New Loan Programs for Businesses
Canada Emergency Business Account (CEBA)
This program is designed for small businesses to have access to capital. It will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).
This $25 billion program 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 non-profits should contact their financial institution to apply for CEBA loans.
To qualify, these organizations must demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019, verifiable by Canada Revenue Agency documentation (a T4 summary of remuneration paid, or T4SUM). Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
On May 19, the eligibility criteria were expanded to include sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family- owned corporations that pay employees through dividends rather than payroll.
As part of the May 19 expansion, applicants with payroll lower than $20,000 can now qualify. They are required to have a business operating account at a participating financial institution; a Canada Revenue Agency business number, and to have filed a 2018 or 2019 tax return; and eligible non-deferrable expenses (such as rent, property taxes, utilities, and insurance) between $40,000 and $1.5 million.
The complete announcement from May 19 expanding CEBA can be found here: https://pm.gc.ca/en/news/news-releases/2020/05/19/prime-minister-announces- expansion-support-workers-and-small
Business Credit Availability Program (BCAP)
Last updated: May 20, 2020
The federal government has established a Business Credit Availability Program (BCAP) to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.
This program includes two elements, the Loan Guarantee for Small and Medium Sized Enterprises, and the Co-Lending Program for Small and Medium Sized Enterprises.
Loan Guarantee for Small and Medium-Sized Enterprises
This program provides credit and cash flow term loans to small and medium-sized enterprises. Canadian businesses in all sectors that were otherwise financially viable and revenue generating prior to the COVID-19 outbreak are eligible to apply. It allows financial institutions to issue operating credit and cash flow term loans of up to $6.25 million to existing clients, with 80 per cent guaranteed by EDC.
This money is to be used for operational expenses, not for dividend payouts, shareholder loans, bonuses, stock buyback, option issuance, increases to executive compensation or repayment/refinancing of other debt.
This program is now available at various financial institutions and credit unions.
Co-Lending Program for Small and Medium-Sized Enterprises
This program provides term loans for operational and liquidity needs of businesses, which could include interest payments on existing debt. Similar to the EDC program, this program is available to businesses that were financially viable and revenue- generating prior to the COVID-19 outbreak.
The program is designed in three segments to target support to different business sizes.
• Loans of up to $312,500 to businesses with revenues of less than $1 million.
• Up to $3.125 million for businesses with revenue between $1 million-$50 million.
• Up to $6.25 million for businesses with revenues in excess of $50 million.
Loans would be interest-only for the first 12 months, with a 10-year repayment period.
Application details will be made available through financial institutions.
Large Employer Emergency Financing Facility (LEEFF)
Last updated: May 20, 2020
LEEFF will provide bridge financing to Canada’s largest employers, whose needs during the pandemic are not being met through conventional financing, in order to keep their operations going.
This support will not be used to resolve insolvencies or restructure firms, nor will it provide financing to companies that otherwise have the capacity to manage through the crisis.
Employers must have a minimum of $300 million in revenue, are seeking a minimum of about $60 million in financing, significant operations/workforce in Canada, and not be involved in active insolvency. Companies in the financial sector are excluded, as are any companies convicted of tax evasion.
On May 11, the Prime Minister announced LEEFF and additional funding to BCAP, including loans of up to $60 million per company, and guarantees of up to $80 million.
The full release can be found here: https://pm.gc.ca/en/news/news- releases/2020/05/11/prime-minister-announces-additional-support-businesses-help- save
Regional Relief and Recovery Fund: COVID-19 (RRRF)
RRRF will provide a total of $962 million to mitigate the financial pressure experienced by businesses and organizations to allow them to continue their operations, including paying their employees, and to support projects by businesses, organizations and communities to prepare now for a successful recovery.
This initiative is implemented by the six regional development agencies. There are two components to RRFF:
• $675 million to support regional economies, businesses, organizations and communities in regions across Canada;
• $287 million to support the national network of Community Futures Development Corporations, which will specifically target small businesses and rural communities across the country.
