Taylor Leibow Covid-19 Tax Update

Updates:

January 12, 2022 – Government Extends Loan Forgiveness repayment deadline for the CEBA
January 11, 2022 – COVID-19 Updates for Business
January 6, 2022 – COVID-19 Subsidy Updates
July 26, 2021 – Canada Recovery Hiring Program (CRHP)
March 16, 2021 – CRA Administrative Updates
February 8, 2021 – Ontario Support for Small Businesses
January 19, 2021 – Canada Emergency Wage Subsidy (CEWS) Update
December 1, 2020 – Government of Canada Subsidy Updates
July 24, 2020 – The Canada Emergency Wage Subsidy has been extended until December, 2020
June 9, 2020 – COVID-19 Tax Measure Update
April 22, 2020 – COVID-19 Tax and Business Update
April 13, 2020 – The United States Economic Impact Payments
April 10, 2020 – COVID-19 Tax Update
April 2, 2020 – Update on COVID-19 Wage Subsidies for Employers
April 1, 2020 – Update on Tax and Business Measures Resulting from COVID-19
March 27, 2020 – Update on Tax and Business Measures Resulting from COVID-19
March 24, 2020 – US Treasury Announces Extended Deadlines and Payment Relief for US Tax Filers
March 19, 2020 – Tax and Business Measures Resulting from COVID-19

January 12, 2022

GOVERNMENT EXTENDS LOAN FORGIVENESS REPAYMENT DEADLINE FOR THE CANADA EMERGENCY BUSINESS ACCOUNT

The Department of Finance announced an extension to the repayment of the Canada Emergency Business Account (“CEBA”). Originally due by December 31, 2022, businesses will now have until December 31, 2023 to repay their loan and qualify for the partial loan forgiveness.

As a reminder, the maximum forgivable amount is $20,000, calculated as:

25% of the first loan of $40,000 ($10,000)
50% of the second loan of $20,000 ($10,000)

We refer you to the Department of Finance Canada news release for your reference.

January 11, 2022

ONTARIO COVID-19 SMALL BUSINESS RELIEF GRANT – $10,000

The Government of Ontario has announced the Ontario COVID-19 Small Business Relief Grant of $10,000 for small businesses that have been affected by the most recent public health measures.

To be eligible, a business must have been required to close due to the current public health order issued on January 5, 2022, and have less than 100 employees.

Eligible small businesses include:

Restaurants and bars;
Facilities for indoor sports and recreational fitness activities (including fitness centres and gyms);
Performing arts venues and cinemas, museums, galleries, aquariums, zoos, science centres, landmarks, historic sites, botanical gardens and similar attractions;
Meeting or event spaces;
Tour and guide services;
Conference centres and convention centres;
Driving instruction for individuals; and
Before- and after-school programs.

Eligible businesses that have previously applied for and received the Ontario Small Business Support Grant will be pre-approved for this grant. Newly established or newly eligible businesses will be able to register and apply through the on-line portal, which is expected to be available on January 18, 2022. Payments should be issued in February.

More information regarding this grant is expected to be released in the next few weeks.

CANADA EMERGENCY WAGE SUBSIDY AUDITS

Canada Revenue Agency (CRA) has begun issuing audit letters to businesses who have applied for and received a Canada Emergency Wage Subsidy (CEWS) payment in any of the Periods 1 through 22. Businesses selected for audit will receive an audit notification phone call from CRA, in addition to an audit letter requesting detailed information about specific claim periods that the business qualified for.

THE DEADLINE FOR SUBMISSION OF THE REQUESTED INFORMATION IS WITHIN 30 DAYS FROM THE DATE OF THE AUDIT LETTER. FAILURE TO PROVIDE THE INFORMATON WITHIN THE REQUIRED TIMELINE MAY JEOPARDIZE YOUR CEWS CLAIM.

If you receive an audit letter, and have any questions or require assistance with the compilation and submission of the information requested, please advise us immediately.

The various programs introduced by the government to assist with COVID 19 relief have been developing as new issues or questions arise on each of the programs. As a result, there may be changes that arise after you file for a claim under one of the programs. If you are not familiar with the programs, we recommend you reach out to one of the Taylor Leibow professionals so we can share what we have experienced and researched about the various programs to better assist you.

January 6, 2022

COVID SUBSIDY UPDATES – SUPPORT FOR BUSINESSES

The Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) programs, covering periods up to October 23, 2021, have ended. The Canada Recovery Hiring Program (CRHP) was scheduled to end on November 20, 2021, but has now been extended to May 7, 2022, and potentially July 2, 2022.

While there are no plans to extend or replace the CEWS or the CERS subsidies, Canada Revenue Agency (CRA) has announced the Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recover Program (HHRP) to provide both rent and wage support for qualifying businesses up to May 7, 2022, with a potential further extension to July 2, 2022.

The Tourism and Hospitality Recovery Program (THRP)

This program will support organizations in the tourism and hospitality industry that meet the following two conditions:

An average monthly revenue reduction of at least 40% over the first 13 qualifying periods (12 months) for the CEWS (March 15, 2020 – March 13, 2021); and
Have a current-month revenue reduction of at least 40% over the baseline revenue period.

The program will provide relief for both eligible wage and rent expenses incurred on a month-by-month basis, at the following rates:

CURRENT-MONTH REVENUE DECLINE	PERIODS 22 – 26 OCTOBER 24, 2021 – MARCH 12, 2022	PERIODS 27 – 28 MARCH 13 – MAY 7, 2022
75% and over	75%	37.5%
40 – 74%	Revenue decline (i.e. 60% revenue decline = 60% subsidy)	Revenue decline / 2 (i.e. 60% revenue decline / 2 = 30% subsidy)
0 – 39%	0%	0%

The Hardest-Hit Recovery Program (HHRP)

Businesses who do not qualify for the THRP program, may be eligible for the HHRP if they meet the following two conditions:

An average monthly revenue reduction of at least 50% over the first 13 qualifying periods (12 months) for the CEWS (March 15, 2020 – March 13, 2021); and
Have a current-month revenue reduction of at least 50% over the baseline revenue period

Similar to the THRP, the HHRP program covers the following portion of a business’s eligible wage and rent expense:

CURRENT-MONTH REVENUE DECLINE	PERIODS 22 – 26 OCTOBER 24, 2021 – MARCH 12, 2022	PERIODS 27 – 28 MARCH 13 – MAY 7, 2022
75% and over	50%	25%
40 – 74%	10% x (revenue decline – 50%) x 1.6 (i.e. 10% +(60% revenue decline – 50%) x 1.6 = 26% subsidy rate)	5% x (revenue decline – 50%) x 0.8 (i.e. 5% + (60% revenue decline – 50%) x 0.8 = 13% subsidy rate)
0 – 39%	0%	0%

Changes to the Eligible Rent Expense Limit

Previously, the CERS program limited rent expense claims to $75,000 per business location and $300,000 in total for all locations, including affiliated entities. Commencing October 24, 2021, the rent expense cap increased to $1 million in aggregate, with the per business location remaining consistent at $75,000.

Local Lockdown Support

All businesses, regardless of sector, that are subject to a public health restriction that requires a cessation of activities that account for at least 25% of their total revenue for a period of 7 days or more between October 24, 2021 and May 7, 2022, and experience a revenue decline of at 40% over their baseline reference period will continue to be eligible for the Lockdown Support of 25% of eligible rent expenses.

In addition, temporary measures have been implemented from December 19, 2021 to February 12, 2022 to allow businesses subject to either a lockdown, or a capacity-limiting restriction of 50% or more for a period of at least 7 days, that experience revenue reduction of least 25% over their baseline reference period to be eligible for Lockdown Support of between 25% to 75% on both eligible wages and rent expenses, based on revenue decline.

Small Business Air Quality Improvement Tax

This is a temporary refundable tax credit available to eligible entities that invest in the purchase, upgrade or retrofit of mechanical heating, ventilation or air condition (HVAC) systems, or purchase standalone HEPA air filtration units to improve indoor air qualify. The credit is taxable in the year claimed, and is equal to 25% of eligible expenditures to a maximum of $2,500 per location ($10,000 in eligible expenses) or $12,500 per affiliated businesses ($50,000 in eligible expenses). Eligible expenses must be incurred between September 1, 2021 and December 31, 2022. Expenses incurred for general repairs, financing costs, or amounts paid to non-arm’s length entities are not eligible.

Eligible entities include unincorporated sole proprietors, eligible members of a partnership, or Canadian-controlled private corporations (CCPC’s) with less than $15 million in taxable capital in the preceding tax year in which the expenses are incurred.

Ontario Business Costs Rebate Program (OBCRP)

Ontario businesses will be able to apply for the OBCRP mid-January 2022 to access funding of up to 50% of their property tax and energy costs incurred while under either lockdown or reduced capacity retroactive to December 19, 2021.

COVID SUBSIDY UPDATES – SUPPORT FOR INDIVIDUALS

The Canadian Government has also introduced additional support for individuals who continue to have their employment impacted by Covid-19, either due to lockdown, caregiver responsibilities or illness. Similar to the CERB and CRB, all amounts received will be reported on either a T4A or T4E, and will be included in the individual taxpayers’ income in the year received.

