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COVID-19: Updates and Support

SB Partners is committed and prepared to address the evolving risk posed by COVID-19


SB Partners Admin on March 24, 2020 in SB Partners News

SB Partners is deemed an essential workplace and will continue to operate at full capacity to ensure client corporate and personal tax filing deadlines are met.

We strongly encourage clients to make use of our client portal or email for delivery of any accounting records and T1 documentation that is required. Alternatively, clients can utilize our secure drop box located right outside our reception doors.

SB Partners is committed to keeping clients informed on the latest COVID-19 developments.

COVID-19: Resources


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Recent Updates

October 26, 2020

Today, the CRA announced the following:

CEBA

  • Canada Emergency Business Account (CEBA) will now be available to businesses that have been operating out of a non-business banking account (i.e. personal bank account).
  • To be eligible, businesses must have been operating as a business as of March 1, 2020, must successfully open a business account at a Canadian financial institution that is participating in CEBA, and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is December 31, 2020.

October 9, 2020

Today, the CRA announced the following:

CEWS

  • The program will be extended until June 2021.
  • The subsidy will remain at the current (Period 8) subsidy rate of up to a maximum of 65% of eligible wages until December 19, 2020. The maximum was previously set to decline to 45% for period 9 (based on November wages).

CEBA

  • An additional interest-free loan of up to $20,000 will be available (in addition to the original CEBA loan of $40,000). Half of this additional financing would be forgivable if repaid by December 31, 2022.
  • Additionally, the application deadline for CEBA is being extended to December 31, 2020.
  • Further details, including the launch date and application process, will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.

Canada Emergency Rent Support (CERS)

  • The new Canada Emergency Rent Subsidy (CECRA has ended), provides rent and mortgage support until June 2021.
  • The rent subsidy would be provided directly to tenants, while also providing support to property owners.
  • The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 percent of eligible expenses until December 19, 2020.
  • Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
  • A top-up Canada Emergency Rent Subsidy of 25 percent for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 percent subsidy.

September 27, 2020

Today, the CRA announced the following:

New Recovery Benefits

If you were receiving CERB, you may be eligible for one of the new recovery benefits retroactive to September 27, 2020 and available until September 25, 2021.


September 23, 2020

Today, the CRA announced the following:

Speech from the Throne

The Government outlined several measures to assist businesses through the pandemic. These include:


September 8, 2020

Today, the CRA announced the following:

Canada Emergency Commercial Rent Assistance (CECRA) extended for one more month

The federal government announced that the CECRA program would be extended by one month to cover rent for September.


August 27, 2020

Today, the CRA announced the following:

New T4 reporting requirements for the tax year 2020

For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, use new other information codes when reporting employment income and retroactive payments in the following periods:

  • Code 57: Employment income – March 15 to May 9
  • Code 58: Employment income – May 10 to July 4
  • Code 59: Employment income – July 5 to August 29
  • Code 60: Employment income – August 30 to September 26

Please click here to learn more.


August 20, 2020

Today, the CRA announced the following:

CERB Extension

  • The CERB has been extended to those who are eligible for a maximum of 7 eligibility periods (or 28 weeks total).
  • Please click here to learn more.

August 17, 2020

Today, the CRA announced the following:

Enhanced CEWS and Period 5

Highlights of the program changes for Periods 5-9 include:

  • Applications for Period 5 wage subsidies open today
    The extension of the CEWS, including redesigned program details, until November 21, 2020.
  • Increased eligibility, meaning that all eligible employers who’ve experienced a revenue drop can now qualify for a base subsidy. The subsidy amount is based on the revenue drop.
  • Employers who are especially hard-hit can qualify for a top-up of up to 25%.
  • Provide certainty for employers that have already made business decisions for July and August, by ensuring they will not receive a subsidy rate lower than they would have under the previous rules.
  • Updated CEWS calculator
  • Please click here to learn more

July 27, 2020

Today, the CRA announced the following:

Payment Deadline Extension

  • They will be extending the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from September 1, 2020, to September 30, 2020.
  • Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020 (includes the late-filing penalty provided return is filed by Sept. 30, 2020).

