It has been a challenging few weeks for all of us, and each day delivers major updates and further announcements, sometimes by the hour. The Government of Canada is taking significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak. CLICK HERE to view Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses in full. As your advisors, our goal is to keep you informed on issues involving taxation and the CRA.
The CRA will defer tax deadlines as follows:
- The Canada Revenue Agency will allow all taxpayers (corporate and personal) to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief applies to tax balances due, as well as installments.
- GST, no changes to payment deadlines announced.
- Payroll, no changes to payment deadlines announced. See wage subsidy.
- Individual taxes, normally due to file by April 30 now deferred to June 1.
- Corporate taxes, normally due 6 months after year end, unchanged.
- GST, no changes to filing deadlines announced.
- Payroll, no changes to filing deadlines announced.
- To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of the remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
- Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities
- Canada’s announcement claims businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration, but the process for application is yet to be announced. We will keep you informed as more information becomes available**
**BREAKING NEWS UPDATE**
Since the creation of this post, we have new details on the wage subsidy plan from the government. In addition to the information above, we now know that the eligible period for wages is March 18-June 20 and that businesses are able to reduce their payroll remittances starting with the March 18-31 remittance period- or, for most monthly remitters, the March remittance due April 15th. CLICK HERE to read the government’s informative FAQ for more details.
As a digital firm, we do not anticipate significant interruptions in our work and we will continue to strive for client-service excellence. We will remain committed in every way possible to help you through this time. Please know our thoughts are with you, your families, and your businesses.
The Metrics Team