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Coronavirus and Small Business

Coronavirus and Small Business

Extended Filing Deadlines

GST/HST

To support Canadian businesses in the current extraordinary circumstances, the Minister of National Revenue will extend until June 30, 2020 the time that:

  • Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
  • Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
  • Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year

Source: https://www.canada.ca/en/department-finance/news/2020/03/additional-support-for-canadian-businesses-from-the-economic-impact-of-covid-19.html

Personal Tax

The filing deadline for individuals has been deferred to June 1, 2020

For trusts and estates that would normally have a March 30 filing deadline, it has been extended to May 1, 2020.

ANY income tax amounts that become due between now and August 31, 2020 will not be required to be paid until AFTER August 31, 2020.  This applies to ALL taxpayers including corporations that would have to pay by March 31, 2020 for their December 31, 2019 fiscal year end. This also included tax instalment amounts that normally would be required. No interest or penalties will accumulate on these amounts during this period.

Effective immediately, the CRA will accept ELECTRONIC signatures on T183 and T183CORP authorization forms as a temporary administrative measure – these are the forms you sign to allow us to file your returns.

10% of remuneration paid to employees over the next 3 months will be eligible for a subsidy.  This amount will be capped at $1,375 per employee and $25,000 per employer.  Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employee’s remuneration. Employers that will benefit from this measure will include small business corporations.

For additional information about other measures, please click the Government link. https://www.canada.ca/en/department-finance/economic-response-plan.html

New Loan Programs for Businesses

Canada Emergency Business Account

This $25 billion program 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, due to the economic impacts of the COVID-19 virus.

This will better position them to quickly return to providing services to their communities and creating employment.

Small businesses and not-for-profits should contact their financial institution to apply for these loans.

To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

A New Loan Guarantee for Small and Medium Enterprises

Small and medium-sized enterprises (SMEs) may be particularly vulnerable to the impacts of COVID-19. To support their operations, EDC will guarantee new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million.

The program cap for this new loan program will be a total of $20 billion for export sector and domestic companies.

Administrative tax measures

In addition to the income tax filing and payment deadline extensions, unless otherwise noted, administrative income tax actions required of taxpayers by the CRA that are due after March 18, 2020, can be deferred to June 1, 2020. These administrative income tax actions include returns, elections, designations and information requests. Payroll deductions payments and all related activities are excluded.

Trusts, Partnerships and NR4 Information Returns

The deadlines for trusts, partnership and NR4 information returns are all extended to May 1, 2020. This is due to administrative requirements in advance of the June 1, 2020 deadline for filing individual income tax and benefit returns.

Suspending collections on new debt

Collections activities on new debts will be suspended until further notice, and flexible payment arrangements will be available.

Payment arrangements are also available on a case-by-case basis if you can’t pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full.

If you have concerns and require contact with a Collections Officer, please contact our toll free number 1-800-675-6184 between 8:00 a.m. and 4:00 p.m. your local time.

Requirement to pay (RTP)

Banks and employers do not need to comply or remit on existing RTPs during this time.

Government Resources

If you’re an employer or worker facing difficulty as a result of COVID-19, you may be able to take advantage of federal government support.
Here are some links that may be helpful:
https://edc.ca/en/campaign/coronavirus-covid-19.html#…
https://bdc.ca/en/pages/special-support.aspx?special-initiative=covid19…
https://canada.ca/en/employment-social-development/corporate/notices/coronavirus.html

Coronavirus and small business: keeping you and your employees safe

Source: CFIB

The emergence of COVID-19, also known as coronavirus, is understandably a big concern with impacts on all areas of life.
It is important for small business owners to be prepared for a potential crisis.

Visit the CFIB’s website for the answers to these questions and more.