Interest on Existing Tax Debt

  • They will be waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020 and from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns.

Filing Returns

  • The previously extended filing due dates for individual, corporate, and trust income tax returns remain unchanged. However, CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late provided that it is filed by September 30, 2020.
  • Please click here to learn more

May 1, 2020

Today, the government introduced the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses to help provide relief for small businesses experiencing financial hardship due to COVID-19.


April 11, 2020

Today, the government introduced the COVID-19 Emergency Response Act, No. 2 to help businesses keep Canadians in their jobs.


April 8, 2020

Today, the government announced additional changes to the Canada Emergency Wage Subsidy (CEWS), including an alternative testing method for start-ups or businesses without 2019 revenues;

  • Businesses that fall into this category may apply the calculation of average revenues in January and February 2020 as a comparable to each of March, April and May 2020 revenues for the purposes of the revenue decline.
  • The comparable revenue decline remains at 30% for the April and May 2020 periods, but has been reduced to 15% for the March 2020 period.

April 1, 2020

Finance Minister Bill Morneau announced further details on:


March 30, 2020

Today, Prime Minister Justin Trudeau provided an update on the Government of Canada’s wage subsidy program.

  • Businesses that show a 30% decrease in revenue due to COVID-19 will be eligible for the subsidy
  • This applies to all businesses regardless of size, and includes those in the not-for-profit and charitable sectors
  • The subsidy will cover 75% of salaries on the first $58,700 earned – which equals payments of up to $847 per week
  • This subsidy will be back dated to March 15th, 2020

March 27, 2020

Today the Government of Canada announced:

  • An increase to the wage subsidy from 10% up to 75% for small and medium size businesses. This subsidy will be backdated to Sunday, March 15 , 2020
  • The government will guarantee loans of up to $40,000 for small businesses which will be interest-free for the first year. Under certain conditions, up to $10,000 of the loans could be non-repayable.
  • A deferral of GST/HST payments, as well as duties and taxes on imports until June 2020.
  • An investment of an additional $12 billion in BDC and Export Development Canada to support SMEs with cash flows

Details to follow over the coming days.


March 25, 2020

Finance Minister Rod Phillips released Ontario’s Action Plan: Responding to COVID-19 (March 2020 Economic and Fiscal Update).

  • The government’s action plan is a first step in its response to COVID-19 and includes $7 billion in additional resources for the health care system and direct support for people and jobs.
  • It also will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets.

March 24, 2020

  • John Chisholm, Partner and CEO of SB Partners discusses the impact of COVID-19 on business; provides a 7-step cash flow strategy to help businesses navigate through the uncertainty.

March 23, 2020

  • Provincial government announces it is ordering the closure of all non-essential businesses in the province to help deal with the spread of COVID-19.
  • List of essential workplaces
  • In an effort to combat the impact of COVID-19 the Government of Canada released a series of financial measures in mid-March. 

INDIVIDUALS 

  • Tax Return Due Date Deferral: The personal tax filing due date will be deferred until June 1, 2020. Read more

  • Tax Payment Deferral: Taxpayers may defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020 (also including installments) and before September 2020. Read more

BUSINESSES

  • Tax Payment Extension: Businesses may defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020 and before September 2020. Read more
  • Other Payment and Filing Extensions: No comment was made about changing the filing and payments dates for payroll, GST/HST, and other non-income tax items.

  • Payroll Subsidies: The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum of $1,375 per employee and $25,000 per employer.

OTHER FILINGS AND ADMINISTRATION


  • Trust Filing Due Date Deferral: For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.

  • EFILE Signatures: CRA will recognize electronic signatures as having met the signature requirements of the Income Tax Act, as a temporary administrative measure.

*Source: Key Points – Canada’s COVID-19 Economic Response Plan, March 18, 2020


The safety of our clients, team and community is our top priority. Until further notice, our office will remain closed to the public.