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COVID-19: Help for Businesses

May 15, 2020 by Northshore

COVID-19: Help for Businesses


This summary is strictly for information purpose only, it is not law and not exhaustive. We have no additonal information.
The situation is changing regularly. Please visit trusted government websites for the most complete and up-to-date information.

Canada Emergency Response Benefit (CERB)


NEW INFORMATION MAY 2

Please click on the link above for more specific information about eligibility, reporting periods and how to apply

  • The CERB is available to workers who have stopped or are delayed in working because of COVID-19. Eligibility requirements and conditions have to be met upon initial application and subsequent renewals.
  • Important phone numbers
    • FAQ’s with this automated help line 1-833-966-2099
    • to speak with an agent about CERB 1-800-959-8281
    • to apply call the automated toll-free line 1-800-959-2019 you will have to confirm your identity with your SIN and your postal code
  • Online application
    • through CRA’s My Account – click here 
    • My Service Canada Account – click here
    • on the portal

Wage Subsidies

  • NEW INFORMATION – May 15
  • 10% Wage Subsidy.  – every company with employees is eligible for this regardless of revenue
  • Canada Emergency Wage Subsidy (CEWS)
    • federal payroll subsidy of up to 75%
    • eligibility requirements are changing – check the websites for the most current information
    • eligibility claim periods have been extended to August 29
  • Refund for Certain Payroll Contributions
    • available for employers eligible for CEWS who have employees on leave with pay
    • 100 per cent refund for employer-paid contributions to Employment Insurance and the Canada Pension Plan
  • please click on the appropriate CRA websites above for more specific information regarding revenue calculation, eligibility, calculation of subsidy and payroll contribution refunds

Regional Relief and Recovery Fund

NEW PROGRAM INFORMATION APRIL 17

  • FedDev Ontario will be delivering the Regional Relief and Recovery Fund in southern Ontario, which will provide:
    • financing support to small- and medium-sized businesses.
    • support rural businesses and communities, including by providing them with much-needed access to capital through the Community Futures Program.
  • Details of the new Fund will be launched nationally in the coming weeks.   
    • Keep checking the FedDev Ontario page, it will be updated with all the information.
    • Contact FedDev Ontario to navigate the process
      • Toll-Free: 1-866-593-5505
      • Email form – click here

Income Tax Payment Extension

  • payment of income tax amounts (including installments) that are owing after March 18 and before September 1 are due Sept 1, 2020
  • no interest or penalties will accumulate during this period
  • please click on the link above for more specific information regarding the details of the extension

GST/HST Remittance Deferral

  • payment of remittance amounts has been extended until June 30, 2020
  • filing dates for HST returns have not changed, original due dates are still applicable
  • please click on the link above for more specific information

WSIB Financial Relief Package

  • premium reporting and payments deferred until August 31, 2020
  • please click on the link above for more specific information

Corporation & Charity tax filing due date

  • Corporation filing dates and payment due dates have been extended
  • Charities with Form T3010 due between March 18, 2020 and December 31, 2020 are also extended
  • please click on the link above for more specific information

Business Credit Availablity Program

  • Canada Emergency Business Account
    • to qualify, the business 2019 T4 summary must indicate wages between $50,000 and 1 million
    • up to $40,000 line of credit
  • Loan Guarantee Program
    • for small and medium sized businesses creating new operating credit and cash flow term loans from financial institutions
  • Co-Lending Program with Business Development Bank of Canada
    • for small to medium sized businesses
    • term loans for their operational cash flow requirements
    • may obtain incremental credit amounts up to $5 million per loan
  • please click on the CRA links above and contact your financial instution for more specific information

Deferral of Customs Duty and Sales Tax for Importers

  • payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.

Corporate Tax Credit

  • 10% tax credit for regions experiencing lagging employment growth

CRA Audit Activity

  • no new post assessment GST/HST or income tax audits until April 15
  • temporarily suspend audit interaction with taxpayers (in most cases)

Liason Officer Service

  • now available by phone, through an online application
  • ensuring businesses are aware of any changes such as –
    • filing and payment deadlines
    • proactive relief measures, etc

Important Links

  • These measures were announced throughout March 2020 – some have been legislated – some are announcements
  • Over the next few days and weeks, specifics to these programs will be finalized.
  • Most of the details will be released on one of these four webpages:
    • COVID-19: Canada’s response
    • Helping Canadians with the economic impact of the COVID-19 Pandemic
    • COVID-19: Financial help for Canadians outside Canada
    • COVID-19: Benefits and services

Make up your mind

December 9, 2019 by Northshore

The taxpayer had income from doing interpreter/translator work.  The taxpayer claimed some of it was employment income and some of it was business income.  This allowed him to claim business expenses on some of it and the Canada Employment tax credit on the rest.  On the portion that the taxpayer called employment income, it was determined he was not part of the employee benefits plan nor was paid like an employee.  The Tax Court looked at things like ownership of tools, chance of profit, risk of loss, and integration of services and determined all his services were part of his regular business activity and not employment related.

Employee or Contractor

October 22, 2019 by Northshore

When you hire somebody, or get hired, a gray area sometimes surfaces as to whether you are an employee or a contractor (aka sub-contractor or self-employed).  Both parties quite often see it as a contractor role but the CRA prefers it to be an employee relationship.  Why?  They collect payroll taxes from employees AND employees do not get to write-off expenses incurred to generate that income.

The Wiebe Door case previously established that this determination be based on 1) control, 2) ownership of tools, 3) chance of profit, and 4) risk of loss.  A more recent case was brought forward arguing the intention of the parties has to be considered as well.  The Tax Court agreed as long as the four factors of the Wiebe Door case were not sufficiently strong enough to overcome the “intention” of the parties.

In this court case, both the company and its driver had clearly considered this a contractor relationship and the Court agreed.

Storage fees as a business deduction?

September 23, 2019 by Northshore

A lawyer retired after 27 years.  As required by her professional liability insurance company, she had to retain client files.  CRA initially disallowed the deduction.  The Tax Court found that she had built into her client fees a certain amount to cover the cost of storage.  As she had reported this income, it was only fair she be allowed to write-off her costs now.  The Tax Court also felt the amount claimed was reasonable.

Really a business?

September 15, 2019 by Northshore

The taxpayer reported losses on two rental properties he owned.  The CRA disallowed the losses reported for the 2005 through 2011 tax years.  The Tax Court agreed finding the taxpayer was just trying to recover some of his expenses.  He did not conduct the operation in a business-like manner and he had not shown a profit in the six years under review.

Reasonable business expenses

August 8, 2019 by Northshore

Reasonable business expenses

A business claimed a lot of tech type expenses due to the nature of his “remote” and “online” services.  The CRA audited these higher than usual expenses.  The agreed with the taxpayer these expenses were incurred in his pursuit of profits. 

However, they disallowed most of the automobile expenses as they determined the “remote” and “online” nature of the businesses left very little need for an automobile. 

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