As many of you have heard, there have been some updates to financial support provided by the federal and provincial governments. We don’t know all the details at this point but will keep you updated as much as we can.
Here is an summary of new benefits and updates:
Tax Filing Deadlines
Individuals
The deadline to file your income tax and benefit return will be deferred until June 1, 2020.
The deadline to pay any balance due for your individual income tax and benefit return for 2019 has been extended from April 30, 2020, to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.
Self-Employed Individuals
For self-employed individuals or those who have spouses or common-law partners that are self-employed, the deadline to pay any balance due for your individual income tax and benefit return has been extended from April 30, 2020, to September 1, 2020.
Businesses
The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020
$40,000 Loan for Small Businesses
Small businesses will be able to apply to their banks for loans up to $40,000. These loans will be interest free for one year and potentially $10,000 of the loan can be forgiven. More details on who is eligible, should follow soon.
GST Deferral
Generally, GST/HST remittances and payments that become due in March, April and May can now be deferred until June 30, 2020. Deferrals will similarly be available for customs duty and sales taxes for importers. It is unclear whether GST/HST returns will have to be filed while the deferral is in effect. More details should follow soon.
Enhanced wage subsidy
The wage subsidy rate will be increased to 75 per cent from 10 per cent for qualifying businesses’ wages paid between March 15, and June 20th. More details, presumably including revised per employee and per employer limits, should follow soon.
The new Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 a month for up to 4 months to those who are not normally eligible for EI. Those eligible include those who are self employed (including contract workers), those sick, quarantined or taking of care of someone due to Covid-19
The Canada Emergency Response Benefit will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number. More information can be found HERE.
BC Rental Support
The Province of BC has introduced a new temporary rental supplement and are halting evictions and freezing rents. In addition, a new rental supplement will help households by offering up to $500 a month for up to three months for those who do not qualify for other rental subsidies. More information can be found HERE.
Bank of Canada Interest Rate
The interest rate for Bank of Canada has been lowered by 0.25%. More information can be found HERE.