And business relief in Canada for CO

Tax Question:

Is there any tax and business relief for businesses in Canada with the COVID-19 pandemic? Updated March 30th.

Facts:

The government makes new announcements daily. Many of the announcements are made before the related money or programs are ready. Thus, the confusion and “clarification” later. The best place to get the latest on the federal programs is Government and COVID-19 and Canada’s COVID-19 Economic Response Plan.

Discussion:

1. British Columbia Deferred

Tax Payments

Effective immediately, B.C. is extending filing and payment deadlines for the following taxes until September 30, 2020:

• Employer health tax • Provincial sales tax • Carbon tax

• Motor fuel tax

• Tobacco tax

2. Wage subsidy

“The government of Canada has announced an up to 75% wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll.

“More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month.” Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. Previously, the temporary wage subsidy was equal to 10%.

3. Delay of tax payments to August 31, 2020

“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.”

4. Deferral of GST and Customs Duty Payments

“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. “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. Payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020”

5. Temporary suspension of audits

“The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income