COVID-19 Updates, Information and Important Links

https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

Canada Emergency Commercial Rent Assistance (CECRA) for small businesses provides relief for small businesses experiencing financial hardship due to COVID-19. It offers unsecured, forgivable loans to eligible commercial property owners to:

• reduce the rent owed by their impacted small business tenants
• meet operating expenses on commercial properties

Property owners must offer a minimum of a 75% rent reduction for the months of April, May and June 2020.

We encourage all eligible commercial property owners to participate in this program.

As part of your application, you must provide rent reduction agreement(s) and landlord and tenant attestations.

We are taking a staggered approach for applications

To manage volume, we will be asking property owners to register on the following days.

Day	Who should register?
Monday	Property owners who are located in Atlantic Canada, BC, Alberta and Quebec, with up to 10 tenants who are eligible for the program
Tuesday	Property owners who are located in Manitoba, Saskatchewan, Ontario and the Territories, with up to 10 tenants who are eligible for the program
Wednesday	All other property owners in Manitoba, Saskatchewan, Ontario and the Territories
Thursday	All other property owners in Atlantic Canada, BC, Alberta and Quebec
Friday	All

NOTE: Once registered, the portal will be available 24/7 for applicants to input data and upload documents.

CMHC has engaged  MCAP and First Canadian Title (FCT) to deliver CECRA for small businesses. You may be contacted by either MCAP or FCT throughout the applicant validation and funding processes. Representatives will be available to answer questions specific to your application.

Why property owners should apply for CECRA for small businesses?

If you’re a commercial property owner and have small business tenants struggling to make their rent due to the pandemic, CECRA for small businesses may be right for you. Applying for this program can help you and your tenants.

Your property depends on the success of your tenants

If your small business tenant declares bankruptcy and you have to evict:

• you will receive zero rental income
• you will continue to pay mortgage or debt costs on your property, including property tax, maintenance and other costs
• you’ll have to incur additional costs and go through a lengthy process — often between 6 to 18 months — to find new tenants
• you risk having to rent your space out at a lower cost post-pandemic

If you have to replace a small business tenant, you end up paying a lot of cash out

• You need to evict your tenant and may incur legal and other expenses to do so.
• You still need to pay the mortgage on the property.
• It generally takes about 6 months to re-lease a space ($60,000 lost revenues).

With CECRA for small businesses, you still collect a portion of your gross rent

For a business tenant paying $10,000 per month:

• CECRA for small businesses will cover 50% of the rent ($5,000).
• Your tenant will pay up to 25% of the rent ($2,500).
• You forgive 25% of the rent ($2,500).

This means you get up to 75% of the rent or $7,500 of rent per month for April, May and June.

This adds up to $22,500 over the course of the program. It also provides your tenants breathing room to recover and remain viable post-crisis.

Your loan will be forgiven

CECRA for small businesses offers you a forgivable loan worth 50% of the value of your small business’ rent each month. The loans will be forgiven if you comply with all applicable program terms and conditions — including to not recover forgiven rent amounts when the program is over.

What you need to apply

Property owners will need to provide information in support of their application, sign an attestation and agree to the terms and conditions of the loan agreement in order to be eligible for the program. You will find these documents the application portal.

Attestations

• Tenant or Sub-tenant’s Attestation:
  Property owners must have each of their eligible commercial small business tenants and/or subtenants sign an attestation. Tenants are responsible for attesting to their eligibility with the program requirements.
• Property Owner’s Attestation:
  Property owners must sign an attestation confirming the information relating to the property owner and the property provided in the application is correct and attest to their eligibility with the program requirements.

Agreements

• Rent Reduction Agreement:
  All application documents will be accessible on May 25, 2020. Property owners must enter into a legally binding rent reduction agreement with each impacted tenant to confirm the rent reduction in accordance with the program terms and conditions. This agreement is conditional upon final approval of the application for CECRA for small businesses.
• Forgivable Loan Agreement:
  Property owners must agree to the terms and conditions in the application and outlined in the forgivable loan agreement.

You’ll also need to provide the following information:

Property owner information

• Property information includes: property address, property type, property tax statement, latest rent roll for each property and the number of commercial units
• Applicant information includes: banking information (including bank statement), property owner contact information, co-ownership information and contact details for co-owners

Tenant information

• Tenant information includes: tenant contact information, registered business name, number of employees, lease area and the monthly gross rent for the period of April, May and June 2020

Who is eligible to apply for the CECRA for small businesses program?

To qualify for CECRA for small businesses, the commercial property owner must:

• own commercial real property* which is occupied by one or more impacted small business tenants
• enter (or have already entered) into a legally binding rent reduction agreement for the period of April, May and June 2020, reducing an impacted small business tenant’s rent by at least 75%
• ensure the rent reduction agreement with each impacted tenant includes:
  • a moratorium on eviction for the period during which the property owner agrees to apply the loan proceeds, and
  • a declaration of rental revenue included in the attestation

The commercial property owner is not and is not controlled by an individual holding federal or provincial political office.

CECRA will not apply to any federal-, provincial-, or municipal-owned properties, where the government is the landlord of the small business tenant.

Exceptions

• Where there is a long-term lease to a First Nation, or Indigenous organization or government, the First Nation or Indigenous organization or government is eligible for CECRA for small businesses as a property owner.
• Where there are long-term commercial leases with third parties to operate the property (for example, airports), the third party is eligible as the property owner.
• Also eligible are post-secondary institutions, hospitals, and pension funds, as well as crown corporations with limited appropriations designated as eligible under CECRA for small businesses.

NOTE: Small businesses that opened on or after March 1, 2020 are not eligible.

* We define commercial real property as a commercial property with small business tenants. Commercial properties with a residential component and multi-unit residential mixed-use properties would equally be eligible with respect to their small business tenants.

NOTE: Properties with or without a mortgage are eligible under CECRA for small businesses.

What is an impacted small business tenant?

Impacted small business tenants are businesses — including non-profit and charitable organizations — that:

• pay no more than $50,000 in monthly gross rent per location (as defined by a valid and enforceable lease agreement)
• generate no more than $20 million in gross annual revenues, calculated on a consolidated basis (at the ultimate parent level)
• have experienced at least a 70% decline in pre-COVID-19 revenues **

NOTE: Eligible small business tenants who are in sub-tenancy arrangements are also eligible, if these lease structures meet program criteria.

** Small businesses can compare revenues in April, May and June of 2020 to that of the same period in 2019 to measure revenue losses. They can also use an average of their revenues earned in January and February of 2020.

