Here is a summary of the new personal and corporate COVID-19 tax deadlines, along with a description of the new benefits available to Canadians.
Deadlines
CRA has extended the personal tax filing due date for the 2019 tax returns of individuals to June 1, 2020.
Note that for Corporate Tax Clients, there has been no extension for filing your returns. The deadline remains the same as prior to Covid-19.
Payment Extensions
All personal and corporate tax filers that owe after March but prior to September with have taxes due by August 31, 2020. No interest or penalties will accumulate on these amounts during this period.
Corporate Instalment payments scheduled for the 2020 fiscal year, from March to August, can now be deferred without fear of interest charges.
There is no extension for HST or Payroll Remittances. These must be paid via the current schedule.
New Benefits
Wage Subsidy for Employers
To fight the issues with COVID-19 and loss of employment, the government has created, “the subsidy will be equal to 75% of the remuneration paid during that period. The subsidy will last until August 31, 2020
Rent Subsidy for Landlords
Landlords can apply to receive a 75% subsidy from the government with the hopes the tenants will receive a direct discount for the months applied for.
CRA Audit Activity
CRA has temporarily stopped a majority of the audits and will not initiate new ones until it deems it safe to do so.
CEBA
The CEBA program has created $40,000 loans with applications made by businesses through their banks and credit unions. By paying 75% of the loan by December 31, 2022, 25 per cent of it will be forgiven, up to $10,000. If you fail to repay 75% of the loan, then the balance will be converted into a 3-year term loan at 5% interest.
For more information on COVID-19 tax deadlines, contact our team of chartered professional accountants in Toronto at BBS today. We proudly assist with Independent Contractor or Consultant Accounting, Small Business Accounting and Bookkeeping, and Payroll Services in Toronto.
