CRA Extension For Filings Under Part XVIII And Part XIX Of The Income Tax Act
The Canada Revenue Agency (CRA) has announced that it will allow filers to defer, until September 1, 2020, the filing of information returns under Part XVIII and Part XIX of the Income Tax Act (related to reporting for certain financial institutions).
Updated Summary Of Issues On The CEBA – Canadian Emergency Business Account
The Canadian Emergency Business Account will now provide up to $40,000 in government-guaranteed loans to businesses that had payrolls last year between $20,000 and $1.5 million. It previously offered loans to business with a narrower range of payrolls, between $50,000 and $1 million.
Up to $10,000 forgiven (25%) if repaid by December 31, 2022.
Updated Summary Of Issues On The Canada Emergency Wage Subsidy (CEWS)
Progress Group updated the original summary document about the CEWS, now that the federal government has passed Bill C-14, a second act respecting certain measures in response to COVID-19 has developed.
Unresolved issues will be consolidated with emerging issues in a new summary document that is being developed. Government will provide refund of employer portion of payroll taxes (EI, CPP) for any employee that is not working but still on payroll for firm using CEWS (details to come).
75% Wage Subsidy For Business…
…that shows 15% drop in revenue for March, 30% Drop in April and May.Revenue can be compared to same months in previous years OR to January/ February 2020 revenues, maximum of $847/ week per employee (equal to $57,800).
The Government announced that firms that qualify in one month will automatically get the following month of CEWS benefits as well.
Canada Emergency Response Benefit (CERB) Update
The federal government announced that the CERB will be expanded to allow more workers access to the program. Changes to the eligibility rules include:
- allowing people to earn up to $1,000 per month while collecting the CERB
- extending the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work as a result of the COVID-19 outbreak
- extending the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19
In addition, the federal government will work with its provincial counterparts to top-up the salaries of essential workers earning less than $2,500 per month.
Announcements Still Pending (details to be announced upon arrival)
Canadian Emergency Commercial Rent Assistance for April May, June
Canadian Emergency Wage Subsidy expected early May.