How does the CECRA for small businesses program work?

CMHC administers CECRA for small businesses on behalf of the Government of Canada and our provincial and territorial partners.

The program offers assistance for the months of April, May and June 2020.

• Property owners can apply later and the program will be applied retroactively.
• Property owners may still apply for assistance once the 3-month period has ended if they can prove eligibility during those months. The end date for applications is August 31, 2020.
• Property owners must use the funds from CECRA for small businesses to refund amounts in excess of 25% paid by the small business tenant for the period or at the option of the impacted tenant apply rent paid in excess of 25% to future rent owing by the impacted tenant. ***

*** If rent has been collected at the time of approval, a credit to the tenant for a future month’s rent (i.e. July for April) is acceptable — if the tenant chooses this option. This can be a flexible 3-month period.  

The deadline to apply is August 31, 2020.

CMHC will provide forgivable loans to eligible commercial property owners. Funds will be transferred to the property owner’s financial institution.

• The loans will cover up to 50% of the monthly gross rent owed by impacted small business tenants during the 3-month period of April, May and June 2020.
• The property owner will be responsible for no less than half of the remaining 50% of the monthly gross rent payments (paying no less than 25% of the total).
• The small business tenant will be responsible for no more than half of the remaining 50% of the monthly gross rent payments (paying no more than 25% of the total).

Note: If you are a tenant and struggling to pay the remaining portion of your rent, alternate programs are available to assist you.

Loan forgiveness

CECRA for small businesses loans will be forgiven if the property owner complies with all applicable program terms and conditions — including to not recover forgiven rent amounts when the program is over.

FAQS for property owners

Why should I apply?

There are several reasons that applying for this program could be beneficial for you:

• CECRA for small businesses loans will be forgiven if you comply with all applicable program terms and conditions — including to not recover forgiven rent amounts from your impacted tenants when the program is over.
• CECRA for small businesses ensures that you get a minimum of 50% of your rent covering April, May and June of 2020
• The eviction and new rental process is expensive and those funds affect your profits.

Are there any rules on how I can use these funds?

Yes, in order of priority, you can use the funds for:

• reimbursing impacted tenants for any rent paid above 25% during the eligible period unless the tenant chooses to apply the previously paid rent against future rent
• any costs and expenses relating directly to the property, including any financing held by the property owner operation and maintenance and repair obligations (such as costs of common area maintenance, property taxes, insurance and utilities)

When will my loan be forgiven?

This interest free loan will be forgiven on December 31, 2020. To ensure loan forgiveness, you must follow the terms and conditions of the loan, including:

• complying with the Rent Reduction Agreement
• ensuring that your attestation and application (including supporting documentation) is accurate and truthful

NOTE:

• If you file for bankruptcy, restructure, reorganize or dissolve your business, you will need to pay back this loan.
• In the event of default, CMHC has full recourse to recover the CECRA funding from you (the property owner).

How is the $20M gross annual revenue threshold calculated and what is the ‘ultimate parent’?

Gross annual revenues are calculated based on your small business tenant’s 2019 financial revenue. Your small business tenant would use whatever 12-month period their company used to calculate its financials.

Ultimate parent/owner

If the small business tenant or its ultimate owner produces consolidated statements, then the tenant would use revenues reported for the group level of companies.

Alternatively, if the small business tenant does not produce consolidated statements, then it is the specific revenue of the tenant that applies for the $20 million test.

What is included in monthly gross rent?

Monthly gross rent is the total gross rent amount payable by the small business tenant as set out under a valid and enforceable lease agreement. Please see table below for inclusions/exclusions:

Included in Gross Rent

1. Net rent / minimum rent / base rent (in a net lease)
2. Regular monthly installments of operating costs (in a net lease)
3. Regular monthly installments of property taxes payable to the landlord (in a net lease)
4. Regular monthly installments of other additional rent amounts payable to the landlord — for example: maintenance costs, repairs, utilities, management fees, etc. (in a net lease)
5. Gross rent (in a gross lease)
6. Percentage of sales rent paid (if included in the lease arrangement)

Excluded from Gross Rent

1. Damages
2. Indemnity payments
3. Payments arising due to tenant default / landlord enforcement
4. Payments arising due to landlord exercise of self-help remedies
5. Interest and penalties on unpaid amounts
6. Fees payable for discrete items or special services (for example: fees to landlord for reviewing plans, supervising work, considering requests for consent, performing exceptional tasks at tenant’s request)
7. Reconciliation adjustment payments
8. Amounts required under the lease agreement to be paid separately by the tenant to third parties (for example: property taxes, utilities, insurers)
9. Costs of non-monetary obligations (e.g., repairs and maintenance)
10. Insurance proceeds or proceeds from other rent subsidy programs
11. Sales taxes, including HST
    Note: applying for insurance coverage does not remove you from being eligible for the program, but it may adjust the amounts received if you successfully receive payments from insurance claims or other programs to cover rent

As the Property Owner, am I eligible if I have no declared rental income for 2018 and/or 2019 because my property is new?

Yes, where the property is newly constructed or recently purchased, you may be still eligible for CECRA for small business, provided the other program requirements are met.  This includes having entered into a lease with the eligible tenant on or before April 1, 2020.

What if one of my tenants cannot make the 25% contribution?

CECRA for small businesses offers commercial property owners a forgivable loan of 50% of impacted tenant rent during these difficult and uncertain economic times.

The Government of Canada offers other programs that may be available to assist tenants who struggle to pay the remaining portion of their rent. Landlords may provide rent forgiveness above the minimum 25% as well or defer payment of the 25%.

As a property owner, do I need to provide a declaration for each tenant included in my application?

Yes. Property owners will need to obtain an attestation for each impacted tenant asking for help.

We aren’t in June yet — should I wait to apply? If I do apply now, will I need to re-apply so that each of my tenant(s) can provide an attestation for June? 

No, you must apply for all 3 months at the same time and all impacted tenants must be included on a single application.

Your tenant can use forecasts for the month of June. The eligibility on the 70% factor will be determined on the average of April, May and then, forecasting June revenues.

I am a property owner and my small business is the only tenant, can I apply?

CECRA for small businesses is applicable to commercial property owners with a valid and enforceable lease agreement with an impacted small business tenant.

• Landlords and tenants who are not at arm’s length will be included in the program as long as there was a valid and enforceable lease agreement in place and the rent under the lease is at market rates.
• All general program requirements apply. This includes confirmation that you have declared rental revenue in your attestation.