More information on the RRRF program is available here: https://www.ic.gc.ca/eic/site/icgc.nsf/eng/h_07682.html
Last updated: May 20, 2020
New Business Subsidy Programs
The Canada Emergency Wage Subsidy (CEWS)
The goal is to help businesses keep and return workers to their payroll through the challenges posed by the COVID-19 pandemic. This would provide a 75 per cent wage subsidy to eligible employers for up to 24 weeks, retroactive to March 15, 2020.
Updates to the program were announced on May 15, including an extension of the program to August 29, 2020, allowing employers to use CEWS for up to 24 weeks (up from 12 weeks) as well as regulatory changes which have expanded the program to more businesses.
More details on these changes are coming soon. The full release from May 15 regarding the expansion of CEWS is available here: https://www.canada.ca/en/department-finance/news/2020/05/extending- eligibility-for-the-canada-emergency-wage-subsidy.html
Eligible Employers
Eligible employers would include individuals, taxable corporations, partnerships consisting of eligible employers, non-profit organizations and registered charities.
This subsidy would be available to eligible employers that see a drop of at least 15% of their revenue in March 2020 and 30% for the following months (see Eligible Periods). In applying for the subsidy, employers would be required to attest to the decline in revenue.
Calculating Revenues
An employer’s revenue for this purpose would be its revenue in Canada earned from arm’s-length sources. Revenue would be calculated using the employer’s normal accounting method.
Employers would be allowed to calculate their revenues under the accrual method or the cash method, but not a combination of both. Employers would select an accounting method when first applying for the CEWS and would be required to use that method for the entire duration of the program.
For registered charities and non-profit organizations, the calculation will include most forms of revenue, excluding revenues from non-arm’s length persons. These organizations would be allowed to choose whether or not to include revenue from government sources as part of the calculation. Once chosen, the same approach would have to apply throughout the program period.
Last updated: May 20, 2020
Amount of Subsidy
The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and August 29, 2020 would be 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week.
Employers will also be eligible for a subsidy of up to 75% of salaries and wages paid to new employees.
Eligible remuneration may include salary, wages, and other remuneration like taxable benefits. However, it does not include severance pay, or items such as stock option benefits or the personal use of a corporate vehicle.
A special rule will apply to employees that do not deal at arm’s length with the employer. The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of the lesser of $847 per week and 75% of the employee’s pre-crisis weekly remuneration. The subsidy would only be available in respect of non-arm’s length employees employed prior to March 15, 2020. There would be no overall limit on the subsidy amount that an eligible employer may claim.
Emergency Wage Subsidy Example: Bruno and Tisha run a floral shop in Winnipeg, Manitoba. They have four full‐time employees, each earning $800 per week, and 6 part-time employees, each earning $400 per week, for a total weekly payroll of $5,600. Bruno and Tisha have closed their shop and are only fulfilling online orders during this challenging period. They are keeping all of their employees on the payroll, paying them their full regular wages, despite their revenues being down by 30 per cent. Bruno and Tisha would be eligible for a weekly wage subsidy of $4,200 ($600 for each of their full-time employees and $300 for each of their part-time employees).
Eligible Periods
Eligibility would generally be determined by the change in an eligible employer’s monthly revenues, year-over-year, for the calendar month in which the period began.
All employers may calculate their change in revenue using an alternative benchmark to determine their eligibility. This would provide more flexibility to employers for which the general approach may not be appropriate. Under this alternative approach, employers would be allowed to compare their revenue using an average of their revenue earned in January and February 2020.
Employers would select the general year-over-year approach or the alternative approach when first applying for the CEWS and would be required to use the same approach for the entire duration of the program.
Last updated: May 20, 2020
The amount of wage subsidy received by the employer in a given month would be ignored for the purpose of measuring year-over-year changes in monthly revenues.
• For example, if revenues in March 2020 were down 20% compared to March 2019, the employer would be allowed to claim the CEWS on remuneration paid between March 15 – April 11, 2020.
• Alternatively, this employer could use its average revenue from the months of January and February 2020, instead of March 2019, to determine if it is eligible for the CEWS.
• Once an approach is chosen, the employer would have to apply it throughout the program period.