Canada Worker Lockdown Benefit (CWLB)

Employee’s whose work is interrupted as a direct result of a public health lockdown lasting 14 days or more will be able to access the CWLB, which provides a weekly net benefit of $270 ($300 less $30 income tax withheld) for each week of the government-imposed lock-down up until May 7, 2022.

In addition, employees’ will also qualify for the CWLB where their work is impacted by a capacity restriction order of 50% or more between December 19, 2021 to February 12, 2022.

An employee may access the CWLB or Employment Insurance, but not both.

Canada Recovery Caregiver Benefit (CRCB)

Employee and self-employed individuals who are unable to work because they must care for an eligible individual can receive a net amount of $450 ($500 less $50 income tax withheld) for each 1 week period, for up to 44 weeks between September 27, 2020 and May 7, 2022. Eligible individuals include their child under the age of 12 or another family member who needs supervised care, where the regular school or program or facility is closed or unavailable to them due to Covid-19, sickness, self-isolation, or if they are at serious risk due to Covid-19.

Applications can be submitted up to 60 days after the end of the 1-week period being applied for. Retroactive applications for Periods 61 to 63 (November 21 to December 11, 2021) will be accepted until February 16, 2022.

Canada Recovery Sickness Benefit (CRSB)

The CRSB is available to both employees and self-employed individuals unable to work if they are sick, in self-isolation due to Covid-19, or have an underlying health condition that puts them at greater risk of getting Covid-19. The subsidy provides a weekly net benefit of up to $450 ($500 less $50 tax withheld) for a maximum of 6 weeks between September 27, 2020 and May 7, 2022.

Applications must be submitted for each 1-week period within 60 days of the end of that period. Submissions for Periods 61 to 63 will also be accepted until February 16, 2022.

July 26, 2021

Canada Recovery Hiring Program (CRHP)

CRA has recently introduced the Canada Recovery Hiring Program (CRHP) to help employers rebuild their workforce as the economy recovers and businesses reopen.

The Canada Recovery Hiring Program (CRHP) is available to eligible employers, commencing June 6, (Period 17) through to November 20, 2021 (Period 22) who have experienced a revenue decline in a specific period. The program periods overlap with the Canada Emergency Wage Subsidy (CEWS) which is currently scheduled to end on September 25 (Period 20). During the period of overlap, employers can claim either the CRHP or the CEWS, but not both.

The CRHP payment is based on the incremental increase in eligible remuneration to active employees in the current period compared to wages paid during Period 14 – March 14 to April 10, 2021 (to a maximum of $1,129 per employee per week) multiplied by the subsidy rate.

	PERIOD	DATES	SUBSIDY RATE	REVENUE DECLINE REQUIRED
CEWS – OR – CRHP	17	June 6 – July 3, 2021	50%	More than 0%
	18	July 4 – July 31, 2021	50%	More than 10%
	19	August 1 – August 28, 2021	50%	More than 10%
	20	August 29 – September 25, 2021	40%	More than 10%
CRHP	21	September 26 – October 23, 2021	30%	More than 10%
CRHP	22	October 24 – November 20, 2021	20%	More than 10%

Non-arm’s length employees must have received eligible wages during the CEWS baseline pre-crisis period to be eligible. Wages paid to furloughed employees are not considered eligible remuneration for the CRHP, and no top-up amount is available.

Unlike CEWS, amounts received from the Employment and Social Development Canada’s (ESDC’s) work-sharing program are not deducted from the subsidy.

Revenue declines must be calculated using the same method used for CEWS from Period 4 and forward, being either the general or alternative method (revenues from the same month in the prior year, or the average of January and February, 2020 revenues, respectively).

The definition of an eligible employer is generally consistent with the CEWS program. Eligible employers include individuals, corporations, registered charities, non-profit organizations and partnerships that consist of eligible employers. Cooperative corporations are also included in the definition; however, unlike the CEWS, they must be eligible for the small business deduction.
Applications for Period 17 are now open, and can be submitted through CRA’s My Business Account, Represent a Client, or the Web Application Form. Employers who have applied for CEWS Period 17 without consideration of the CRHP are encouraged to calculate the CRHP subsidy amount, and amend their claim where the CRHP subsidy is higher.

The deadline for submission or amendment for each claim period is 180 days after the end of the claim period.

March 16, 2021

CRA Administrative Updates

Canada Revenue Agency (CRA) has recently announced the following administrative updates to the Canada Emergency Rent Subsidy (CERS) and the Canada Emergency Response Benefit (CERB) that may impact taxpayers.

CANADA EMERGENCY RENT SUBSIDY (CERS)

Interpretation – Eligible Expenses for Tenants

CRA has provided clarification on the eligibility of certain occupancy expenses paid by tenants, in addition to rent. According to a recently released interpretation, for an expense to be eligible for the purposes of CERS, the following criteria must be met:

The amounts must be payable under a triple net lease agreement;
The amounts must be payable to an arm’s length entity; and
The amounts must be specifically identified in the triple net lease agreement.

Lease agreements other than triple net lease agreements that only state an expense is payable by the tenant do not meet the eligibility terms of the program.

Administrative Changes

Administrative changes have been made to the Canada Emergency Rent Subsidy (CERS) to allow property owners with non-arm’s length tenants (i.e. related parties) to apply for the 25% lockdown support portion of the CERS, where the following conditions are met:

The tenant is not at arm’s length;
The tenant uses the qualifying property in the course of its regular activities;
The property is subject to a lockdown;
The tenant must shut their doors or significantly restrict their activities under a public health order for at least 1 week or longer; and
The property owner meets all other applicable conditions required to qualify for lockdown support.

Eligible expenses for the property owner include mortgage interest, property tax and building insurance. The expenses claimed must be reduced by any sub-lease amounts received from arm’s length entities.

This policy change is retroactive as of September 27, 2020 for the CERS Period 1 claim (CEWS Period 8). The deadlines for submission or amendments to applications are as follows:

CERS Period	Dates Covered	Filing/amendment deadline
Period 1	September 27 – October 24	April 22, 2021
Period 2	October 25 – November 21	May 20, 2021
Period 3	November 22 – December 19	June 17, 2021
Period 4	December 20 – January 16	July 15, 2021
Period 5	January 17 – February 13	August 12, 2021
Period 6	February 14 – March 13	September 9, 2021

CANADA EMERGENCY RESPONSE BENEFIT (CERB) – SELF-EMPLOYED INDIVIDUALS

The CERB program was introduced to provide financial support to both employed and self-employed Canadians directly affected by COVID-19. To qualify, a taxpayer was required to meet certain criteria, including having reported a minimum of $5,000 income on their 2019 income tax return. It was unclear as to whether this minimum referred to a self-employed individual’s gross revenues or revenues net of expenses.

CRA originally released an administrative position that this referred to revenues, net of expenses, resulting in many taxpayers potentially having to repay their CERB benefits. Citing their commitment to support Canadians during the COVID-19 crisis, CRA has changed their position to ensure that taxpayers with self-employed income of a minimum of $5,000 in gross revenues for the 2019 income tax year qualify for CERB benefits, as long as the taxpayer is compliance with all other eligibility requirements.

In addition, CRA has committed to returning any voluntary re-payment of the CERB to taxpayers who now qualify based on the updated administrative position. Taxpayers who did not take advantage of the CERB will not be allowed to apply retrospectively.

COVID-19 BENEFITS AND YOUR TAXES

Whether you are an individual or an unincorporated small business, you need to report any Covid-19 related benefits received or receivable during 2020 on your personal tax return. Personal income replacement benefits paid to individuals will be reported on either a T4A or T4E slip issued to you by CRA for the following benefits:

Canada Emergency Response Benefit (CERB)
Canada Emergency Student Benefit (CESB)
Canada Recovery Benefit (CRB)
Canada Recovery Caregiving Benefit (CRCB)
Canada Recovery Sickness Benefit (CRSB)
Provincial or territorial COVID-19 financial assistance payments

Individuals with unincorporated small businesses must also include any amounts received or receivable for 2020, including:

Canada Emergency Business Account (CEBA) forgivable portion
Canada Emergency Wage Subsidy (CEWS)
Canada Emergency Rent Subsidy (CERS)
Other Covid-related benefits received from federal or provincial sources

Please ensure you include this information with your personal tax information to avoid potential reassessment of your personal income tax return.

February 8, 2021

ONTARIO SUPPORT FOR SMALL BUSINESSES

The Government of Ontario is offering support programs that provide grants to eligible small businesses required to shut down or significantly restrict their services due to a public health measure.

ONTARIO SMALL BUSINESS SUPPORT GRANT (OSBSG)

The Ontario Small Business Support Grant to provide grants between $10,000 and $20,000 to eligible small businesses in Ontario that are required to close or significantly restrict their services due to the Provincewide shutdown effective December 26, 2020.

Eligible businesses include unincorporated proprietorships, partnerships, corporations, charities, non-profit organization, or other types of entities operating a business in Ontario.

Eligible businesses must meet all of the following requirements:

Have less than 100 employees, including full-time, part-time and seasonal workers
Experienced a minimum of 20% revenue decline in April, 2020 as compared to April, 2019
Have been operating on or before December 24, 2020
Have an active business number prior to applying
Been required to close or restrict services subject to the Provincewide Shutdown effective 12:01 a.m. on December 26

Ineligible businesses include those that:

Were already required to close prior to the introduction of modified Stage 2 measures on October 10, 2020
Essential businesses permitted to operate with capacity restrictions
Businesses that began operations subsequent to December 24, 2020

Affiliated entities must meet both the employee and revenue decline test on a combined basis to qualify, and must share in the total OSBSG grant.