How do you define commercial Real Property?

We define commercial real property as a commercial property with small business tenants.

Commercial properties with a residential component and multi-unit residential mixed-use properties would equally be eligible with respect to their small business tenants.

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2020/filing-2019-taxes-covid19-crisis.html

At the Canada Revenue Agency (CRA), we understand that the COVID-19 pandemic may make it difficult for some Canadians to file their returns and meet their diverse tax-filing needs. To help, we extended filing and payment deadlines. Here’s what you need to know.

New tax filing and payment deadlines

The deadline for most individuals to file their 2019 taxes has been extended to June 1, 2020. The deadline to pay amounts owed has also been extended to September 1, 2020. Penalties and interest will not be charged if payments are made by the extended deadlines of September 1, 2020. This includes the late-filing penalty as long as the return is filed by September 1, 2020.

If you, your spouse, or your common-law partner are self-employed, you still have until June 15, 2020, to file your taxes. However, your payment deadline has also been extended to September 1, 2020.

For those who have to pay by instalments, the June 15, 2020, payment due date has also been extended to September 1st. Instalment penalties and interest will not be charged for this payment if it is made by the extended deadline of September 1, 2020.

For more information on the filing and payment deadline changes due to COVID-19, go to Income tax filing and payment deadlines: CRA and COVID-19.

Why file by the deadline if no payment is due until September 1?

Filing by the deadline will minimize impacts to your benefit and credit payments. If your 2019 return has not been assessed by the CRA, information from your 2018 return will be used to calculate benefit and credit payments until September 2020. That will ensure you continue to receive important payments that will help through the COVID-19 crisis. However, you may not be getting exactly the right amounts. By filing a return by the deadline, you will minimize this impact. Also, if you are owed a refund, the earlier you file, the earlier it will arrive in your pocket. By registering for direct deposit, you’ll get your refund even faster.

We have resources to help you file:

• Get Ready to do your taxes – get helpful information to start the return filing process.
• Doing Your Taxes – a step-by-step guide on completing and sending your taxes to the CRA.
• NETFILE certified tax software – find certified tax software you can use to file online, some of which are free.
• Virtual tax clinics – community organizations are hosting free virtual tax clinics where a volunteer can help you file your return over the telephone or using a video conferencing application.

Help us assess your return faster! If you already filed a 2019 paper return that we have not processed yet, you can file it again online using NETFILE certified tax software. However, it can’t be used for returns the software says must be paper-filed or returns excluded from electronic filing.

If you need to change your tax return, submit your request electronically using Change My Return in My Account or ReFILE with the same certified tax software you originally used to file your income tax return. Your reassessment will be completed much quicker. You may be able to submit your request electronically even if you already submitted one by mail.

Take advantage of the CRA’s digital services

The CRA’s digital services make it easier to manage your tax and benefit affairs from home. Our online tools can help you through the COVID-19 crisis and beyond.

Register for My Account to easily view and update your personal and direct deposit information, view the status of your return or refund, and view your benefit and credit information. Since March 1st, 2020, over 2.5 million people have registered for My Account to make it easier to get payments such as the Canada Emergency Response Benefit.

Once you are signed up for My Account, you can also sign up for Email notifications to receive all your CRA mail electronically, such as your notice of assessment or reassessment, benefit notices, and instalment payment reminders. As a result, mail from the CRA will get to you as soon as possible. For added security, you will also receive emails whenever your information such as your address, banking, or marital status information, changes.

For more information on all the changes to taxes and benefits related to COVID-19, go to canada.ca/cra-coronavirus.

https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

Please find some of the highlights from the Canadian Emergency Wage Subsidy program (CEWS) that was passed into law last weekend; with thanks to a colleague for allowing me to reproduce here.  Please note it could still be a few weeks before the subsidy application is made available to everyone by the CRA.

– Businesses that operate as Proprietorships (ie sole owners of unincorporated businesses), Corporations, Partnerships (as well as non profit organizations) are all potentially eligible for the CEWS;
– There are up to 3 payroll periods that an employer can qualify to receive the CEWS (March 15 to April 11, April 12 to May 9, and May 10 to June 6).
– To qualify for period 1 (wages paid from March 15 to April 11) business revenue for the calendar month of March (ie March 1st to March 31st 2020) must have dropped at least 15% compared to March of 2019.  For added flexibility, an election can be made to use an alternative benchmark to calculate the revenue drop which uses the “average revenue” from the months of January & February of 2020 instead of using the same period last year approach.  Once selected, the employer is required to use that same approach to calculate eligibility for all 3 periods.  This flexibility was added for employers that may not have been in business in March of 2019 or perhaps have seasonal revenues.
– Regardless of whether you use the “month over month” approach or the “alternative benchmark” approach it seems if you are eligible for the CEWS in period 1 then you will automatically be eligible for period 2.  If you are not eligible for period 1 then you would need to experience a 30% drop (April 2020 sales vs April 2019 sales) or (April 2020 sales vs your January & February 2020 average sales) to be eligible for period 2.  If you are eligible for period 2 then it seems you are automatically eligible for period 3 as well.  If you are not eligible for period 2 then you need to experience a 30% revenue drop (May 2020 sales vs May 2019 sales) or (May 2020 sales vs your January & February 2020 average sales).
– The subsidy during a period is equal to the greater of 75% of the wages & salaries paid up to $847 per week per employee or 75% of the employee’s pre crisis earnings up to $847 per week. This means an employer could technically receive up to 100% of first 75% of the pre-crisis earnings.  Pre-crisis earnings are determined by the average remuneration paid during the period January 01, 2020 to March 15, 2020.  Allowances are made to discount any full weeks during that pre-crisis period the employee didn’t work (ie vacation) so it will not reduce their average.
– The 75% subsidy extends to new employees that are hired (but not non arms length family members hired).
– Some taxable benefits are included in the calculation of remuneration (but not personal use of auto, stock options, or severance pay).
– Wages & Salaries paid to non arms length employees (ie business owners & family members) also qualify provided those people were already employed prior to March 15th.  The limitation for non-arms length employees is the lesser of $847 per week and 75% of the average of their pre-crisis earnings (defined as earnings during the period between January 1st and March 15th).
– No upper limits to how much an employer can receive and employers are expected to “do their best” to bring the levels of wages and salaries back to pre-crisis levels.
– A further incentive of a 100% refund of the employer’s share of CPP and EI premiums payable on salaries & wages paid to arm’s length employees who are being paid to “stay home” is available provided the employer qualifies for the CEWS for those employees.  CPP and EI is still required to be deducted from those wages & salaries, it is just the employer’s portion that is refundable.

