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March 22, 2020

The Impact of COVID-19 – revised Mar 25

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Jump to: Information for Individuals Information for Businesses Important Links

Key Points For Individuals

Tax Relief

  • Tax Return Due Date Referral
    • personal tax filing due date will be June 1, 2020
    • those expecting refunds or benefits (GST/HST credit, GIS, CCB) should file ASAP to avoid a lapse in payment
  • Tax Payment Deferral
    • to after August 31, 2020
    • payment of income tax amounts (including instalments) that become owing on or after March 18 and before September
    • no interest or penalties will accumulate on these amounts during this period

Temporary Income Support for Workers

  • EI Sickness Benefits
    • for workers without paid sick leave who are sick, quarantined or forced to stay home to care for children will have access to benefits
      • without the one week waiting period, effective March 15
      • without the requirement to provide a medical certificate
March 25, 2020
  • Canada Emergency Response Benefit
    • replaces the Emergency Care Benefit and the Emergency Support Benefit
    • taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19
    • Canadians who:
      • have lost their job
      • are sick, quarantined or taking care of someone who is sick with COVID-19
      • are working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures
      • apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI)
    • workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19
    • all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB
    • portal for accessing the CERB would be available in early April
    • begin to receive CERB payments within 10 days of application
    • CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020
  • Additional information about EI & CERB
    • those already receiving EI regular and sickness benefits
      • continue to receive their benefits
      • should not apply to the CERB
        • if benefits end before October 3 and are unable to return to work due to COVID-19
        • apply for the CERB once their EI benefits cease
    • those who have already applied for EI and whose application has not yet been processed would not need to reapply
    • those eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB
click here for the latest information

Longer Term Income Support for Individuals

  • Low/Modest Income Individuals
    • will receive a one-time special payment by early May 2020 through the Goods and Services Tax credit
      • an average boost to income for those benefitting by close to $400 for single individuals and close to $600 for couples
    • increase Canada Child Benefit payment amounts by $300 per child for the 2019-20 benefit year
      • added to the May 2020 benefit cheque
  • for children under 12 , a one time payment of $200 per child ($250 for a child with special needs)
    • apply through portal soon to be launched
  • GIS payments will double to $322/mth
    • no indication of time frame

New information March 25, 2020

  • Changes to the EI Work Sharing Program
    • extending the eligibility to 76 weeks
    • easing eligibility requirements
    • streamlining the application process

Financial Assistance for Individuals

  • Municipalities urged to provide Property Tax Deferrals to municipal taxpayers

New Information March 25, 2020

  • Mortgage Deferral Program
    • up to 6-month payment deferral
    • relief on other credit products
    • flexible payment solutions
  • Student Loan Moratorium
    • six-month interest free moratorium on the repayment of Canada Student Loans
  • Minimum RRIF Withdrawals
    • reduced by 25% for 2020
    • similar rules for receiving variable benefit payments from RPP
  • Interest Rate Cuts
    • Bank of Canada reduced prime interest rate to .75%
    • other bank have also reduced rates
  • Emergency Loan Program
    • to Canadians in need of immediate financial assistance to return home
    • emergency assistance is a repayable loan
  • Indigenous Community Support Fund
    • to address immediate needs in the First Nations, Inuit and Metis Nation communities
  • Homelessness
    • support the homeless during the outbreak
    • purchasing beds, physical barriers and reducing overcrowding in shelters
  • Domestic Abuse Shelters
    • increase capacity and prevent outbreak in their facilities

Information For Businesses

Tax Relief for Businesses

  • Tax Payment Extension for Businesses
    • to after August 31, 2020
    • payment of income tax amounts (including instalments) that become owing on or after March 18 and before September
    • no interest or penalties will accumulate on these amounts during this period

Temporary Measures for Businesses

  • Increase in the Employer Health Tax exemption
  • 10% corporate tax credit for qualifying regions
  • WSIB premium deferral for up to six months

New information March 25, 2020

  • Payroll Subsidies
    • a temporary wage subsidy for a period of three months
    • equal to 10% of remuneration paid during that period
    • up to a maximum of $1,375 per employee and $25,000 per employer
    • by reducing their remittances of income tax
    • effective immediately
  • CRA Audit Activity
    • will not initiate any post assessment GST/HST or Income Tax audits for the next four weeks
    • CRA will temporarily suspend audit interaction with taxpayers (in most cases)

Financial Assistance for Businesses

  • Business Credit Availability Program
    • $10 billion of additional credit support
    • Additional credit through Farm Credit Canada for the agri-food sector
    • $300 billion in additional lending by the banks
  • Liaison Officer Service
    • available by phone
    • ensuring businesses are aware of any changes such as:
    • filing and payment deadlines
    • proactive relief measures, etc

Other Payment & Filing Extensions

No comments were made about changing the filing and payment dates for payroll, GST/HST and other non-income tax items.

Important Links

  • These measures were announced on March 18, 2020 and March 25, 2020 – draft legislation is to come.
  • 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
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