Tax Updates – March 2020

Earlier today the government announced some details of relief for individuals and corporations as a result of the COVID-19 crisis. While full details aren’t yet known, below is a summary of some of the major tax items. The full details released by the government can be viewed here.

Key Personal Measures

  1. The due date for personal tax returns is now June 1, 2020.
  2. Any taxes that are currently owed or will be owing before September 30, 2020, can be deferred until after August 31, 2020. This includes instalment payments.
  3. The due date for trusts with a December 31, 2019 year-end is now May 1, 2020.
  4. A number of Employment Insurance (EI) items have been announced. Read more about these changes in detail on our blog here.
  5. The GST and Canada Child Benefit will be increased:
    • Double the GST benefit for the 2019-2020 benefit year. This will occur by a one-time payment by early May.
    • Increasing the maximum yearly amount for Canada Child Benefit for the 2019-2020 benefit year. This payment will be made as part of the May payment.
  6. The 6 large banks have confirmed support that may include up to a 6-month deferral on mortgage loans and other credit products. You need to speak with your bank directly to see what options are available to you directly.
  7. For those with Canada Student Loans that are being repaid, there will be a 6-month interest-free period.
  8. The required minimum withdrawal from RRIFs will be reduced by 25% for 2020 to account for the decrease in value.

Key Corporate Measures

  1. There was no announcement concerning filing deadlines for corporate tax returns and assume no change for now.
  2. Any taxes that are currently owed or will be owing before September 30, 2020, can be deferred until after August 31, 2020. This includes instalment payments.
  3. For the next 4 weeks, no income tax audits or GST post-assessment reviews will start.
  4. Any interaction for audits currently in process will be temporarily suspended.
  5. Businesses that are eligible for the small business deduction (and non-profits and charities) are able to receive a subsidy up to 10% of the remuneration payable for the next three months. The maximum amount of subsidy is $1,375 per employee and $25,000 for each employer. This support can be accessed immediately by reducing the remittance of income tax withheld on the employees’ remuneration.
  6. The 6 large banks have confirmed support that may include up to a 6-month deferral on mortgage loans and other credit products. You need to speak with your bank directly to see what options are available to your company directly.

Feel free to get in touch with us for further information or if you need help with any of the above.