– The subsidy is not available on the wages and salaries on any employees who are effectively eligible for CERB benefits.  To further clarify, the subsidy is not eligible for employees who have been without remuneration for 14 or more consecutive days in the following periods;
March 15 to April 11
April 12 to May 9
May 10 to June 6.
It looks like there will be some mechanism whereby an employee who is rehired during a period while they have received the $2,000 CERB benefit will have that payment clawed back.  This could potentially discourage employees from wanting to return to work, or at least to consider the actual date in which they would be willing to come back to work.
– Period 1 would be considered wages & salaries paid between March 15th and April 11th
To qualify: You experienced a 15% drop in Revenue over March 2019 or a 15% drop in Revenue over the average of January & February 2020
(if you select the average of January & February (rather than March 2019) then you must use that same benchmark for periods 2 and 3)
– Period 2 would be considered wages & salaries paid between April 12th and May 9th
To qualify: You were eligible for period 1 or experienced a 30% drop in Revenue over April 2019 or a 30% drop in Revenue over the average of January & February 2020
– Period 3 would be considered wages & salaries paid between May 10th and June 6th
To qualify: You were eligible for period 2 or experienced a 30% drop in Revenue over May 2019 or a 30% drop in Revenue over the average of January & February 2020
– Applications will be processed through the CRA My Business Account portal, so a business that wishes to apply for this credit should either have an online CRA My Business Account, or should be in the process of registering for that service.  In order to have a CRA My Business Account the client will first need to have personally registered with the CRA or with a Sign in Partner and already received their CRA security code in the mail.

https://www.canada.ca/en/revenue-agency/news/cra-multimedia-library/businesses-video-gallery/register-mybusiness-account.html

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html

– Stiff penalties expected to be imposed for fraudulent claims or for manipulating revenues which may include; repayment of the claim, fines, possible imprisonment, and a penalty equal to 25% of the subsidy claimed for manipulating revenue.
– If you are eligible for both the 10% wage subsidy (announced earlier in March) and the 75% CEWS then any benefit an employer has received under the 10% wage subsidy will reduce the amount of the CEWS.
– The CEWS payments will be made via a direct deposit into the employers bank account.  If your business is not already on direct deposit with the CRA you can set up Direct Deposit from within the CRA My Business Account portal.
– If an employer does not qualify for the 75% CEWS, they will still qualify for the 10% Wage subsidy; which is a program whereby any wages and salaries paid between March 15th and June 18th qualify for a 10% rebate (up to a maximum of $1,375 per employee).  This 10% subsidy is claimed by reducing your monthly (or bi-weekly) source deduction payments by the amount of the credit rather than by a direct deposit from the CRA.


Immediately below is a link to the latest information on the CEWS

https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

Original post April 3, 2020 (links updated April 9, 2020)

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. 

This program will roll out soon and interested businesses should work with their current financial institutions.

Here are the links to the Major banks and their information regarding Covid-19 assistance.  Please note that some banks do not yet have available information on the CEBA.

Royal Bank of Canada
https://www.rbc.com/covid-19/business.html

Scotiabank
https://www.scotiabank.com/ca/en/personal/scotia-support/latest-updates/business-banking/small-business/supporting-our-customers-is-our-top-priority.html

Toronto Dominion Bank
https://www.td.com/ca/en/personal-banking/covid-19/small-business-relief/

CIBC
https://www.cibc.com/en/business/covid-19/emergency-business-account.html

National Bank
https://www.nbc.ca/business/important-notices/emergency-account.html

Bank of Montreal
https://www.bmo.com/small-business/financial-relief-loc/#/login?PID=MBLBC&language=en

https://www.canada.ca/en/department-finance/news/2020/04/additional-details-on-the-canada-emergency-wage-subsidy.html

Additional Details on the Canada Emergency Wage Subsidy

From: Department of Finance Canada

Backgrounder

To help employers keep and return workers to their payroll through the challenges posed by the COVID-19 pandemic, the Prime Minister, Justin Trudeau, announced the new Canada Emergency Wage Subsidy on March 27, 2020. This would provide a 75-per-cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.

What It Means for Canadian Employers

To help employers keep and return workers to their payroll through the challenges posed by the COVID-19 pandemic, the Prime Minister, Justin Trudeau, announced the new Canada Emergency Wage Subsidy on March 27, 2020. This would provide a 75-per-cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.

This wage subsidy aims to prevent further job losses, encourage employers to re-hire workers previously laid off as a result of COVID-19, and help better position Canadian companies and other employers to more easily resume normal operations following the crisis. While the Government has designed the proposed wage subsidy to provide generous and timely financial support to employers, it has done so with the expectation that employers will do their part by using the subsidy in a manner that supports the health and well-being of their employees.

Eligible Employers

Eligible employers would include individuals, taxable corporations, partnerships consisting of eligible employers, non-profit organizations and registered charities.

Public bodies would not be eligible for this subsidy. Public bodies would generally include municipalities and local governments, Crown corporations, wholly owned municipal corporations, public universities, colleges, schools and hospitals.

This subsidy would be available to eligible employers that see a drop of at least 15 per cent of their revenue in March 2020 and 30 per cent for the following months (see Eligible Periods). In applying for the subsidy, employers would be required to attest to the decline in revenue.

We encourage all eligible employers to rehire employees as quickly as possible and to apply for the Canada Emergency Wage Subsidy if they are eligible. To ensure that the Canada Emergency Response Benefit (CERB) applies as intended, the Government will consider implementing an approach to limit duplication.  This could include a process to allow individuals rehired by their employer during the same eligibility period to cancel their CERB claim and repay that amount.

Calculating Revenues

An employer’s revenue for this purpose would be its revenue in Canada earned from arm’s-length sources. Revenue would be calculated using the employer’s normal accounting method, and would exclude revenues from extraordinary items and amounts on account of capital.

Today, the government is clarifying that employers would be allowed to calculate their revenues under the accrual method or the cash method, but not a combination of both. Employers would select an accounting method when first applying for the CEWS and would be required to use that method for the entire duration of the program.

For registered charities and non-profit organizations, the calculation will include most forms of revenue, excluding revenues from non-arm’s length persons. These organizations would be allowed to choose whether or not to include revenue from government sources as part of the calculation. Once chosen, the same approach would have to apply throughout the program period.