Applications can be submitted online at https://www.app.grants.gov.on.ca/msrf/#/. The deadline for filing is March 31, 2021.

PROPERTY TAX AND ENERGY COST REBATES

The Property Tax and Energy Cost Rebates provides rebates equal to a small businesses property taxes and energy costs incurred during a period of restriction or lockdown.

The eligibility criteria for these grants are consistent with the OSBSG. In addition, businesses who were under modified Stage 2 restrictions are also eligible.

Applications can be submitted online at https://www.app.grants.gov.on.ca/msrf/#/. There is currently no stated deadline for application.

COVID-19 ENERGY ASSISTANCE PROGRAM – SMALL BUSINESS (CEAP-SB)

Businesses who are struggling to pay their energy bills as a result of COVID-19 may also qualify for an additional amount of up to $1,500 through their utility provider. More information, and applications for both Electricity and Natural Gas services can be found at: https://www.oeb.ca/rates-and-your-bill/covid-19-energy-assistance-programs/covid-19-energy-assistance-program-small.

ONTARIO’S MAIN STREET RELIEF GRANT: PPE SUPPORT

Small businesses with between 2 and 9 employees in the following sectors can apply for a one-time grant of up to $1,000 to assist with the costs of Personal Protective Equipment (PPE) at their business:

Retail
Accommodation and food services
Repairs and maintenance
Personal and laundry services
Gyms and yoga studios

Businesses will be required to submit receipts along with their application at: https://www.ontario.ca/page/businesses-get-help-covid-19-costs#section-1

REMINDER

If you have applied for either or both of the TWS or CEWS programs for any of Periods 1 to 4, you MUST complete and submit a PD27 for the period of March 18 to June 19, and submit to CRA no later than the earlier of the date you submit your T4’s, and March 1, 2021.

If you use a payroll service to prepare your payroll and T4’s we recommend you contact them to confirm if they will be preparing the PD27 and remitting on your behalf. Some major payroll providers have indicated that they are not offering this service to their clients.

If you require assistance with filing your PD27, please contact your Taylor Leibow business partner for assistance.

The various programs introduced by the government to assist with COVID-19 relief have been developing as new issues or questions arise on each of the programs. As a result, there may be changes that arise after you file for a claim under one of the programs. If you are not familiar with the programs, we recommend you reach out to one of the Taylor Leibow professionals so we can share what we have experienced and researched about the various programs to better assist you.

Canada Emergency Wage Subsidy (CEWS) Update

January 19, 2021

CRA has announced a few updates for the Canada Emergency Wage Subsidy for Periods 11 through 13. Changes include:

An increase in the maximum top-up subsidy rate from 25% to 35%
An increase in the maximum weekly subsidy for furloughed employees from $573 to $595
An adjustment to the revenue reference period for Period 11

In addition, they have established the base CEWS rates for periods 11 to 13. The qualifying periods, base rates and related reference periods are as follows:

PERIOD	Qualifying Period	Revenue Decline Reference Period General Approach	Revenue Decline Reference Period Alternative Approach	Base CEWS Rate
Period 11	December 20, 2020 to January 16, 2021	December 2020 over December 2019 – or – November 2020 over November 2019	December 2020 – or -November 2020 over average of January and February 2020	Revenue drop of 50% or more: 40% Revenue drop of less than 50%: 80% of revenue drop
Period 12	January 17 to February 13, 2021	January 2021 over January 2020 – or – December 2020 over December 2019	January 2021 – or -December 2020 over average of January and February 2020	Revenue drop of 50% or more: 40% Revenue drop of less than 50%: 80% of revenue drop
Period 13	February 14 to March 13, 2021	February 2021 over February 2020 – or – January 2021 over January 2020	February 2021- or – January 2021 over average of January and February 2020	Revenue drop of 50% or more: 40% Revenue drop of less than 50%: 80% of revenue drop

Applicants are reminded of the requirement to calculate qualifying revenues and reference periods on a consistent basis for Periods 1 through 4, and Periods 5 onward.

SUBSIDY FILING DEADLINE REMINDER

The filing deadline for both the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) is the later of January 31, 2021 and 180 days after the end of each period. Claims up to the end of Period 5 (ended August 1, 2020) must be filed no later than January 31, 2021. In addition, any amendments to these periods must be submitted before the deadline.

T4 REPORTING REQUIREMENTS UPDATE

To assist CRA with validation of payments made to individuals under COVID-19 related subsidies and benefits, employers will have to comply with additional reporting requirements when completing their 2020 T4’s.

In addition to reporting an employee’s total employment income in Box 14 (Code 71), employers must also report amounts paid to employees during the following 4 periods:

	CODE	PERIOD COVERED
	Code 57	March 15 to May 9
	Code 58	May 10 to July 4
	Code 59	July 5 to August 29
	Code 60	August 30 to September 26

Amounts are to be reported based on the date paid by the employer, not the date earned by the employee.

Reminder – if you have applied for either or both of the TWS or CEWS programs for any of Periods 1 to 4, you MUST complete and submit a PD27 for the period of March 18 to June 19, and submit to CRA no later than the earlier of the date you submit your T4’s, and March 1, 2021.

EMPLOYER-PROVIDED BENEITS AND ALLOWANCES – COVID-19

CRA has recognized that some employees were required to purchase additional equipment or furniture to perform their employment duties at home. While these expenses cannot be deducted for tax purposes, CRA will allow an employer to reimburse each employee for expenses incurred up to a maximum of $500 total as a non-taxable amount. If an amount is reimbursed over $500 either the employer must prove the expense was for the employer’s benefit, or the amount must be included in the employee’s income as a taxable benefit. Employers are required to obtain all receipts from their employees and retain for their records. Any amount paid to an employee that is not supported by a receipt will be a taxable benefit to the employee regardless of the amount.

EMPLOYEE OFFICE USE OF HOME – COVID-19

The COVID-19 outbreak has resulted in many Canadians being required to set up work-spaces in their homes. Previously, an employee could not claim a deduction for home office expense unless the home office was principally and exclusively used for the purposes of earning income. CRA has introduced amendments that will allow employees that were required to work from home for more than 50% of the time over a period of at least four consecutive weeks in 2020 due to COVID-19 to claim a deduction for home office use on their 2020 personal tax return.

Employees can claim the deduction using either the simplified method, or the detailed method by completing and submitting a T777S – Statement of Employment Expenses for Working at Home Due to COVID-19 with their 2020 TAX return.

Employees using the detailed method must obtain a signed form T2200S Declaration of Conditions of Employment for Working at Home due to COVID-19 from their employer. CRA will accept a signed T2200 Declarations of Conditions of Employment in place of the T2200S where one has already been acquired.

The simplified method provides a deduction of $2 per day for each day the employee worked at home to a maximum of $400 per taxpayer. This method does not require the employee to accumulate or support the home office expenses. Where more than one taxpayer worked from the residence, each can claim the maximum amount.

The detailed method provides a deduction based on the actual eligible expenses incurred during the time the employee was required to work from home, pro-rated by the percentage of the space used by that employee for employment purposes. Where a space is not a designated room used exclusively for employment purposes, the amount must also be prorated by the number of hours per week the space is used for employment purposes.

Eligible and non-eligible expenses include the following:

	ELIGIBLE EXPENSES	NON-ELIGIBLE EXPENSES
	Rent	Capital cost allowance
	Utilities	Mortgage principal or interest
	Minor home maintenance	Capital expenses
	Office supplies	Landline telephone base rate
	Home internet access fees	Cell phone connection or license fees
	Employment use of cell phone	Office furniture and equipment
	Property taxes*	Computer equipment, accessories
	Home insurance*
	Office equipment lease*

*these amounts are only deductible by employees who earn commission income

CANADA RECOVERY BENEFIT (CRB)

CRA has introduced the Canada Recovery Benefit (CRB) to replace the Canada Emergency Response Benefit (CERB). The benefit provides a bi-weekly amount of $900 ($1,000 less $100 withholding tax) for up to 13 periods (26 weeks) between September 27, 2020 and September 25, 2021 to eligible individual taxpayers. Taxpayers must apply for each 2-week period, commencing the first Monday after the period ends. To be eligible, a taxpayer must:

Not be employed or self-employed for reasons related to COVID-19; or
Have experienced a minimum 50% reduction in average weekly income compared to the previous year due to COVID-19; and
Not have applied for or received other government benefits during the period.

Taxpayers who report an amount of $38,000 or more on line 236000 of their 2020 or 2021 income tax return will be required to repay the benefit for that year at a rate of $0.50 per $1.00.

December 1, 2020

GOVERNMENT OF CANADA SUBSIDY UPDATES

The Government of Canada continues to update existing programs introduced to assist Canadian businesses and organizations with the financial challenges being experienced as a result of the COVID-19 pandemic. These include the introduction of the Canada Emergency Rent Subsidy (CERS), to replace the Canada Emergency Commercial Rent Assistance (CECRA) program, as well as announced extensions and enhancements to the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Business Account (CEBA).

