Keeping you informed even while closed
Although our office is closed to the public in accordance with social distancing, we are here to keep you informed about the latest developments regarding your taxes.
First, a reminder that you can communicate with us by using Sync.com to receive and send data securely and privately. Sync.com can be used in place of email for transferring sensitive financial documents. To send us files securely please use this link.
Extended Tax Deadlines
This week, the federal government announced tax filing deferrals as follows (all 2020):
Normal Filing Date Extended Date
Individuals (T1) April 30 June 1
Self-Employed June 15 June 15
Trusts (T3) December year ends March 31 May 1
There is no tax filing deferral for corporations’ tax returns (T2) or for GST/HST and payroll tax returns.
The government is allowing taxpayers to defer tax payments that are due after March 18th and before September until after August 31. This includes income tax owing from the 2019 taxation year as well as income tax instalment payments.
Proposed Emergency Aid Programs
The federal government announced the following programs that are intended to help taxpayers.
Emergency Care Benefit
This will provide $900 every two weeks for up to 15 weeks income support to workers including the self–employed who are taking care of a sick family member and parents with children who have to stay home and don’t qualify for paid sick leave or employment insurance.
Emergency Support Benefit
This program will provide support to workers who are not eligible for employment insurance and who are facing unemployment.
To qualify, you have to meet the eligibility requirements and then confirm that you are still eligible every two weeks.
There are three ways to apply:
Through your online CRA My Account
Through your online My Service Canada Account, or
Calling in to an automated phone application.
You are encouraged to use the online options (#1 & #2) as it’s difficult to get through on the phone. We suggest you register as early as possible because the longer you wait to register, the longer it will take to receive the benefits.
For the Employers
The federal government is proposing temporary wage subsidies for a period of up to three months. These subsidies will only be available to those who qualify for the small business deduction under the Income Tax Act. The subsidy will be equal to 10% of the wages paid to an employee during the three month period up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Also, the government will allow employers to reduce their remittance of income tax withheld on their employees’ paycheques.
Additional Small Business Support
The Business Development Bank of Canada and Export Development Canada may provide more support for small businesses. No details have been provided at this time but there may be substantial time and costs involved in the application process.
Other Targeted Tax Relief
There are some adjustments to existing programs.
There is a one-time increase of $3,000 per child in the maximum annual benefit for the Canada Child Benefit.
There is a one-time special payment payable in May 2020 for those eligible for the GST credit of $400 for single and $600 for couples.
The situation is changing rapidly. We are available to answer any and all questions you have during this unprecedented time.