Amount of Subsidy

The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:

• 75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
• the amount of remuneration paid, up to a maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration, whichever is less.

In effect, employers may be eligible for a subsidy of up to 100 per cent of the first 75 per cent of pre-crisis wages or salaries of existing employees. These employers would be expected where possible to maintain existing employees’ pre-crisis employment earnings.

The pre-crisis remuneration for a given employee would be based on the average weekly remuneration paid between January 1 and March 15 inclusively, excluding any seven-day periods in respect of which the employee did not receive remuneration.

Employers will also be eligible for a subsidy of up to 75 per cent of salaries and wages paid to new employees.

Eligible remuneration may include salary, wages, and other remuneration like taxable benefits. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of the employee’s income tax obligation. However, it does not include severance pay, or items such as stock option benefits or the personal use of a corporate vehicle.

A special rule will apply to employees that do not deal at arm’s length with the employer. The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of the lesser of $847 per week and 75 per cent of the employee’s pre-crisis weekly remuneration. The subsidy would only be available in respect of non-arm’s length employees employed prior to March 15, 2020.

There would be no overall limit on the subsidy amount that an eligible employer may claim.

Employers are expected to make their best effort to top-up employees’ salaries to bring them to pre-crisis levels.

Refund for Certain Payroll Contributions

Today, the Government is proposing to expand the CEWS by introducing a new 100 per cent refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund would cover 100 per cent of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees.

In general, an employee will be considered to be on leave with pay throughout a week if that employee is remunerated by the employer for that week but does not perform any work for the employer in that week. This refund would not be available for eligible employees that are on leave with pay for only a portion of a week.

This refund would not be subject to the weekly maximum benefit per employee of $847 that an eligible employer may claim in respect of the CEWS. There would be no overall limit on the refund amount that an eligible employer may claim.

For greater certainty, employers would be required to continue to collect and remit employer and employee contributions to each program as usual. Eligible employers would apply for a refund, as described above, at the same time that they apply for the CEWS.

Eligible Periods

Eligibility would generally be determined by the change in an eligible employer’s monthly revenues, year-over-year, for the calendar month in which the period began.

Today, the government is announcing that all employers would be allowed to calculate their change in revenue using an alternative benchmark to determine their eligibility. This would provide more flexibility to employers for which the general approach may not be appropriate, including high-growth firms, sectors that faced difficulties in 2019, non-profits and charities, as well as employers established after February 2019. Under this alternative approach, employers would be allowed to compare their revenue using an average of their revenue earned in January and February 2020. Employers would select the general year-over-year approach or this alternative approach when first applying for the CEWS and would be required to use the same approach for the entire duration of the program

• ABC Inc. is a start-up that started its operations last September.  It reported revenues of $100,000 in January and $140,000 in February, for a monthly average of $120,000. In March, its revenues dropped to $90,000. Because revenues in March are 25 per cent lower than $120,000, ABC inc. would be eligible for the CEWS for the first claiming period. To be eligible for the following claiming period, ABC Inc. revenues would have to be $84,000 or less for the month of April (that is, 30 per cent lower than $120,000).

The amount of wage subsidy (provided under the COVID-19 Economic Response Plan) received by the employer in a given month would be ignored for the purpose of measuring year-over-year changes in monthly revenues.

• For example, if revenues in March 2020 were down 20 per cent compared to March 2019, the employer would be allowed to claim the CEWS (as calculated above) on remuneration paid between March 15 and April 11, 2020.
• Alternatively, this employer could use its average revenue from the months of January and February 2020, instead of March 2019, to determine if it is eligible for the CEWS.
• Once an approach is chosen, the employer would have to apply it throughout the program period.
  The table below outlines each claiming period, the required reduction in revenue and the reference period for eligibility.

Eligible Periods
	Claiming period	Required reduction in revenue	Reference period for eligibility
Period 1	March 15 to April 11	15%	March 2020 over: March 2019 or Average of January and February 2020
Period 2	April 12 to May 9	30%	April 2020 over: April 2019 or Average of January and February 2020
Period 3	May 10 to June 6	30%	May 2020 over: May 2019 or Average of January and February 2020

Eligible employees

An eligible employee is an individual who is employed in Canada.

Eligibility for the CEWS of an employee’s remuneration, will be limited to employees that have not been without remuneration for more than 14 consecutive days in the eligibility period, i.e., from March 15 to April 11, from April 12 to May 9, and from May 10 to June 6.

This rule replaces the previously announced restriction that an employer would not be eligible to claim the CEWS for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit.

How to Apply

Eligible employers would be able to apply for the CEWS through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.

Ensuring Compliance

In order to maintain the integrity of the program and to ensure that it helps Canadians keep their jobs, the employer would be required to repay amounts paid under the CEWS if they do not meet the eligibility requirements. Penalties may apply in cases of fraudulent claims. The penalties may include fines or even imprisonment. In addition, anti-abuse rules would be put in place to ensure that the subsidy is not inappropriately obtained and to help ensure that employees are paid the amounts they are owed.

Employers that engage in artificial transactions to reduce revenue for the purpose of claiming the CEWS would be subject to a penalty equal to 25 per cent of the value of the subsidy claimed, in addition to the requirement to repay in full the subsidy that was improperly claimed.

Interaction with 10 per cent Wage Subsidy

On March 25, 2020, the COVID-19 Emergency Response Act, which included the implementation of a temporary 10 per cent wage subsidy, received Royal Assent. For employers that are eligible for both the CEWS and the 10 per cent wage subsidy for a period, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the CEWS in that same period.

Interaction with the Work-Sharing Program

On March 18, 2020, the Prime Minister announced an extension of the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

For employers and employees that are participating in a Work-Sharing program, EI benefits received by employees through the Work-Sharing program will reduce the benefit that their employer is entitled to receive under the CEWS.

Government Assistance

The usual treatment of tax credits and other benefits provided by the government would apply. As a consequence, the wage subsidy received by an employer would be considered government assistance and be included in the employer’s taxable income.

Assistance received under either wage subsidy would reduce the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration.

How employers will benefit from the CEWS

Maude and Stéphane own a corporation that operates an automobile repair shop in Saint Boniface, Manitoba. They are working full time, each drawing a salary of $1,300 per week, and have three part-time employees, each earning $800 per week, for a total weekly payroll of $5,000. Maude and Stéphane have reduced their opening hours due to decreased demand for their services. They had initially laid off their employees, but they have now decided to re-hire them following the announcement of the Canada Emergency Wage Subsidy. Their employees are not being asked to report to work during this challenging period.

