{"id":1765,"date":"2020-04-02T21:39:09","date_gmt":"2020-04-03T01:39:09","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=1765"},"modified":"2020-04-02T21:39:11","modified_gmt":"2020-04-03T01:39:11","slug":"government-of-canada-emergency-response-update","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/government-of-canada-emergency-response-update\/","title":{"rendered":"Government of Canada Emergency Response Update"},"content":{"rendered":"\n
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I trust this message finds everyone well, safe and staying in their homes while we try our best to flatten the curve. We received this helpful update from AZ Accounting Firm. I hope this may be helpful for you or someone you know.<\/p>\n\n\n\n

The Government of Canada announced its\u00a0<\/strong>COVID-19 economic response<\/a>\u00a0plan on March 18, 2020.\u00a0 The Government of Ontario\u2019s\u00a0<\/strong>action plan<\/a>\u00a0was announced on March 25, 2020.\u00a0 Since both programs were released there have been many changes and updates and tax policies are still changing rapidly.<\/strong><\/p>\n\n\n\n

As valuable clients of AZ Accounting Firm, we are doing our utmost to keep you apprised of the most current information made available.<\/strong><\/p>\n\n\n\n

FOR BUSINESSES<\/strong><\/strong><\/h2>\n\n\n\n

Income Tax \u2013 Extension on filing and deferral on payment<\/strong><\/h3>\n\n\n\n

\u00b7         2019 Balance Owing \u2013 Payment of income tax becoming due between March 18, 2020 and August 31, 2020 can be deferred until August 31, 2020.  No interest or penalties will accumulate on these amounts during this period.<\/p>\n\n\n\n

\u00b7         Instalments \u2013 Income tax instalments due between March 18, 2020 and August 31, 2020 can be deferred until August 31, 2020. No interest or penalties will accumulate on these amounts during this period.<\/p>\n\n\n\n

\u00b7         Tax filing due date \u2013 Corporate income tax filings due between March 18 to May 31, 2020 are now due June 1, 2020.<\/p>\n\n\n\n

\u00b7         Extension for practically all other income tax filings \u2013 Partnership returns, T3 trust returns, and NR4 returns have been extended to May 1. Practically all other income tax filings (e.g. T1135 and T1135 forms) that would normally be due between March 18 and May 31 are now due June 1. The extension does not apply to the filing of SRED returns.<\/p>\n\n\n\n

\u00b7         Objections \u2013 Any objections due March 18 or later have been extended until June 30, 2020.<\/p>\n\n\n\n

\u00b7         Audits \u2013 The Canada Revenue Agency (CRA) will not contact any small or medium (SME) businesses to initiate any post assessment GST\/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.<\/p>\n\n\n\n

\u00b7         Electronic signature \u2013 The CRA will allow tax preparers to accept EFILE authorization forms signed using an electronic signature.<\/p>\n\n\n\n

 <\/strong><\/h3>\n\n\n\n

Canada Emergency 75% wage subsidy for qualifying small businesses, not-for-profit organizations, and charities<\/strong><\/strong><\/h3>\n\n\n\n

At this time, we<\/strong> are awaiting further details on the 75% wage subsidy. We will update the contents below once those details are made available. The content below is based on the announcement made April 1 by the Minister of Finance<\/a><\/h3>\n\n\n\n

 <\/h3>\n\n\n\n

1.       75% of wages paid starting March 15, up to a maximum of $58,700 per employee, will be eligible for the wage subsidy;<\/p>\n\n\n\n

2.       The wage subsidy will be limited to $847 per week per employee;<\/p>\n\n\n\n

3.       The subsidy will apply to all Canadian corporations, partnerships, sole proprietors, charities, and not-for-profit organizations (\u201cemployers\u201d);<\/p>\n\n\n\n

4.       The employer must experience at least a 30% decrease in revenue relative to the same month in 2019 (i.e. revenue in March, April, or May);<\/p>\n\n\n\n

5.       Will be in place for a 12-week period from March 15 to June 6, 2020;<\/p>\n\n\n\n

6.       Employer must apply (or confirm eligibility) each month through CRA\u2019s website;<\/p>\n\n\n\n

7.       Employers will be able to apply through CRA\u2019s website and are strongly recommended to register for direct deposit;<\/p>\n\n\n\n

8.       Employers will need to attest to make their best effort to pay employees the 25% balance but it is not required if they are unable to do so;<\/p>\n\n\n\n

9.       Funds are expected to start being paid to employers in 6 weeks; and<\/p>\n\n\n\n

10.   There will be strong penalties for anyone attempting to defraud system.<\/p>\n\n\n\n

 <\/strong><\/h3>\n\n\n\n

10% wage subsidy for qualifying small businesses, not-for-profit organizations and charities<\/strong><\/h3>\n\n\n\n

Based on the information currently available, you will not<\/strong> receive the 10% subsidy if you qualify for the 75% subsidy.  For businesses that do not qualify for the 75% subsidy, they may still<\/strong> qualify for the 10% subsidy.<\/p>\n\n\n\n

This is a temporary three-month wage subsidy that applies to employers who are:<\/strong><\/p>\n\n\n\n