Here is a link to the CEWS calculator: https://www.canada.ca/en/revenue- agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html
The table below outlines each claiming period, the required reduction in revenue, and the reference period for eligibility. Periods for CEWS Calculation
Claiming
period
Required reduction
in revenue Reference period for eligibility
Period 1
March 15 to April 11
15% March 2020 over:
15% March 2020 over:
• March 2019 or
• March 2019 or
• Average of January and February 2020
Period 2
April 12 to May 9
30% April 2020 over:
30% April 2020 over:
• April 2019 or
• April 2019 or
• Average of January and February 2020
Period 3
May 10 to June 6
30% May 2020 over:
30% May 2020 over:
• May 2019 or
• May 2019 or
• Average of January and February 2020
Last updated: May 20, 2020
Eligible Employees
An eligible employee is an individual who is employed in Canada.
Eligibility for the CEWS of an employee’s remuneration, will be limited to employees that have not been without remuneration for more than 14 consecutive days in the eligibility period (i.e., from March 15-April 11, from April 12-May 9, and from May 10-June 6).
This rule replaces the previously announced restriction that an employer would not be eligible to claim the CEWS for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit.
How to Apply
Eligible employers would be able to apply for the CEWS through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.
Interaction with 10% Wage Subsidy
On March 25, 2020, the COVID-19 Emergency Response Act, which included the implementation of a temporary 10% wage subsidy, received Royal Assent. For employers that are eligible for both the CEWS and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the CEWS in that same period.
Interaction with the Work-Sharing Program
On March 18, 2020, the Prime Minister announced an extension of the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.
For employers and employees that are participating in a Work-Sharing program, EI benefits received by employees through the Work-Sharing program will reduce the benefit that their employer is entitled to receive under the CEWS.
Last updated: May 20, 2020
Comparison of the Two Wage Subsidy Programs
The 10% Wage Subsidy Canada Emergency Wage Subsidy
Coverage period 90 days (March 18 to June 19) 12 weeks (March 15 to June 6)
Rate 10% of the wages of each employee 75% of the wages of each employee
Wages baseline The 10% subsidy is calculated based
on how much the employee receives in wages in the current period.
The 75% subsidy is calculated based on the amount “normally earned by employees”.
Eligible remuneration may include salary, wages, and other remuneration like taxable benefits. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of the employee’s income tax obligation. However, it does not include severance pay, stock option benefits or the personal use of a corporate vehicle.
Maximum subsidy per employee
$1,375 $10,164
Maximum subsidy per employer
$25,000 No limit
Eligible businesses
Businesses eligible for the Small Business Deduction
Not-for-profit organizations
Charities
Any employer, except the public sector
Any employer, except the public sector
Must see a drop of least 15 per cent of revenue in March 2020 and 30 per cent for the following months (see Eligible Periods). In applying for the subsidy, employers would be required to attest to the decline in revenue.
Must see a drop of least 15 per cent of revenue in March 2020 and 30 per cent for the following months (see Eligible Periods). In applying for the subsidy, employers would be required to attest to the decline in revenue.
Top-up required? Yes, legislation suggests that it
would be.
No, but the employer will have to attest they are doing everything they can to try.
Mechanism The subsidy is a deduction on the
corporation’s remittances to the CRA.
Online through CRA’s My Business Account portal, soon to be launched.
Last updated: May 20, 2020
Ensuring Compliance
Employers will be required to repay amounts paid under the CEWS if they do not meet the eligibility requirements. Penalties may apply in cases of fraudulent claims. The penalties may include fines or even imprisonment. In addition, anti-abuse rules would be put in place to ensure that the subsidy is not inappropriately obtained and to help ensure that employees are paid the amounts they are owed.
Employers that engage in artificial transactions to reduce revenue for the purpose of claiming the CEWS would be subject to a penalty equal to 25% of the value of the subsidy claimed, in addition to the requirement to repay in full the subsidy that was improperly claimed.
Government Assistance
The usual treatment of tax credits and other benefits provided by the government would apply. As a consequence, the wage subsidy received by an employer would be considered government assistance and be included in the employer’s taxable income.
Assistance received under either wage subsidy would reduce the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration.
Refund for Certain Payroll Contributions
As part of the CEWS, employers can claim a 100% refund for the employer-paid part of contributions made on behalf of eligible employees who are furloughed (on leave with full or partial pay) for any full week in the claim period, and for which the employer is eligible to claim the CEWS for those employees.
