We wanted to inform you about the changes the government is bringing into play due to the COVID-19 pandemic. This letter will be broken into two categories, the first being what the government is proposing to do for individuals, and then what they plan to do for businesses.

Before we go into any details, we highly recommend you create an account to access the CRA portal, so in the situation you need to apply for the Canada Emergency Response Benefit, you can do so quickly and without any issues. You can create an account by following the link below: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

Individuals

The Government of Canada will be making available the Canada Emergency Response Benefit beginning April 6th. People who lose their jobs due to COVID-19, are sick, quarantined or in directed self isolation will be able to apply for this credit. This credit will provide a taxable benefit of up to $2000.00 a month for up to four months.

Beginning April 9th, low and modest income families will receive a one-time GST payment of up to $600.00. You do not need to apply for this credit, you will receive this credit if you are eligible. If you are not eligible you will not receive this credit. The Canada Child Tax benefit will be increased up to $300.00 per child for this period also.

Your 2019 tax return due date has been deferred to June 1, however if you are expecting a Canada Child Tax Benefit or a GST credit, please file your taxes as soon as possible so you get the appropriately determined amounts.

Seniors who have a Registered Retirement Income Fund, your minimum withdrawal amount has been dropped by 25% and students, effective March 30th, there is a six month interest free moratorium being placed on the repayment of loans for all student loan borrowers.

 

Businesses

The payment of any income tax owed between March 18th and August 31st can now be deferred to after August 31st. Businesses and self employed individuals will now be able to defer GST/ HST payments and customs duties until June 30th.

The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers; the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

If you have any questions please feel free to take a look at the following link: https://www.canada.ca/en/department-finance/economic-response-plan.html

If you have any questions, please feel free to contact us. We are here to help in this difficult time.

We are all in this together.