can offer more financial support. Unlike EI, CERB is not bound
for previous recipient’s work income. All recipients
must be paid $ 2,000 per month.

When individual income rises, CERB becomes less
interesting. The maximum payment based on CERB, of $ 500 a week, is
less than the top EI weekly payment of $ 572. Previously employed
annual income exceeds $ 47,272, they will be better off collecting
Benefits of EI compared to CERB.

Someone has to make an application to collect CERB
every four week period. CERB payments will be made within ten days
application. The application must be made no later
2 December 2020. A portal for online applications will open
CRA website Monday, April 6, 2020. Applications can also be
made by telephone (1-800-959-2019
or 1-800-959-2041).

The content of this article is intended to provide general information
guide to this problem. Specialist advice should be sought
about your specific situation.

POPULAR ARTICLES ON: Taxes from Canada

COVID-19: Temporary Wage Subsidies for Entrepreneurs

Crowe Soberman LLP

The Federal Government has announced several COVID-19 assistance packages for individuals and businesses that include increased Employment Insurance (EI), extended deadlines for certain income tax returns …

COVID-19 And Tax Filing And Payment Due Date

Torkin Manes LLP

In response to the pressures and difficulties experienced by Canadian taxpayers during the COVID-19 outbreak, the Government of Canada has announced an extension of time for certain taxpayers to comply with income tax filing and payment obligations.


image source

to request modification Contact us at Here or [email protected]