CANADA EMERGENCY RENT SUBSIDY (CERS)

The new Canada Emergency Rent Subsidy (CERS) provides financial assistance to commercial renters and property owners who have experienced a decline in revenues for the period commencing September 27, 2020 to June 2021. Program details up to December 19, 2020 are currently available, information regarding the periods after December 19, 2020 is expected to be released soon.

Eligible Entities

Entities eligible for the CERS include individuals, taxable corporations, partnerships, trusts, non-profit organizations, and registered charities with either an active business number as of September 27, 2020 or a payroll account as of March 15, 2020. Newly acquired entities may also qualify under special deeming rules.

Eligible Expenses

Eligible expenses include amounts paid or payable to an arms-length party between September 27 and December 19, 2020 (Periods 8 to 10) for property located in Canada that is used in the ordinary course of business, including:

Commercial Rent
Property Taxes
Property insurance
Interest on commercial mortgages (subject to limitations), less any sublease revenue

To be eligible, expenses must be paid or payable under a written agreement dated prior to October 9, 2020, and are limited to $75,000 per qualifying period per location, and to $300,000 in total for affiliated groups.

Subsidy Amount

The program provides a subsidy of up to 65% of eligible expenses incurred in Periods 8 to 10 based on revenue decline over the reference period. An additional amount of 25% is available if your business was subject to significant restrictions or a lockdown under a public health order for a minimum of 1 week at any time during that period. This amount is prorated based on the number of days in the period that your business was in lockdown.

REVENUE DECLINE	BASE SUBSIDY RATE	ADDITIONAL LOCKDOWN SUPPORT
70% and over	65%	25% e.g., 25% x (7 days lockdown/28 days) = 6.25%
50% to 69%	40% + (revenue drop – 50%) x 1.25 e.g., 40% + (60% revenue drop – 50%) x 1.25 = 52.5% subsidy rate	25% e.g., 25% x (7 days lockdown/28 days) = 6.25%
1% to 49%	Revenue drop x 80% e.g., 25% revenue drop x 80% = 20% subsidy rate	25% e.g., 25% x (7 days lockdown/28 days) = 6.25%

The following table summarizes the dates included in Periods 8 to 10, and the revenue decline reference periods used for calculating both the CERS and CEWS benefit.

PERIOD	Qualifying Period	Revenue Decline Reference Period General Approach	Revenue Decline Reference Period Alternative Approach
Period 8	September 27 to October 24, 2020	October 2020 over October 2019 – or – September 2020 over September 2019	October 2020 – or – September 2020 over average of January and February 2020
Period 9	October 25 to November 21, 2020	November 2020 over November 2019 – or – October 2020 over October 2019	November 2020 – or – October 2020 over average of January and February 2020
Period 10	November 22 to December 19, 2020	December 2020 over December 2019 – or – November 2020 over November 2019	December 2020 – or – November 2020 over average of January and February 2020

Applications for the CERS can be submitted any time after November 23, 2020 online through your CRA My Business Account. Applications must be submitted no later than 180 days from the end of the qualifying period.

CANADA EMERGENCY WAGE SUBSIDY (CEWS)

The federal government has confirmed its intention to extend the Canada Emergency Wage Subsidy (CEWS) through to June 2021. In addition, they have updated the benefit rate and maximum benefit to be consistent from September 27 to December 19 (Periods 8 to 10).

PERIODS 8-10	Revenue drop less than 50%	Revenue drop 50% or more
Benefit rate	0.8 x % revenue drop e.g., 0.8 x 20% revenue drop = 16% base CEWS rate	40% plus a top up of 1.25 x (revenue decline-50%) up to maximum of 25%
Maximum Benefit per employee	40% of eligible wages (to $1,129) or $452/week	65% of eligible wages (to $1,129) or $734/week

Applications for the CEWS can be submitted online through your CRA My Business Account.

Applications for both the CERS and CEWS programs must be submitted by the later of January 31, 2021 and 180 days after the end of the qualifying periods.

TEMPORARY WAGE SUBSIDY (TWS)

Eligible employers who did not qualify for the CEWS in Periods 1 to 4, and have not applied for the Temporary Wage Subsidy (TWS) for wages paid from March 18 to June 19, 2020 can still do so. While there is no specific filing deadline, it is recommended that applications be submitted prior to December 31, 2020. To apply, complete the PD27 10% Temporary Wage Subsidy Self-identification Form for Employers (PD27), available on the CRA website. The subsidy amount can either be deducted from the income tax portion of future source deduction remittances, paid out to you by CRA, or credited to your CRA payroll account. Simply indicate your preference in the “Comments” section of the PD27 when completing the form.

It is important to note that if you have applied for either or both of the TWS or CEWS programs for any of Periods 1 to 4, you MUST complete and submit a PD27 for the period of March 18 to June 19, and submit to CRA no later than the earlier of the date you submit your T4’s, and March 1, 2021.

CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

The federal government has announced it will increase the maximum amount of funding available through the Canada Emergency Business Account (CEBA) loan from $40,000 to $60,000, increasing the maximum forgivable amount to $20,000. Information on how to access this additional amount is expected to be announced soon.

Applications for the original $40,000 CEBA must be filed on or before December 31, 2020. Businesses should contact their financial institutions for more information and for details of how to apply.

Resources

Canada Emergency Rent Subsidy (CERS): https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-who-apply.html

Canada Emergency Wage Subsidy (CEWS): https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

Temporary Wage Subsidy (TWS): https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy.html

Canada Emergency Business Account: https://ceba-cuec.ca/

PD27 application: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/pd27.html

July 24, 2020

The Canada Emergency Wage Subsidy has been extended until December, 2020

On Friday July 17, 2020 the federal government announced a number of changes to the Canada Emergency Wage Subsidy (“CEWS”). These changes include the following:

extending the CEWS to December 2020,
adjustments to the revenue decline measurements,
changes to the CEWS rates going forward,
the introduction of a top up for employers facing large reductions in revenue,
changes to eligible employees,
pre-crisis remuneration, and
the application deadline.

CEWS Extension

The CEWS has been extended until December 19, 2020. However, the Federal Government has only provided details of the subsidy for the period up to November 21, 2020. The CEWS claims are divided into claim periods. These periods are as follows:

	Claim period
Period 1	March 15 – April 11
Period 2	April 12 – May 9
Period 3	May 10 – June 6
Period 4	June 7- July 4
Period 5	July 5 – August 1
Period 6	August 2 – August 29
Period 7	August 30 – September 26
Period 8	September 27 – October 24
Period 9	September 27 – October 24
Period 10	November 22 – December 19

Adjustment to Revenue Decline Measurements

Prior to these changes, employers could determine their eligibility by comparing the change in monthly revenue to either the comparable month in 2019 (known as the general approach) or electing to compare the revenue decline to the average of January and February 2020 (known as the alternative approach). Once the comparable period was selected, it had to be followed throughout claim periods 1 through 4.

Now, for period 5 and all subsequent periods, an eligible employer would be able to use the greater of its percentage revenue decline in the current period or that in the previous period for the purpose of determining its qualification for the base CEWS and its base CEWS rate in the current period.

Employers that have elected to use the alternative approach for the first 4 periods would be able to either maintain that election for Period 5 and onward or revert to the general approach. Similarly, employers that have used the general approach for the first 4 periods would be able to either continue with the general approach or elect to use the alternative approach for Period 5 and onward. Whichever approach they choose would apply for Period 5 through period 9 and would apply to the calculation of the base CEWS and the top-up CEWS (discussed later). This would provide flexibility for employers to adjust their approach in light of new circumstances they may be experiencing as the CEWS is extended.

The following chart compares the reference periods for the revenue declines for purposes of the base CEWS:

	Claim period	General approach	Alternative approach
Period 5	July 5 to August 1, 2020	July 2020 over July 2019 or June 2020 over June 2019	July 2020 or June 2020 over average of January and February 2020
Period 6	August 2 to August 29, 2020	August 2020 over August 2019 or July 2020 over July 2019	August 2020 or July 2020 over average of January and February 2020
Period 7	August 30 to September 26, 2020	September 2020 over September 2019 or August 2020 over August 2019	September 2020 or August 2020 over average of January and February 2020
Period 8	September 27 to October 24, 2020	October 2020 over October 2019 or September 2020 over September 2019	October 2020 or September 2020 over average of January and February 2020
Period 9	October 25 to November 21, 2020	November 2020 over November 2019 or October 2020 over October 2019	November 2020 or October 2020 over average of January and February 2020

Changes to the CEWS Rates Going Forward

Effective July 5, 2020 (period 5 and forward) employers will be eligible for the CEWS for active employees even though their revenue decline may be less than 30% as is required in periods 2 through 4. The base CEWS would be a specified rate, applied to the amount of remuneration paid to the employee for the eligibility period, on remuneration of up to $1,129 per week. The base CEWS rate will be equal to 1.2 times the revenue decline for the period. The rate of the base CEWS would now vary depending on the level of revenue decline. The specified rate would be determined based on the change in an eligible employer’s monthly revenues.