Maude and Stéphane are now keeping their employees on the payroll, paying them 75 per cent of their pre-crisis salary ($600 per week). Maude and Stéphane would be eligible for a weekly wage subsidy of $3,494 ($847 for each of themselves and $600 for each of their employees). Maude and Stéphane would also be eligible for a 100-per-cent refund of their employer-paid contributions to Employment Insurance and the Canada Pension Plan in respect of their employees, providing an additional benefit of up to $124 per week.

At the end of each claiming period, Maude and Stéphane would submit an application through the Canada Revenue Agency portal, attesting that their decline in revenues in each month is sufficient to qualify, when compared to the average of January and February. They would also report the total remuneration paid to themselves and their furloughed employees during the month. As Maude and Stéphane have access to direct deposits with the Canada Revenue Agency, they would receive their subsidy shortly after each application.

Canada’s COVID-19 Economic Response Plan– Cost and Implementation

These measures are part of the Government of Canada’s COVID-19 Economic Response Plan – a comprehensive plan to help ensure that Canadians can pay for essentials like mortgages, rent and groceries, and to help employers continue to pay their employees and their bills during this time of uncertainty.

Protecting Health and Safety
	2020-2021 Impact
COVID-19 Response Fund (including $500 million in support for Provinces and Territories (2019-2020))	$1.1 billion
Funding for Personal Protective Equipment and Supplies (of which, $200 million in 2019-20)	$2 billion
Total – Protecting Health and Safety	$3 billion
Direct Support Measures
Canada Emergency Response Benefit	$24 billion
Enhanced GST Credit	$5.5 billion
Enhanced Canada Child Benefit	$1.9 billion
Temporary Business Wage Subsidy	$975 million
Canada Emergency Wage Subsidy	$73 billion
Canada Student Loan Payments	$190 million
Support for Indigenous Communities	$305 million
Support for the homeless (through Reaching Home)	$157.5 million
Support for women’s shelters and sexual assault centres, including for facilities in Indigenous communities	$50 million
Support for Seniors (of which, $9M in 2019-20), Children and Youth	$16.5 million
Support for Food Banks and Local Food Organizations (of which, $25M in 2019-20)	$100 million
Lower RRIF Minimum Withdrawal	$495 million
Support for the Air Transportation Sector	$331.4 million
Total – Direct Support Measures	$107 billion
Liquidity Support
CRA/CBSA liquidity support to businesses and individuals
Income Tax Payment Deferral until September	$55 billion
Sales Tax Remittance and Customs Duty Payments Deferral	$30 billion
Total – CRA/CBSA liquidity support	$85 billion
Business Credit Availability Program (BCAP) (through BDC and EDC)
Small and Medium-sized Enterprise Loan and Guarantee program	$40 billion
Canada Emergency Business Account	$25 billion
Credit and liquidity support for the Agricultural Sector	$5.2 billion
Credit and liquidity support through the Bank of Canada, OSFI, CMHC and commercial lenders	$500 billion +
Total – BCAP, other credit and liquidity support	$570 billion +

Province Providing One-time Financial Assistance During School and Child Care Closures 

April 6, 2020 1:15 P.M.

Office of the Premier 

TORONTO — The Ontario government is offering direct financial support to parents while Ontario schools and child care centres remain closed as a result of the COVID-19 outbreak.

The new Support for Families initiative offers a one-time payment of $200 per child 0 to 12 years of age, and $250 for those 0 to 21 years of age with special needs.

The announcement was made today by Premier Doug Ford, Christine Elliott, Deputy Premier and Minister of Health, and Stephen Lecce, Minister of Education.

“During this extraordinary time, we’re doing everything we can to support parents to keep everyone safe and ensure our children continue to learn and stay mentally active,” said Premier Ford. “This one-time funding will allow parents to access additional tools for our kids to use while at home and studying remotely. I want to remind everyone to stay at home and only go out if absolutely necessary. It’s the only way we are going to defeat this terrible virus.”

“Our aim during these extraordinarily challenging times is to continue supporting those impacted hardest by the COVID-19 outbreak — Ontario families,” said Minister Lecce. “School and child care closures have disrupted family life a great deal and our government will do whatever it takes to support them and keep them safe. This funding will flow to parents directly, to offer them immediate relief during this difficult time.”

Families can complete a simple online application at Ontario’s Support for Families web page to access this financial support. Parents already receiving Support for Parents payments through direct deposit will be automatically eligible for this financial support and do not need to submit a new application.

“As we reach a critical juncture in our fight against COVID-19, it’s important schools and child care centres remain closed,” said Minister Elliott. “Keeping Ontarians safe is our number one priority and it’s also our duty to help parents who are supporting their children and families during this unprecedented time.”

Through this initiative the government is providing over $300 million in relief to parents across Ontario as part of Ontario’s Action Plan: Responding to COVID-19.

“With schools and child care closed, life has become more difficult for families and they need some extra help,” said Rod Phillips, Minister of Finance. “Ontario’s Action Plan: Responding to COVID-19, includes $7 billion in direct support for people and jobs, and $10 billion in cash flow support for people and businesses. This $17 billion plan includes direct relief for parents when they need it the most.”

Quick Facts

• Ontario public schools will remain closed to teachers until Friday, May 1, 2020, and to students until Monday, May 4, 2020, to keep Ontario’s students safe from COVID-19. Private schools, licensed child care centres and EarlyON programs will also remain closed until April 13, according to the Declaration of Emergency, which only allows closures to be extended for one 14-day period at a time.
• On March 22, Ontario announced its effort to support health care and frontline workers with emergency child care services across the province. Frontline workers who make use of these services are also eligible for this one-time payment.
• The Government reiterated its focus on positive mental health supports for students dealing with the challenges of COVID-19. Premier Ford announced an investment of up to $12 million to deliver online and virtual mental health supports across our province, supporting students, families and frontline workers. 
• Ontario launched the second phase of Learn at Home and Apprendre à la maison, a new online portal that provides resources for families so students can continue their education while schools are closed due to the ongoing COVID-19 situation.
• Visit Ontario’s website to learn more about how the province continues to protect Ontarians from COVID-19.

https://www.canada.ca/en/department-finance/news/2020/04/government-announces-details-of-the-canada-emergency-wage-subsidy-to-help-businesses-keep-canadians-in-their-jobs.html

From: Department of Finance Canada 

News release

To help Canadians and businesses get through these tough economic times, the Prime Minister, Justin Trudeau, announced that the Government is proposing to introduce a wage subsidy of 75 per cent for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. 