These employer-paid contributions include: Employment Insurance (EI), Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Quebec Parental Insurance Plan (QPIP).
In general, an employee will be considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund would not be available for eligible employees that are on leave with pay for only a portion of a week.
This refund would not be subject to the weekly maximum benefit per employee of $847 that an eligible employer may claim in respect of the CEWS. There would be no overall limit on the refund amount that an eligible employer may claim.
For greater certainty, employers would be required to continue to collect and remit employer and employee contributions to each program as usual. Eligible employers would apply for a refund, as described above, at the same time that they apply for the CEWS.
Last updated: May 20, 2020
Canada Emergency Commercial Rent Assistance (CECRA)
The federal government has reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will result in lowering rent by 75% for small businesses that have been affected by COVID-19.
The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent.
Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID revenues. This support will also be available to non-profit and charitable organizations.
Applications will be open beginning on May 25, 2020. More information on how to apply with CMHC for CECRA, as well as FAQs, is available here: https://www.cmhc- schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
Last updated: May 20, 2020
New Programs for Individuals
Canada Emergency Response Benefit (CERB)
If you stopped working because of COVID-19, the Canada Emergency Response Benefit (CERB) may provide you with temporary income support. The CERB provides $500 a week for up to 16 weeks. Any EI applications after March 15 where the applicant is also eligible for CERB will be automatically moved over to CERB.
How to Apply
Applications started April 6 through one of two ways:
1) Online through CRA MyAccount: With direct deposit, CRA has said payment can
be expected in 3 business days from the completion of your application. Payment by cheque can be expected to take up to 10 business days. 2) Telephone: 1-800-959-2019 or 1-800-959-2041
You will be required to re-attest once a month to continue receiving CERB. More information is available at the following link: https://www.canada.ca/en/revenue- agency/services/benefits/apply-for-cerb-with-cra.html
Eligibility for CERB
The benefit will be available to workers:
• Residing in Canada, who are at least 15 years old;
• Who have stopped working because of reasons related to COVID-19 and have not voluntarily quit their job;
• Did not apply for, nor receive, CERB or EI benefits from Service Canada for the same eligibility period;
• Who had income of at least $5,000 (employment income, self-employment income, or provincial/federal benefits related to maternity or paternity leave) in 2019 or in the 12 months prior to the date of their application; and
• Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment or self-employment income.
On April 15, the government announced changes to the eligibility rules to:
• Allow people to earn up to $1,000 per month while collecting the CERB.
• Extend the CERB to seasonal workers who have exhausted EI regular benefits and are unable to undertake regular seasonal work as a result of COVID-19.
• Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19.
Last updated: May 20, 2020
The changes announced on April 15 will be retroactive to March 15, 2020.
The federal government will be working with provinces and territories to cost-share a temporary top-up to the salaries of workers deemed essential in the fight against COVID-19, who make less than $2,500 a month. Details will be released shortly following further work with provinces and territories.
For those receiving dividends, you are eligible to claim CERB if the dividends are “non- eligible dividends” (generally, those paid out of corporate income taxed at the small business rate).
An individual could count this dividend income toward the $5,000 income requirement to be eligible for CERB.
Eligibility periods are fixed in 4-week periods, and are outlined below:
4-week period cycle Period dates
1 March 15, 2020 to April 11, 2020
2 April 12, 2020 to May 9, 2020
3 May 10, 2020 to June 6, 2020
4 June 7, 2020 to July 4, 2020
5 July 5, 2020 to August 1, 2020
6 August 2, 2020 to August 29, 2020
7 August 30, 2020 to September 26, 2020
Self-employed and independent workers who meet all other eligibility requirements are eligible for this benefit.
In determining their eligibility for the Canada Emergency Response Benefit:
• Owners who take a salary from their business should consider pre-tax salary;
• Owners who rely on business income should consider net pre-tax income;
• Owners who rely on dividend income should consider this as self-employment income provided it comes from “non-eligible dividends”
If an individual’s situation continues, they can re-apply for CERB for multiple 4-week periods, to a maximum of 16 weeks (4 periods).