Timing	Period 5*: July 5 – August 1	Period 6*: August 2 – August 29	Period 7: August 30 – September 26	Period 8: September 27 – October 24	Period 9: October 25 – November 21
% Revenue decline	Subsidy Rate
50% and over	60%	60%	50%	40%	20%
0% to 49%	1.2 x revenue drop (e.g., 1.2 x 20% revenue drop = 24% base CEWS rate)	1.2 x revenue drop (e.g., 1.2 x 20% revenue drop = 24% base CEWS rate)	1.0 x revenue drop (e.g., 1.0 x 20% revenue drop = 20% base CEWS rate)	0.8 x revenue drop (e.g., 0.8 x 20% revenue drop = 16% base CEWS rate)	0.4 x revenue drop (e.g., 0.4 x 20% revenue drop = 8% base CEWS rate)
Maximum weekly benefit per employee	Up to $677	Up to $677	Up to $565	Up to $452	Up to $226
* In Periods 5 and 6, employers who would have been better off in the CEWS design in Periods 1 to 4 would be eligible for a 75% wage subsidy if they have a revenue decline of 30% or more.

They have also introduced a safe harbor rule for periods 5 and 6. This means that in Periods 5 and 6, an eligible employer with a revenue decline of 30 per cent or more in the relevant reference period would receive a CEWS rate of at least 75 per cent or potentially an even higher CEWS rate using the new rules outlined above for the most adversely affected employers (up to 85 per cent).

CEWS Top-Up

A new top-up of the CEWS was introduced for employers facing large revenue declines. Employers that have experienced a 3-month average revenue drop of more than 50 per cent would receive a top-up CEWS rate equal to 1.25 times the average revenue drop that exceeds 50 per cent, up to a maximum top-up CEWS rate of 25 per cent, which is attained at a 70‑per‑cent revenue decline. As with the base CEWS rate, the top-up CEWS rate would apply to remuneration of up to $1,129 per week. The top-up reduces from the 25% rate depending to the amount of the revenue decline. The top-up rates are summarized as follows:

3-month average revenue drop	Top-up CEWS rate	Top-up calculation = 1.25 x (3 month revenue drop – 50%)
70% and over	25%	1.25 x (70%-50%) = 25%
65%	18.75%	1.25 x (65%-50%) = 18.75%
60%	12.5%	1.25 x (60%-50%) = 12.5%
55%	6.25%	1.25 x (55%-50%) = 6.25%
50% and under	0.0%	1.25 x (50%-50%) = 0.0%

In determining the revenue decline, the following table summarizes the comparative period:

	Claim period	General approach	Alternative approach
Period 5	July 5 to August 1, 2020	April to June 2020 over April to June 2019	April to June 2020 average over January and February 2020 average*
Period 6	August 2 to August 29, 2020	May to July 2020 over May to July 2019	May to July 2020 average over January and February 2020 average*
Period 7	August 30 to September 26, 2020	June to August 2020 over June to August 2019	June to August 2020 average over January and February 2020 average*
Period 8	September 27 to October 24, 2020	July to September 2020 over July to September 2019	July to September 2020 average over January and February 2020 average*
Period 9	October 25 to November 21, 2020	August to October 2020 over August to October 2019	August to October 2020 average over January and February 2020 average*
* The calculation would equal the average monthly revenue over the 3 months of the reference period divided by the average revenue for the months of January and February 2020.

Changes to Eligible Employees

An eligible employee is an individual who is employed in Canada. Effective July 5, 2020, the eligibility criteria would no longer exclude employees that are without remuneration in respect of 14 or more consecutive days in an eligibility period.

Pre Crisis Remuneration

In order to assist with seasonal businesses, the pre-crisis remuneration periods have changed. A modified special rule would apply to active employees that do not deal at arm’s length with the employer.

For Period 4, the pre-crisis remuneration of an employee would be based on the average weekly remuneration paid to the employee from January 1 to March 15, 2020; from March 1, 2019 to May 31, 2019; or from March 1, 2019 to June 30, 2019.

For Period 5 and subsequent periods, the pre-crisis remuneration of an employee would be based on the average weekly remuneration paid to the employee from January 1 to March 15, 2020 or from July 1, 2019 to December 31, 2019.

In all cases, the calculation of average weekly remuneration would exclude any period of 7 or more consecutive days without remuneration. Employers can choose which period to use on an employee-by-employee basis.

Application Deadline

The application deadline for CEWS claims has been extended from September 30, 2020 until January 31, 2021.

The above rule changes have made the calculation of the CEWS subsidy and the qualification process quite complex. If you are not familiar with the programs, we recommend you reach out to your Taylor Leibow professional to assist you with the CEWS calculation.

June 9, 2020

COVID-19 Tax and Business Update

75% Canadian Emergency Wage Subsidy (“CEWS”)

There have been a number of changes and clarification to the CEWS since our last update on April 22, 2020. The following is a summary of some of the recent changes.

The Federal government has extended the CEWS until August 29, 2020. The original program was to cover the period from March 15 to June 6, 2020. This announcement extends the program an additional 12 weeks. To be eligible, the employer still must meet the 30% revenue decline criteria as communicated in the original program announcement.
The government has expanded the CEWS program to include certain partnerships. Previously, if a partnership included one partner that was not eligible for the program, the entire partnership was excluded from the program. This change is retroactive to March 15, 2020.
Certain other organizations such as registered journalism organizations, amateur athletic organizations, etc. that were previously not eligible for the CEWS are now eligible.
The government is proposing changes for corporations that were amalgamated in the past year. The proposals will provide guidance to calculating the decline in revenue for purposes of determining the eligibility for the CEWS.
There have been changes for calculating baseline remuneration for seasonal employees.

Canada Emergency Commercial Rent Assistance (“CECRA”)

To qualify for the CECRA the following criteria must be met by the commercial property owner:

You own a commercial property that is occupied by one or more small business tenants.
You enter into a legally binding rent reduction agreement with the tenant for April, May and June 2020 reducing the tenants rent by at least 75%.
The agreement contains a moratorium on eviction during the period.
An eligible small business tenant is one that pays no more than $50,000 per month of rent, generates no more than $20 Million per year in gross revenue and has experienced a 70% decline in pre Covid revenues.

The CECRA would then cover 50% of the original rent, the tenant would pay 25% of the original rent, and the landlord would forgive 25% of the original rent.

This program is administered thorough the Canada Mortgage and Housing Corporation. The portal for applications opened on May 25, 2020.

The end date for applications is August 31, 2020.

It is the property owner that must apply for the CECRA and not the tenant.

If rent has been collected greater than 25% in the period of April through June, the CECRA must be used to refund or credit the tenant for and rents in excess of the 25% in order to qualify.

If a commercial tenant is not dealing at arm’s length with the landlord, they must have been a valid and enforceable lease in place before April 1, 2020 with arm’s length terms. The other eligibility requirements must also have been met to qualify for the CECRA.

Canada Emergency Student Benefit (“CESB”)

The application portal for the CESB is now open. The CESB provides financial support of $1,250 per month from May to August for post-secondary students that are unable to work due to Covid-19. The benefit is increased to $2,000 per month for those with a disability or dependents.

April 22, 2020

COVID-19 Tax and Business Update

It has been just over a month since the initial announcements of tax and business measures were made. Since then, Bill C-13 and Bill C-14 have provided the legislative background to many of the incentives. However, there are still many questions and interpretations being released each day. Some of the items we have come across in the last few weeks are summarized as follows:

Canada Emergency Business Account (CEBA)

The CEBA is a program whereby a loan of $40,000 can be made to a small business. The prior requirements noted that in order to qualify, a business had to have payroll in 2019 between $50,000 and $1 million. It has recently been announced that the requirements have changed, so the business will now qualify if the 2019 payroll was between $20,000 and $1.5 million.

If the loan is repaid before December 31, 2022, 25% of the loan will be forgiven.

This program is available now and interested businesses should work with their current financial institutions to apply.

Canada Emergency Response Benefit (CERB)

The following items have been clarified in the application for the $2,000 CERB:

In order to qualify the applicant must have had $5,000 of employment or self-employment income in the previous 12 months. The draft legislation indicates the $5,000 is total income (not net income).
Non-eligible dividends qualify as income for the $5,000 amount.
The following is a link to a Q&A for the CERB and it indicates that in applying for the CERB, the applicant cannot have earned more than $1,000 of employment or self-employment income for 14 days in the past four week period. Also, when submitting new claims (for subsequent periods) the applicant cannot have had more than $1,000 of income for the entire new benefit period.

75% Canadian Emergency Wage Subsidy (CEWS)

The government has announced the application for the CEWS will open on April 27th. They have also provided an on line calculator for calculating an employer’s eligibility and the amount of the subsidy.

Follow the attached link to view the online calculator:

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html

Other items to keep in mind concerning the CEWS are as follows:

If an employer qualifies for the subsidy in March based on the 15% decline in revenue, it will automatically qualify in April, but will then have to requalify in May based on the 30% revenue decline.

A company is eligible for the subsidy on its employees except if the employee did not receive any pay for a period of 14 or more consecutive days during a claim period. The claim periods are summarized as follows:
- March 15 to April 11,
- April 12 to May 9,
- May 10 to June 6.
Employers need to be careful in planning the lay off or recall of employees.

If a company wants to calculate the revenue decline on a consolidated basis, it must consolidate all “Affiliated” entities not “Associated” entities. There is a difference. Affiliated are all entities controlled by the same individual and/or their spouse. Also, if the company is calculating the revenue on an affiliated basis, it has to include ALL affiliated companies (other than foreign entities). The company cannot pick and choose which entities to include in the consolidation.