April 1, 2020 – Ottawa, Ontario – Department of Finance Canada

The Government of Canada is taking immediate, significant and decisive action to support Canadians and businesses facing hardship as a result of the global COVID-19 outbreak.

To help Canadians and businesses get through these tough economic times, the Prime Minister, Justin Trudeau, announced that the Government is proposing to introduce a wage subsidy of 75 per cent for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.

This measure, which is a part of the Government of Canada’s COVID-19 Economic Response Plan, would support businesses that are hardest hit by the COVID-19 pandemic and would help protect the jobs Canadians depend on during these difficult times.

Today, Finance Minister Bill Morneau, the Minister of Small Business, Export Promotion and International Trade, Mary Ng, and the Minister of Innovation, Science and Industry, Navdeep Bains, announced the details of the proposed Canada Emergency Wage Subsidy:

• The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
• Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.
• Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
• For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
• An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.

The Canada Emergency Wage Subsidy is a key measure to ensure that workers are able to count on a source of income through this difficult time. It will enable employers to re-hire workers previously laid off, and to keep those who are already on payroll, so that Canada’s workforce and supply chains are able to return from this crisis in a strong position.

Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details regarding how to apply for the program will follow. Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

The government will continue to carefully monitor all developments relating to the COVID-19 outbreak and will continue to take further action to protect Canadians and the economy.

Quick facts

• The government has taken action to support Canadian businesses through the outbreak of COVID-19, with targeted new initiatives that:
  • Allow businesses, including self-employed individuals, to defer all Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments until June, as well as customs duties owed for imports. This measure is the equivalent of providing up to $30 billion in interest-free loans to Canadian businesses. It will help businesses so they can continue to pay their employees and their bills, and help ease cash-flow challenges across the country.
  • Launch the new Canada Emergency Business Account. This program will provide up to $25 billion to eligible financial institutions so they can provide interest-free loans to small businesses, including not-for-profits. These loans – guaranteed and funded by the Government of Canada – will ensure that small businesses have access to the capital they need, at a zero-per-cent interest rate, so they can pay for rent and other important costs over the next number of months.
  • Launch the new Small and Medium-sized Enterprise Loan and Guarantee program that will enable up to $40 billion in lending, supported through Export Development Canada and Business Development Bank, for guaranteed loans when small businesses go to their financial institutions to help weather the impacts of COVID-19. This is intended for small and medium-sized companies that require greater help to meet their operational cash flow requirements.
  • Extend the maximum duration of the Work-Sharing program, from 38 weeks to 76 weeks, for workers who agree to reduce their normal working hours because of developments beyond the control of their employers.
  • Increase credit available for farmers and the agri-food sector through Farm Credit Canada.
  • Defer the payment of income taxes. The government is allowing all taxpayers to defer, until August 31, 2020, the payment of income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to new balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

https://www.wsib.ca/en/news-release/wsib-announces-19-billion-financial-relief-ontario-businesses

WSIB announces $1.9 billion in financial relief for Ontario businesses 

Confirms benefit payments will continue to Ontarians with work related injuries or illness

Toronto, March 26, 2020 –  The Workplace Safety and Insurance Board (WSIB), in conjunction with the Government of Ontario, has developed a financial relief package worth $1.9 billion to help employers reduce the financial burden of the rapidly evolving COVID-19 situation.

“We have worked closely with the Government of Ontario to help Ontario businesses as they face this unprecedented challenge,” said Elizabeth Witmer, Chair of the WSIB. “Ontario businesses will now be able to defer their WSIB premium payments up to six months.”

All employers covered by the WSIB’s workplace insurance are automatically eligible for the financial relief package. This means that businesses can defer premium reporting and payments until August 31, 2020. This premium deferral impacts businesses who report and pay monthly, quarterly or annually based on their insurable earnings.

Additionally, no interest will accrue on outstanding premium payments and no penalties will be charged during this six-month deferral period.

This relief package also applies to Schedule 2 employers – publicly funded organizations (municipalities, hospitals, school boards), and other businesses who are involved in federally regulated industries.

The WSIB also confirmed that while its offices remain closed to the public during this time, it remains committed to serving the people of Ontario. Benefit payments will continue for people with work related injuries or illness. New claims can be submitted and will be adjudicated, and our online services, including document upload, are available. Dedicated customer support teams are also available by phone to provide urgent support.

“Our relief package will support businesses in this difficult time while protecting coverage for people who need us,” said Tom Teahen, President and CEO of the WSIB. “We know how tough this situation is for everyone and we are here to help.”

Businesses can learn more by visiting the WSIB’s COVID-19 information page and continue to manage their account information through the WSIB’s online services.

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

Backgrounder

These measures are a part of the Government of Canada’s COVID-19 Economic Response Plan, which provides direct support and tax deferrals to Canadian workers and businesses to help them in these difficult times.

The Government of Canada is making additional investments to support Canadian businesses from the economic impacts of COVID-19. These new investments provide support to financial institutions and allow them to quickly provide credit and liquidity options for a range of businesses.

These measures are a part of the Government of Canada’s COVID-19 Economic Response Plan, which provides direct support and tax deferrals to Canadian workers and businesses to help them in these difficult times.

Deferral of Sales Tax Remittance and Customs Duty Payments

Deferral of Customs Duty and Sales Tax for Importers

New Loan Programs for Businesses

Canada Revenue Agency’s Additional Measures for Individuals and Businesses

Deferral of Sales Tax Remittance and Customs Duty Payments

In order to provide support for Canadian businesses during these unprecedented economic times, the Government is deferring Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020.

This measure could provide up to $30 billion in cash flow or liquidity assistance for Canadian businesses and self-employed individuals over the next three months

GST/HST Remittance Deferral

The GST/HST applies to sales of most goods and services in Canada and at each stage of the supply chain. Vendors must collect the GST/HST and remit it (net of input tax credits) with their GST/HST return for each reporting period.

Vendors with annual sales of more than $6 million remit and report monthly, and those with annual sales of $1.5 million to $6 million are able to remit and report on a quarterly basis (or monthly if they choose to). Small vendors can report annually.

The GST/HST amounts collected are generally due by the end of the month following the vendor’s reporting period: e.g., for a monthly filer, the GST/HST amounts collected on its February sales are due by the end of March.

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.

