Below is a more detailed summary of the points most relevant to our clients:
INDIVIDUALS AND TRUSTS
- Tax Return due date deferred to June 1, 2020
- However, if you expect a refund or other benefit (i.e. GST/HST, GIS, etc.) file ASAP!
- Tax payment deferral: Taxes that become owing between March 18 and August 31 can be deferred to August 31 without interest or penalties
- Individuals without sick leave who are sick, quarantined or forced to stay home to care for kids:
- Waiver of the one-week period to claim EI sickness benefit
- Waiver of the requirement to provide a medical certificate to access EI sickness benefit
- Emergency Care Benefit:
- Up to $900 bi-weekly for
- workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits;
- workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not qualify for EI sickness benefits; and
- parents with children who require care or supervision due to school closures, and are unable to earn employment income, regardless of whether they qualify for EI or not.
- Up to $900 bi-weekly for
- Application for the Benefit will be available in April 2020 and require Canadians to attest (and continue to attest every two weeks) that they meet the eligibility requirements. Individuals can apply through CRA’s MyAccount, their My Service Canada Account, or by calling an automated toll-free number not yet released.
- An Emergency Support Benefit will provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment. The individual amounts and process will be disclosed shortly
- Minimum RRIF Withdrawals: The required minimum withdrawals from Registered Retirement Income Funds (RRIFs) will be reduced by 25% for 2020. Similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.
- Trust Filing Due Date Deferral: For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.
- Tax Payment Extension: Businesses may defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period.
- CRA Audit Activity: CRA will NOT contact any small or medium businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.
- Payroll Subsidies: 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 remuneration paid during that period, up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.
No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.