Companies can elect to calculate their revenue on a cash basis. This is an election, so the company does not have to normally calculate income on a cash basis.

Canada Emergency Commercial Rent Assistance (CECRA)

The Federal government, in partnership with the provincial governments, plan to introduce the CECRA program for small businesses. This program will seek to provide loans and/or forgivable loans to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June. Details of this program have yet to be published.

April 13, 2020

The United States Economic Impact Payments

The IRS will be issuing economic impact payments to US citizens and US residents in the next three weeks. It will be distributed automatically, with no action required for most people.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and joint filers with income exceeding $198,000 with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child. A child must have a Social Security Number to qualify.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I receive Social Security and am not typically required to file a tax return. Can I still receive my payment?

Yes. IRS recently announced that Social Security recipients who are not required to file annual income tax returns will receive their economic impact payment in the same manner that they receive their Social Security payments. No additional filing is required.

Where can I get more information?

The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.

Please contact us if you have any questions.

Adrienne Barclay, CPA, CA
CPA (New Hampshire)
Tax Partner
Main line: (905) 523-0000 ext 254
Main fax: (905) 523-4681

April 10, 2020

COVID-19 Tax Update

75% Canadian Emergency Wage Subsidy

The government announced further changes to the Canada Emergency Wage Subsidy (CEWS) on April 8th. The CEWS will apply at a rate of 75% on the first $58,700 of employment wages, which would represent a maximum benefit of $847 per week per employee. The program runs from March 15 through June 6, 2020. Employers of all sizes and across all sectors will be eligible, with certain exceptions for public sector companies.

See our article from April 2nd which provides details of the CEWS benefit.

https://www.taylorleibow.com/taylor-leibow-covid-19-tax-update/#2020-04-02

The recent proposed changes to the CEWS are noted below:

April 8th Changes

Definition of Pre-Crisis Remuneration

In determining the CEWS amount, the government is comparing the Pre Crisis remuneration to the remuneration paid during the Covid period. The government defined pre-Crisis remuneration to be the average weekly remuneration paid between January 1 and March 15, 2020 inclusive, but excluding any 7 day period in respect of which the employee did not receive remuneration.

Refund of Payroll Contributions

The Government is proposing that employers eligible for the CEWS be entitled to receive a 100-per-cent refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund would apply to the entire amount of employer-paid contributions in respect of remuneration paid to furloughed employees in a period where the employer is eligible for the CEWS.

Alternatives to Revenue Measurement

For March, the Government proposes to make the CEWS more accessible than originally announced by reducing the 30-per-cent benchmark to 15 per cent, in recognition of the fact that many businesses did not begin to be affected by the crisis until partway through the month.

To measure their revenue loss, it is proposed that all employers have the flexibility to compare their revenue of March, April and May 2020 to that of the same month of 2019, or to an average of their revenue earned in January and February 2020. Once a method is chosen, the employer must use it throughout the program. The options can be illustrated by the following chart:

	Claim Period	Required Reduction in Revenue	Reference period for eligibility
Period 1	March 15 to April 11	15%	March 2020 over: March 2019, or Average of January and February 2020.
Period 2	April 12 to May 9	30%	April 2020 over: April 2019, or Average of January and February 2020.
Period 3	May 10 to June 6	30%	May 2020 over: May 2019, or Average of January and February 2020.

It is proposed that employers be allowed to measure revenues either on the basis of accrual accounting (as they are earned) or cash accounting (as they are received).

Registered charities and non-profit organizations would also be able to benefit from the additional flexibilities being provided to employers with respect to the revenue loss calculation. In addition, to recognize that different types of organizations are experiencing different types of funding pressures, it is proposed that charities and non-profit organizations be allowed to choose to include or exclude government funding in their revenues for the purpose of applying the revenue reduction test.

How to Apply for CEWS?

Eligible employers would be able to apply for the CEWS through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.

Interaction Between The 10% Temporary Wage Subsidy Program (“TWSP”)and the 75% Canada Emergency Wage Subsidy Program (“CEWS”)

To the extent that you claim a subsidy under the 10% TWSP, it will reduce any benefit under the 75% CEWS. However, the 10% TWSP will allow you to reduce your payroll remittances immediately, whereas the 75% CEWS may take several weeks before you will receive a cheque from the government.

Other April 8, 2020 Announcements

Canada Summer Jobs Program

The Federal Government is making temporary changes to the Canada Summer Jobs program to allow employers to:

receive an increased wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee;
extend the end date for employment to February 28, 2021;

Canada Emergency Business Account Loans

To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

This program is now available and interested businesses should work with their current financial institutions to apply.

April 2, 2020

Update on COVID-19 Wage Subsidies for Employers

Yesterday, the Federal Government released the details of the Canada Emergency Wage Subsidy after announcing it on March 27th.

There will now be two wage subsidy programs. The first is the 10% Temporary Wage Subsidy Program which was introduced on March 18, 2020 and the second is the 75% Canada Emergency Wage Subsidy Program which was introduced March 27th but details were provided yesterday.

For employers that are eligible for both the 75% Canada Emergency Wage Subsidy and the 10% Temporary Wage Subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would reduce the amount available to be claimed under the 75% Canada Emergency Wage Subsidy in that same period.

The details of each program are as follows:

The 75% Canada Emergency Wage Subsidy

Summary

The Canada Emergency Wage Subsidy (“CEWS”) will provide a 75% wage subsidy to eligible employers for up to 12 weeks retroactive to March 15, 2020. The CEWS will generally provide a subsidy to employers equal to 75% of the employees’ remuneration to a maximum of $847 per week per employee. The subsidy is only available to employers that have had a decline in revenue of 30% (as defined below) due to Covid 19. It will apply to wages paid from March 15, 2020 to June 6, 2020.

Eligible Employers

Eligible employers would include individuals, taxable corporations, and partnerships as well as non profit organizations and registered charities.

Public bodies would not be eligible for this subsidy. Public bodies include municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.

This subsidy would be available to eligible employers that see a drop of at least 30 per cent of their revenue (see Eligible Wage Periods below). In applying for the subsidy, employers would be required to attest to the decline in revenue.

An employer’s revenue for this purpose would be its revenue from its business carried on in Canada earned from arm’s-length sources. Revenue would be calculated using the employer’s normal accounting method, and would exclude revenues from extraordinary items and amounts on account of capital.

For non-profits and charities, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their specific circumstances.

How is the Subsidy Calculated?

The subsidy amount for a given employee on eligible remuneration paid between March 15 and June 6, 2020 would be the greater of:

75 per cent of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
the amount of remuneration paid, up to a maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration, whichever is less.

Employers will also be eligible for a subsidy of up to 75 per cent of salaries and wages paid to new employees.

There would be no overall limit on the subsidy amount that an eligible employer may claim.

Eligible remuneration

Eligible remuneration includes salary, wages, and other remuneration. These are amounts for which employers would generally be required to withhold or deduct amounts to remit to the Receiver General on account of the employee’s income tax obligation. However, it does not include severance pay, or items such as stock option benefits or the personal use of a corporate vehicle or dividends paid to a shareholder.

Any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the 75% Canada Emergency Wage Subsidy in that same period.

A special rule will apply to employees that do not deal at arm’s length with the employer. The subsidy amount for such employees will be limited to the lower of the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of the lower of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration.

How Does Revenue Decline match up with the Wages Paid?

In establishing a link between the revenue decline and the wage subsidy, following guide should be followed. There are three Eligible wage periods in the calculation of a claim.

Period 1:For wages paid from March 15 to April 11, the employer will look at year over year revenue declines for the month of March 2019 compared to March 2020.

Period 2: For wages paid from April 12 to May 9, the employer will look at year over year revenue declines for the month of April 2019 compared to April 2020.

Period 3: For wages paid from May 10 to June 6, the employer will look at year over year revenue declines for the month of May 2019 compared to May 2020.

How to Apply?

Eligible employers would be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly. The government has indicated it expects to issue subsidy payments in approximately 6 weeks.

Any subsidy received will be taxable income to the employer as income in the year received.

Penalties

In order to maintain the integrity of the program and to ensure that it helps Canadians keep their jobs, the employer would be required to repay amounts paid under the Canada Emergency Wage Subsidy if they do not meet the eligibility requirements and pay their employees accordingly. Penalties may apply in cases of fraudulent claims. In addition, anti-abuse rules will be proposed to ensure that the subsidy is not inappropriately obtained and to ensure that employees are paid the amounts they are owed.

Draft legislation has not yet been released for this program. As with previous announcements, the draft legislation will often make some changes to the program from the original announcements.

Additional details can be found at the following site:

https://www.canada.ca/en/department-finance/news/2020/04/the-canada-emergency-wage-subsidy.html

10% Temporary Wages Subsidy Program

Announced on March 18, 2020, the Temporary Wages Subsidy Program is 10% of remuneration paid during the period from March 18 to June 19, 2020, up to $1,375 per employee and $25,000 per employer maximums. Businesses were to benefit immediately from this support by reducing their remittances of income tax withheld from their employees’ remuneration. Remittances for CPP and EI cannot be offset by the subsidy.

Who is Eligible?