Businesses in need of information about their particular obligations may contact the Canada Revenue Agency or refer to its website.

Deferral of Customs Duty and Sales Tax for Importers

Imported goods by businesses are generally subject to the GST, at a rate of 5 per cent, as well as applicable customs duties, which vary by product and country of origin. While the vast majority of imports enter Canada duty-free, some tariffs remain, especially on consumer goods.

The Customs Act, for which the Minister of Public Safety and Emergency Preparedness is responsible and which is administered by the Canada Border Services Agency (CBSA), governs the levying and payment of customs duties in Canada.

Typically, payments owing for customs duties and the GST on imports are due before the first day of the month following the month in which the Statements of Accounts are issued.

Section 33.7(1) of the Customs Act allows the Minister of Public Safety and Emergency Preparedness or an officer designated by the President of the CBSA to extend, in writing, the timeline for accounting or payment of amounts owing.

Under this authority, payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.

Businesses in need of information about their particular accounting and payment obligations on imported goods may contact the Canada Border Services Agency for more details.

New Loan Programs for Businesses

Canada Emergency Business Account

To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada is announcing the launch of the new Canada Emergency Business Account, which will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).

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.

A New Co-Lending Program for Small and Medium Enterprises

To provide additional liquidity support for Canadian businesses, the Co-Lending Program will bring the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.

Eligible businesses may obtain incremental credit amounts up to $6.25 million BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers. The potential for lending for this program will be $20 billion.

New Business Credit Availability Program Measures
Measure	Size
Canada Emergency Business Account	$25B
SME Loan and Guarantee program
EDC Guarantee	$20B
BDC Co-Lending Program	$20B
Total	$65B

Canada Revenue Agency’s Additional Measures for Individuals and Businesses

The Canada Revenue Agency (CRA) understands that individuals and businesses might be dealing with difficulties filing their income and benefit returns, and could experience cash-flow challenges in the coming months. In response, the CRA will be applying these additional measures:

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.

Objections

Any objections related to Canadians’ entitlement to benefits and credits have been identified as a critical service and will continue to be processed during the COVID-19 crisis. As a result, there should not be any delays associated with the processing of these objections.

With respect to objections related to other tax matters filed by individuals and businesses, the CRA is currently holding these accounts in abeyance. No collection action will be taken with respect to these accounts during this period of time.

Extending the deadline for filing an objection

For any objection request due March 18 or later, the deadline is effectively extended until June 30, 2020.

Canada Pension Plan/Employment Insurance (CPP/EI) appeals to the Minister

In cases where taxpayers wish to file an appeal in relation to CPP/EI rulings decision, they are encouraged to do so through MyAccount to avoid potential delays.

The CPP/EI appeals program is currently only actioning appeals that are related to cases where EI benefits are pending. These cases will be treated on a priority basis. All other appeals will be actioned when normal services resume.

In addition, the CPP/EI Appeals to the Minister program will exercise discretion on a case by case basis when additional time is required to respond to a request.

Deadlines for charities

CRA is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020 and December 31, 2020. This will allow charities more time to complete and submit their T3010.

Suspending audit activities

CRA will not initiate contact with taxpayers for audits, with certain exceptions. This includes:

• no new audits being launched;
• no requests for information related to existing audits; and
• no audits should be finalized and no reassessments should be issued.

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.

Taxpayer relief requests

Taxpayers who are unable to file a return or make a payment by the tax-filing and payment deadlines because of COVID-19 can request the cancellation of penalty and interest charged to their account. Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met. For more information about deadlines, see Helping Canadians with the economic impact of the COVID-19 Pandemic.

For more information about taxpayer relief and how to make a request to the CRA to have interest and/or penalties cancelled, please go to Canada.ca/taxpayer-relief.

For more information, visit Helping Canadians with the economic impact of the COVID-19 Pandemic.

From: Department of Finance Canada

News release

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB).

March 25, 2020 – Ottawa, Ontario – Department of Finance Canada

The Government of Canada is taking strong, immediate and effective action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. No Canadian should have to choose between protecting their health, putting food on the table, paying for their medication or caring for a family member.

To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.

Canadians who are already receiving EI regular and sickness benefits as of today would continue to receive their benefits and should not apply to the CERB. If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply. Canadians who are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

The government is working to get money into the pockets of Canadians as quickly as possible. The portal for accessing the CERB would be available in early April. EI eligible Canadians who have lost their job can continue to apply for EI here, as can Canadians applying for other EI benefits.

Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020.

This benefit would be one part of the government’s COVID-19 Economic Response Plan, to support Canadian workers and businesses and help stabilize the economy by helping Canadians pay for essentials like housing and groceries, and helping businesses pay their employees and bills during this unprecedented time of global uncertainty.

On March 24th I made the difficult decision to close my home office for 14 days. Although Accountants have been deemed essential services in Ontario, I have closed my home office to all drop offs and pick ups till April 10th.

I am still working and preparing tax returns. You can send your information electronically. We have set up a secure email process. Please email to request a guest account.

Personal tax filing deadline has been delayed to June 1, 2020. If a balance is owing you have until August 31, 2020 to make a payment.

For updated information on the economic response to Covid-19 outbreak, please monitor our website update page at www.louiseraynercpa.ca

Louise Rayner, CPA, CMA

Louise Rayner CPA Professional Corporation

(905) 466-2954

Flexibility for Taxpayers
In order to provide greater flexibility to Canadians who may be experiencing hardships during the COVID-19 outbreak, the Canada Revenue Agency will defer the filing due date for the 2019 tax returns of individuals, including certain trusts.
 For individuals (other than trusts), the return filing due date will be deferred until June 1, 2020.  However, the Agency encourages individuals who expect to receive benefits under the GSTC or the Canada Child Benefit not to delay the filing of their return to ensure their entitlements for the 2020-21 benefit year are properly determined.
 For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.

The Canada Revenue Agency will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

In order to reduce the necessity for taxpayers and tax preparers to meet in person during this difficult time, and to reduce administrative burden, effective immediately the Canada Revenue Agency will recognize electronic signatures as having met the signature requirements of the Income Tax Act, as a temporary administrative measure. This provision applies to authorization forms T183 or T183CORP, which are forms that are signed in person by millions of Canadians every year to authorize tax preparers to file taxes.

Flexibility for Businesses Filing Taxes

The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020.  This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

The Canada Revenue Agency 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.

Link to more details about the economic response to Covid-19
https://www.canada.ca/en/department-finance/economic-response-plan.html