To speak with an agent about CERB, or CRA My Account: 1-800-959-8281
For more information please refer to the question & answer page for CERB here: https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html
Last updated: May 20, 2020
Issue of Potential Double Payments
For the stream of clients who applied for benefits through Service Canada/EI since March 15, the department is leveraging the existing EI payment systems to deliver CERB payments to these clients. To ensure timely payment to these clients, the approach for these clients is as follows:
• All clients who meet the CERB criteria (regular and sickness benefit applicants, with a claim that start March 15th onward) are being provided with an initial payment of $2,000.
• Going forward, these clients should continue to complete their bi-weekly reports.
• These bi-weekly reports act as the means by which clients indicate their continued need for the benefit.
The system will then ensure that combined, these clients will receive the equivalent of 16 weeks of benefits at $500 per week for a total of $8,000.
As a result of this approach, clients with a claim established March 15 or March 22 and who have already completed their regular bi-weekly reports may have received both the $2,000 initial payment and $1,000 based on the cards they submitted
Last updated: May 20, 2020
Canada Emergency Student Benefit (CESB)
On April 22, the federal government announced new proposed measures to support students and post-graduates.
The Canada Emergency Student Benefit will provide $1,250 per month for eligible students, or $2,000 per month for eligible students with dependents or disabilities. The benefit would be available from May to August 2020.
As well, the government announced the creation of the Student Service Grant, for students who help by volunteering in their communities during the COVID-19 pandemic. For students who choose to do national service and serve their communities, the new Canada Student Service Grant will provide up to $5,000 for their education in the fall.
More details on these programs are available here: https://www.canada.ca/en/department-finance/news/2020/04/support-for-students-and- recent-graduates-impacted-by-covid-19.html
Support for Canadian Seniors
On May 12, 2020, the Prime Minister announced new measures for seniors. These measures include:
• Providing a one-time tax-free payment of $300 for seniors eligible for the Old Age Security (OAS) pension, with an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS).
• Expanding the New Horizons for Seniors Program with an additional investment of $20 million to support organizations that offer community-based projects that reduce isolation, improve the quality of life of seniors, and help them maintain a social support network.
• Temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been assessed.
The full release is available here: https://pm.gc.ca/en/news/news- releases/2020/05/12/prime-minister-announces-additional-support-canadian-seniors
Last updated: May 20, 2020
CRA Deferrals – Income Tax Filing & Payment
Deferral of GST Sales Tax Remittance
Deferral of Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020.
CRA will extend until June 30, 2020 the time that:
• Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
• Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
• Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.
Deferral of Customs Duty and Sales Tax for Importers
Imported goods by businesses are generally subject to the GST, at a rate of 5 per cent, as well as applicable customs duties, which vary by product and country of origin. While most imports enter Canada duty-free, some tariffs remain, especially on consumer goods. Payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.
More in depth details on filing and payment due dates are on the following pages.
Last updated: May 20, 2020
Individuals – Due dates
Filing date for 2019 tax year
June 1, 2020 extended
Payment date for 2019 tax year
September 1, 2020 extended Includes the June 15, 2020, instalment payment for those who have to pay by instalments.
Self-employed & spouse/common law partner – Due dates
Filing date for 2019 tax year
June 15, 2020 unchanged
Payment date for 2019 tax year
September 1, 2020 extended Includes the June 15, 2020, instalment payment for those who have to pay by instalments.
Corporations – Due dates
Filing date for current tax year
June 1, 2020 extended Applies to corporations that would otherwise have a filing due date after March 18 and before June 1, 2020.
Payment date for current tax year
September 1, 2020 extended Applies to balances and instalments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, 2020.
Last updated: May 20, 2020
Trusts – Due dates
Filing date for current tax year (including the associated T3 information return)
May 1, 2020 extended Applies to trusts with a tax year end date of December 31, 2019 June 1, 2020 extended Applies to trusts that would otherwise have a filing due date in April or May.