In order to be eligible, the employer must meet three criteria:

employ one or more individuals in Canada (“eligible employees”);
was registered, with a business number and a payroll remittance account, on March 18, 2020; and
be any of the following:
1. most Canadian-controlled private corporations (CCPCs), based on eligibility for the small business deduction (see below);
2. an individual (other than a trust);
3. a partnership, all members of which are entities described in (i), (ii), (iii) or (v);
4. a non-profit organization (exempt from income tax pursuant to Subsection 149(1)(l)); or
5. a registered charity.

Eligibility for a CCPC requires that the CCPC had a business limit, for purposes of the small business deduction, greater than nil for its most recent tax year ended prior to March 18, 2020 (or, if it has no taxation year ended before that date, would have a business limit greater than nil if its taxation year ended on March 17, 2020).

For this purpose, the reduction to the business limit caused by passive income (“Adjusted Aggregate Investment Income”) is not considered. However, a CCPC which had no business limit for other reasons (for example, its taxable capital, in combination with other associated corporations exceeded $15 million; it was a member of an associated group of corporations and was not assigned any portion of the business limit; or it assigned its entire business limit to one or more other CCPCs under the specific corporate income rules) would not qualify for the subsidy.

How is it Calculated?

A portion of remuneration (e.g. wages, salaries) paid to employees from March 18, 2020 to June 19, 2020, inclusive, will be recoverable by the employer. The legislation indicates that several amounts determining the available subsidy will be prescribed by regulation, and those regulations are not in the draft legislation. The amounts in italics below are amounts that were announced in the ERP, and are expected to be formally set by regulations yet to be released.

The subsidy will be equal to the least of three amounts, as follows:

a fixed maximum for each employer of $25,000. CRA has indicated that this amount is per employer, and is not required to be shared between related or associated employers;
a fixed percentage, being 10%, of remuneration paid to eligible employees during the period from March 18, 2020 to June 19, 2020; or
the number of eligible employees employed during the period from March 18, 2020 to June 19, 2020, multiplied by a fixed amount, $1,375.

Therefore, to get the maximum benefit of $25,000, the employer must have more than 18 employees with total wages no less than $250,000 during the period.

How To Apply?

No formal application process has been released. Any subsidy to which the employer is entitled is deemed to have been remitted as a payroll remittance for income taxes withheld from the employees’ remuneration. In other words, source deduction remittances for income tax, but not for CPP or EI, can be reduced for the available subsidy, providing an immediate cash flow benefit to the employer.

Any subsidy received will be taxable income to the employer as income in the year received.

Additional details can be found at the following site:

https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

April 1, 2020

Update on Tax and Business Measures Resulting from COVID-19

Outlined below is the latest update on the tax and business measures introduced to assist individuals and businesses with challenges faced as a result of COVID-19. The updates below are what has changed since our posting dated March 27th.

The Federal Temporary Wage Subsidy details are still not released. The latest announcement was to increase the subsidy to 75% of wages up to $58,700 per employee, but limit the subsidy to those employers facing a 30% reduction in sales. We are expecting the details to be issued soon and will update you when they are published.
Ontario has issued an EHT exemption (previously reported). All employers will be eligible for a $1 Million exemption. This increases the exemption from the previous $490,000. For employers with a payroll greater than $5Million they formerly would have had no exemption, but they are now eligible for the $1 Million. This will result in savings of up to $19,500.
The Ontario Regional Opportunities Investment Tax Credit gives an investment tax credit for class 1 or class 6 additions after March 20th. The credit is only available for certain regions. Hamilton, GTA, Niagara, Halton, Wellington, KW, Brantford are ALL excluded from this credit. See the following map showing the “non-eligible” and “Eligible” areas for your reference.
The $2,000 per month Canadian Emergency Response Benefit (CERB) criteria and application site is not yet available. It is supposed to be available next week. When released it will give more details on who is eligible. We expect once released, the website will be overloaded in the first few days.
The government has also established a Business Credit Availability Program (BCAP) to provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). This program includes:

Canada Emergency Business Account

The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced. Up to $10,000 of this loan may be forgiven where the balance of the loan is repaid on or before December 31, 2020. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Small businesses and not-for-profits should contact their financial institution to apply for these loans.

Loan Guarantees and Co-Lending Programs for Small and Medium Sized Enterprises (“SMEs”)

EDC will work with financial institutions to issue new operating credit and cash flow term loans while BDC will work with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
Eligible businesses may obtain incremental credit amounts of up to $6.25 million through these programs. These programs will roll out in the three weeks after March 27 and interested businesses should work with their current financial institutions.

Extending the Work-Sharing Program – The maximum duration of the Work-Share program has increased from 38 to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.

As things change, we will try to keep you updated.

There are a number of other proposals by both the Federal and Ontario Governments that we have not commented on. Additional details can be found at the following sites:

https://www.canada.ca/en/department-finance.html

https://budget.ontario.ca/2020/marchupdate/

March 27, 2020

Update on Tax and Business Measures Resulting from COVID-19

Filing Deadlines

On March 18, the government announced the deferral of filing deadlines for personal and Trust tax returns. On March 26th, additional filing deadlines were extended. To summarize, the deadlines are now as follows:

Personal returns that were due on April 30th are extended to June 1, 2020.
Self Employed Individual’s personal tax returns are still due on June 15, 2020.
Trust returns with a December 31, 2019 year end, which were due on March 30th, have been extended to May 1, 2020.
Trusts, partnerships and NR4 information returns that were due the end of March are all extended to May 1, 2020.
Any other tax returns, forms and elections that are due after March 18, 2020 are now extended to June 1, 2020. This includes corporate tax returns which were due after March 18, 2020 are now extended to June 1, 2020, but does not include HST returns.
The US Treasury Secretary announced that the filing deadline for US tax Returns for all Taxpayers has been automatically extended to July 15, 2020, for federal income tax returns originally due on April 15, 2020.

Payment Due Dates

All income tax payments due after March 18, 2020 are deferred until August 31, 2020. For corporations, this only includes Part I Tax. It does not include Part IV tax to corporations on dividends received. On March 27th it was announced that Customs and Excise tax remittances and HST remittances were extended until June 30, 2020. Payroll remittances have not been extended.

Emergency Response Benefit

The Emergency Response Benefit legislation combines the previously announced “Emergency Care Benefit” and the “Emergency Support Benefits” as described in the March 18, 2020 COVID-19 Economic Response Plan (ERP).

This would provide a taxable benefit of $2,000 (previously announced as up to $900 biweekly) a month for a maximum of 16 weeks to individuals. These payments are not subject to law relating to bankruptcy or insolvency and are not garnishable.

This benefit is available for the following:

those who are infected, in isolation, are caring for a family member who is sick, or are required to care for children due to school closures but are not eligible for EI sickness benefits,
workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work,
wage earners and self-employed individuals, including contract workers, who are not eligible for conventional EI benefits.

The legislation requires the applicant to be an “eligible worker”, which means that they must be:

at least 15 years of age;
resident in Canada; and
for 2019, or in the 12-month period preceding the day on which they make an application, had a total income of at least $5,000 from:
- employment;
- self-employment;
- certain EI benefits (maternity and parental benefits); and
- allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption.

The worker, whether employed or self-employed, must cease to work for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment.

For the period of cessation of work, the applicant cannot receive income from the sources listed above, and cannot receive any other EI benefits. Further, workers that quit voluntarily are not eligible.

Under the current proposals there is no mention of related party exceptions or claw back under the EI rules. We will have to wait and see if this is addressed in the application process.

The application process has not yet been announced but will be made available in the first week of April, 2020. A worker may apply for an income support payment for any four-week period falling within the period beginning on March 15, 2020 and ending on October 3, 2020 (payments are made every four weeks). Canadians would begin to receive their payments within 10 days of application.

Goods and Services Tax Credit

The GST Tax Credit has been increased. As is the case with the regular GSTC, the one-time payment will depend on family composition (whether the recipient is married or single; and the number of children in the household). As well, the benefit is income-tested, and is reduced when “adjusted income” exceeds $37,789. Like the quarterly GSTC, this benefit is managed under the income tax system. No special application is required as the payment will be calculated by CRA based on income tax returns filed for 2018.

RRIF Minimum Withdrawal

In recognition of the substantial recent value declines in the investment markets, the minimum withdrawal from a RRIF or a money purchase pension plan for 2020 (computed as a percentage of its value on January 1, 2020) will be reduced by 25%. No similar reduction is available for defined benefit individual pension plans.

Temporary Wages Subsidy

The Temporary Wage Subsidy was originally announced to be effective for wages paid between March 18 and June 19 at a rate of 10%. In his press conference on Friday March 27th, Prime Minister Trudeau announced the wage subsidy would increase to 75% from the originally announced 10% rate. However, no other details were provided. We expect the details to be published this coming week and will send an update once available.

Ontario Employer Health Tax Exemption

Employer Health Tax (EHT) is a payroll tax paid by employers based on their total annual Ontario remuneration. The government proposes to retroactively double the EHT exemption from $490,000 to up to $1 million of an eligible employer’s payroll.

Eligible employers include private-sector employers with total annual Ontario remuneration of less than $5 million and registered charities.

