COVID-19 Financial Measures Summary

We continue to closely follow relevant updates concerning COVID-19. The government has announced the following measures to help alleviate concerns and financial hardships.

Tax Relief

Individuals

• T1 filing deadline from April
  30, 2020 to June 1, 2020 (self-employed individuals have until June 15, 2020 to
  file as usual).
• Those getting the GST and Canada
  Child Benefit (CCB) should not delay filing their income tax returns to make
  sure payments come in on time for 2020-21, especially given the top-ups due to
  COVID-19 (read below).
• Income tax balances owing, and income
  tax instalments can be deferred until September 1st, 2020, without
  interest/penalties. (Previously, it was August 31^st, 2020.)
• The government is accepting
  electronic signatures for T183 and authorization forms.  A signed T183 must be provided to us before
  we are able to submit your tax return electronically.
• For most US individuals, the
  IRS has extended payment deadlines an additional 90 days such that payments can
  be deferred until July 15, 2020 without interest or penalties
• If you are accustomed to
  sending T3 slips to us to prepare your T1, you might not be getting them until
  closer to May 1^st (see below Trusts)
• We are still encouraging our
  clients to send in their documents electronically so we can file before the
  deadline. For those who are unable, this extension provides much-needed relief.
  

Trusts

• For trusts having a December 31^st
  year-end, the filing due date for T3 Returns is extended from March 30, 2020 to
  May 1, 2020.
• Balance owing & instalments
  can be deferred to August 31st, 2020.
• No mention of deadline
  extensions for estates which typically have a non-December 31^st year
  end.

Corporations/Businesses

• Effective immediately, income
  tax balances owing & income tax instalments that become owing on or after March
  18^th can be deferred to August 31^st , 2020.
• CRA will not contact any small
  or medium (SME) businesses to initiate any HST or Income Tax audits for the
  next four weeks.
• Temporarily suspend audit
  interactions with taxpayers and accountants. So, if you have ongoing audits/post-assessment
  reviews, there is some relief here.

Help for Employers to Pay Employees

• Provide eligible small businesses
  with a wage subsidy equal to 10% of wages during the next 90 days (March 18th and
  before June 20^th) up to a maximum of $1,375 per employee and caps at
  $25,000 per employer.
• You can benefit immediately by
  reducing remittances of income tax (federal, provincial, or territorial income
  tax) withheld on your employees’ remuneration. Employers benefiting from this
  measure will include corporations eligible for the small business deduction, as
  well as non-profit organizations and charities.
• This is supposed to take effect
  as of today. Supporting legislation to follow.
• No mention of whether
  unincorporated businesses (partnerships/sole-proprietors) will qualify. Further
  details needed.  
• We are waiting for details
  on how this is going to be administered.

Help for Employees and Self-Employed Individuals

• Starting early April, Emergency Care Benefit of up to $900
  bi-weekly for up to 15 weeks to provide support to the following if they
  do not qualify for Employment Insurance (EI) benefits:
  • Workers (including
    self-employed), who are sick, quarantined or told to self-isolate.
  • Workers (including
    self-employed), taking care of COVID-19 infected family member.
  • Working parents staying at home
    without pay because of sick children or school closures.
  • Applicants will need to
    re-attest every two weeks to reconfirm their eligibility.
• Waiving of mandatory one week
  waiting period for EI sickness benefits for workers in imposed quarantine or
  who have been directed to self-isolate.
• Waive the requirement for a medical
  certificate to access EI sickness benefits.
• For those who lost their jobs
  or face reduced hours, the Emergency Support Benefit delivered through
  the CRA will provide up to $5.0 billion in support to workers who are not
  eligible for EI. Starting in early April.

Individuals & Families

• Special top-up payment under
  the GST credit. Starting in early May.
• Boosting the Canada Child
  Benefit (CCB) payments. Starting in May.
• The top-ups to GST/CCB
  should provide fast relief since most of these are direct deposit and quicker
  than government cutting cheques.
• Provide increased flexibility through
  loan re-amortization, deferrals, etc., to assist with mortgage payments on
  homeowner government-insured mortgage loans to borrowers who may be experiencing
  financial difficulties related to the outbreak.
• Banks are committed to allow
  customers to defer mortgage payments for up to 6 months.

Businesses

• Increase support for businesses
  by increasing credit available to Canadian businesses through Business
  Development Bank of Canada, Export Development Canada, and Canada Mortgage and
  Housing Corporation
• Increase support for businesses
  by increasing credit available to Canadian businesses through Business
  Development Bank of Canada, Export Development Canada, and Canada Mortgage and
  Housing Corporation
• Banks are committed to working
  with customers to provide flexible solutions, on a case-by-case basis

Older people – RRIF Withdrawals

• Reduce minimum withdrawals from
  RRIFs by 25% for 2020 in recognition of volatile market conditions and their
  impact on many older people’ retirement savings.
• Effective Immediately,
  supporting legislation to follow.

Students

• Implement a 6-month
  interest-free moratorium on Canada student loan payments. Early April.

A lot of these measures still need a lot more specifics and may not cover all potential scenarios. We will continue to monitor the developments and keep you up to date.