Payment date for current tax year
September 1, 2020 extended Applies to income tax balances and instalments due on or after March 18 and before September 1, 2020
Charities – Due dates
Filing date December 31, 2020 extended
Applies to charities with Form T3010 due between March 18, 2020 and December 31, 2020
Payment date Not Applicable
Part XIII non-resident tax – Due dates
Filing date for the 2019 NR4 information return
May 1, 2020 extended
Payment date The 15th of each month following an
amount paid or credited by residents of Canada to non-resident persons. unchanged
Payroll remittances – Due dates
Payment date See Payroll page for filing deadlines. unchanged
Last updated: May 20, 2020
Information returns
Filing date for the 2019 T5013 Partnership Information Return
May 1, 2020 extended
Filing date for the 2019 NR4, Statement of Amounts Paid or Credited to Non- Residents of Canada information return
May 1, 2020 extended
Other information returns June 1, 2020 extended
Applies to other information returns that would otherwise be due after March 18, 2020, and before June 2020.
CRA Administrative Measures
• Collections activities on new debts suspended until further notice, and flexible payment arrangements will be made available.
• CRA will generally not contact SME businesses to initiate any post assessment GST/HST or income tax audits until further notice, and interaction with taxpayers will be limited to high risk and exceptional cases.
• Objections related to Canadians’ entitlement to benefits and credits have been identified as a critical service and should not experience any delays.
• For objections related to other tax matters filed by individuals and businesses, the CRA is currently holding these accounts in abeyance. No collection action will be taken with respect to these accounts at this time.
• For objections that are due March 18, 2020 or later, CRA is are effectively extending the deadline to June 30, 2020.
• Appeals before the Tax Court of Canada (TCC) have been ordered an extension of all timelines. More information can be obtained directly from TCC.
• 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.
Last updated: May 20, 2020
Additional Targeted Funding & Initiatives
The government has announced additional targeted funding and measures, aimed at various sectors and particular groups. Some of these initiatives still have details that need to be announced, however they include:
• Temporary salary top-up for low-income essential workers ($3 billion)
• Indigenous community funding for immediate needs, public health, personal hygiene, nutrition, post secondary students
• Support to those in need, including improved access to food support, addressing homelessness, women & children fleeing violence, essential service delivery
• For seniors, reduced RRIF minimum withdrawals, supporting delivery of items and personal outreach, immediate and essential services support
• Additional access to credit for rural businesses & communities, early-stage businesses through IRAP, young entrepreneurs, businesses in the territories, SMEs ineligible for current measures (through regional development agencies)
• Youth supports, including youth employment & skills strategy, enhanced work placements, changes to Canada Summer Jobs
• Sector specific support:
o Agriculture, agri-food, aquaculture, and fisheries (increased credit &
funding, access to PPE, increases to AgriStability & AgriInsurance, redistributing existing & unsold inventory) o Cultural, heritage and sports (Emergency Support Fund) o Air transportation (waive ground lease rents, increased support for supply
of goods to Northern & remote communities) o Tourism (deferring payment of commercial leases with government) o Energy (orphan well cleanup, emission reduction fund) o Non-profit & charitable (Emergency Community Support Fund)
More information on these initiatives, and all updates to other existing emergency support programs, can be found here.
Last updated: May 20, 2020
Resources
General COVID-19 Federal Program Information: https://www.canada.ca/en/department-finance/economic-response-plan.html
CEWS Main Page: https://www.canada.ca/en/revenue- agency/services/subsidy/emergency-wage-subsidy.html
CEWS Additional Details: https://www.canada.ca/en/department- finance/news/2020/04/additional-details-on-the-canada-emergency-wage- subsidy0.html
CRA Measures: https://www.canada.ca/en/revenue-agency/campaigns/covid-19- update.html
CERB Application: https://www.canada.ca/en/revenue-agency/services/benefits/apply- for-cerb-with-cra.html
CERB Questions & Answers: https://www.canada.ca/en/services/benefits/ei/cerb- application/questions.html
Canada Emergency Business Account (CEBA): https://ceba-cuec.ca/
Business Credit Availability Program (BCAP): https://www.canada.ca/en/department-finance/programs/financial- sector-policy/business-credit-availability-program.html
COVID-19 Business Calculator (determine which you are eligible for): https://innovation.ised-isde.canada.ca/s/?language=en
CECRA Main Page: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19- cecra-small-business
Contact Information
Anton Sestritsyn, Manager of Community Relations Anton.Sestritsyn@parl.gc.ca
Last updated: May 20, 2020
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