Effective Dates: January 1, 2020 – January 1, 2021

Ontario Regional Opportunities Investment Tax Credit

The Ontario government is proposing to introduce a new 10% refundable Regional Opportunities Investment Tax Credit. The credit will be available to Canadian-controlled private corporations (CCPCs) that make expenditures in excess of $50,000 and up to a limit of $500,000 on qualifying investments that become “available for use” (determined in accordance with the Income Tax Act (Canada)) on or after March 25, 2020 in specified regions of Ontario outside the Greater Toronto Area (GTA).

A qualifying investment will include an eligible expenditure for capital property included in Class 1 and Class 6 for the purposes of calculating capital cost allowance; e.g. expenditures for constructing, renovating or acquiring eligible commercial and industrial buildings and other assets.

Effective Dates: March 25, 2020 – March 25, 2023 (mandatory review every three years)

Ontario Regional Opportunities Investment Tax Credit

Under Ontario’s proposals, businesses will also be able to defer certain WSIB filing and remittance obligations. These amounts remain owing, but businesses will not have to pay until August 31.

Ontario Financial Support

The Ontario Government has pledged additional support for 194,000 low-income seniors by proposing to double the Guaranteed Annual Income System (GAINS) maximum payment to $166 per month for individuals and $332 per month for couples for six months, starting in April 2020.

Also they have proposed to assist families in paying for extra costs associated with school and daycare closure during the COVID-19 outbreak by providing a one-time $200 payment per child up to 12 years of age, and $250 for those with special needs, including kids enrolled in private schools.

There are a number of other proposals by both the Federal and Ontario Governments that we have not commented on. Additional details can be found at the following sites:

https://www.canada.ca/en/department-finance.html

https://budget.ontario.ca/2020/marchupdate/

March 24, 2020

US Treasury Announces Extended Deadlines and Payment Relief for US Tax Filers

As part of the response to the ongoing COVID-19 pandemic, on March 20, 2020, the US Treasury Secretary announced that the filing deadline for all Taxpayers has been automatically extended to July 15, 2020, for federal income tax returns originally due on April 15, 2020.

Taxpayers can also defer federal income tax payments (including estimated tax payments) due on April 15, 2020, to July 15, 2020, without penalties and interest. The deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers.

The relief is only applicable to Federal income tax and not state income tax. If you are required to file a state income tax return, please refer to the specific state for their response measures.

Please contact us if you have any questions.

Adrienne Barclay, CPA, CA
CPA (New Hampshire)
Tax Partner
Main line: (905) 523-0000 ext 254
Main fax: (905) 523-4681

March 19, 2020

Tax and Business Measures Resulting from COVID-19

Yesterday, the federal government announced measures to help individuals and businesses offset the economic impacts of COVID-19. Tax and other related measures include:

Extending the income tax return filing due dates, and taxes payable deadlines for individuals and certain trusts.

The Canada Revenue Agency (CRA) will, for:

an individual’s 2019 taxation year, defer the tax return filing due date from April 30, 2020, to June 1, 2020 (the filing due date remains June 15, 2020, for individuals and their spouses that are self employed individuals).
a trust with a December 31, 2019 taxation year end, defer the tax return filing due date from March 30, 2020, to May 1, 2020.
all taxpayers, defer, until after August 31, 2020, the payment of any income tax amounts that become owing after March 17, 2020 and before September 2020; this applies to Corporate tax balances due, as well as instalments, under Part I of the Income Tax Act (no interest or penalties will accumulate on these amounts during this period). It does not apply to HST, payroll or other taxes due.
The CRA encourages individuals who expect to receive benefits under the Goods and Services Tax Credit (GSTC), or the Canada Child Benefit, to file their returns promptly to ensure that their entitlements for the 2020-21 benefit year are properly determined.
To help tax preparers file individuals’ tax returns, effective March 18, 2020, the CRA will temporarily recognize electronic signatures as having met the signature requirements of the Income Tax Act.

Reducing the required minimum withdrawals from Registered Retirement Income Funds by 25% for 2020.

Temporary income support for workers and parents

Canadians without paid sick leave (or similar workplace accommodation) who are sick, quarantined or required to stay home to care for children, the federal government will:

temporarily waive, effective March 15, 2020, the one-week waiting period for those individuals in imposed quarantine that claim Employment Insurance (EI) sickness benefits
waive the requirement to provide a medical certificate to access EI sickness benefits
introduce the Emergency Care Benefit, which will provide up to $900 bi-weekly, for up to 15 weeks (administered through the CRA), to provide income support to:
- workers, including the self-employed, who are quarantined or sick with COVID-19, or taking care of a sick family member with COVID-19, but do not qualify for EI sickness benefits
- parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not
Application for the Emergency Care Benefit will be available in April 2020, and require Canadians to attest (and re-attest every two weeks) that they meet the eligibility requirements.

Support for Individuals

The Government is proposing the following:

to provide a one-time special payment by early May 2020 through the Goods and Services Tax credit (GSTC). This will double the maximum annual GSTC payment amounts for the 2019-20 benefit year. The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples.
to increase the maximum annual Canada Child Benefit (CCB) payment amounts, only for the 2019-20 benefit year, by $300 per child. The overall increase for families receiving CCB will be approximately $550 on average; these families will receive an extra $300 per child as part of their May payment.
Placing a six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals.

Temporary wage subsidies for eligible small employers

The federal government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will equal 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.

What is missing?

The release does not mention extending the filing deadline for any corporate tax returns, partnership returns or other forms that may be due on March 31. Presumably the deferral of payments due after March 17 until after August 31, 2020 will protect the corporate taxpayers, but does not address the partnerships.
The relief for small employers in #5 above does not address those employers that are self-employed or operate their business through a partnership.

For more detailed descriptions please go to the Department of Finance website at the link below.

https://www.canada.ca/en/department-finance/news/2020/03/canadas-covid-19-economic-response-plan-support-for-canadians-and-businesses.html

Taylor Leibow Covid-19 Tax Update

Updates:

January 12, 2022

GOVERNMENT EXTENDS LOAN FORGIVENESS REPAYMENT DEADLINE FOR THE CANADA EMERGENCY BUSINESS ACCOUNT

January 11, 2022

ONTARIO COVID-19 SMALL BUSINESS RELIEF GRANT – $10,000

CANADA EMERGENCY WAGE SUBSIDY AUDITS

January 6, 2022

COVID SUBSIDY UPDATES – SUPPORT FOR BUSINESSES

The Tourism and Hospitality Recovery Program (THRP)

The Hardest-Hit Recovery Program (HHRP)

Changes to the Eligible Rent Expense Limit

Local Lockdown Support

Small Business Air Quality Improvement Tax

Ontario Business Costs Rebate Program (OBCRP)

COVID SUBSIDY UPDATES – SUPPORT FOR INDIVIDUALS

Canada Worker Lockdown Benefit (CWLB)

Canada Recovery Caregiver Benefit (CRCB)

Canada Recovery Sickness Benefit (CRSB)

July 26, 2021

Canada Recovery Hiring Program (CRHP)

March 16, 2021

CRA Administrative Updates

CANADA EMERGENCY RENT SUBSIDY (CERS)

Interpretation – Eligible Expenses for Tenants

Administrative Changes

CANADA EMERGENCY RESPONSE BENEFIT (CERB) – SELF-EMPLOYED INDIVIDUALS

COVID-19 BENEFITS AND YOUR TAXES

February 8, 2021

ONTARIO SUPPORT FOR SMALL BUSINESSES

ONTARIO SMALL BUSINESS SUPPORT GRANT (OSBSG)

PROPERTY TAX AND ENERGY COST REBATES

COVID-19 ENERGY ASSISTANCE PROGRAM – SMALL BUSINESS (CEAP-SB)

ONTARIO’S MAIN STREET RELIEF GRANT: PPE SUPPORT

Canada Emergency Wage Subsidy (CEWS) Update

January 19, 2021

SUBSIDY FILING DEADLINE REMINDER

T4 REPORTING REQUIREMENTS UPDATE

EMPLOYER-PROVIDED BENEITS AND ALLOWANCES – COVID-19

EMPLOYEE OFFICE USE OF HOME – COVID-19

CANADA RECOVERY BENEFIT (CRB)

December 1, 2020

GOVERNMENT OF CANADA SUBSIDY UPDATES

CANADA EMERGENCY RENT SUBSIDY (CERS)

Eligible Entities

Eligible Expenses

Subsidy Amount

CANADA EMERGENCY WAGE SUBSIDY (CEWS)

TEMPORARY WAGE SUBSIDY (TWS)

CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

WE’RE HERE TO HELP

Resources

July 24, 2020

The Canada Emergency Wage Subsidy has been extended until December, 2020

CEWS Extension

Adjustment to Revenue Decline Measurements

Changes to the CEWS Rates Going Forward

CEWS Top-Up

Changes to Eligible Employees

Pre Crisis Remuneration

Application Deadline

June 9, 2020

COVID-19 Tax and Business Update

April 22, 2020

COVID-19 Tax and Business Update

April 13, 2020

The United States Economic Impact Payments

April 10, 2020

COVID-19 Tax Update

April 8th Changes

Other April 8, 2020 Announcements

April 2, 2020

Update on COVID-19 Wage Subsidies for Employers

April 1, 2020

Update on Tax and Business Measures Resulting from COVID-19

March 27, 2020

Update on Tax and Business Measures Resulting from COVID-19

March 24, 2020

US Treasury Announces Extended Deadlines and Payment Relief for US Tax Filers

March 19, 2020

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