The last couple months have been very distressing from a medical and self-isolation perspective. They have also been difficult from a financial and business perspective. I was recently thinking about whether we could learn any financial and business lessons from this time. I came up with six lessons, which The Globe and Mail published on Thursday. I would like to thank Roma Luciw of the Globe for her editing skills.The article can be found here. If the article does not open, it can be accessed at no charge by signing up with The Globe.
Government program update
- The 75% wage subsidy program was changed last week. Please see this very detailed tax alert for the latest.
- On Wednesday April 15th, the Liberal government expanded the Canada Emergency Response Benefit (“CERB”) for people who make a $1,000 or less a month. See this summary of the CERB inclusive of the April 15th changes.
- On Thursday April 16th, the government announced an expansion of the the Canada Emergency Business Account and a new Canada Emergency Commercial Rent Assistance program to help small businesses with their rents. See this government release.
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Hello Mark, on CRA's website, it clearly says that the deferral of corporate income tax payments to September 1, 2020 "applies to balances and instalments under Part I of the Income Tax Act due on or after March 18 and before September 1, 2020". In fact, other taxes, e.g. under Part IV, are specifically excluded. What about provincial (e.g. BC, Ontario etc) corporate income tax that is administered by CRA (which are not ITA Part I taxes)? Quebec and Alberta have each announced similar payment deferrals as they administer their tax system independently. I would be surprised if CRA does not also provide an extension for provincial income taxes that they administer, but given the wording used (Part I of the Income Tax Act), shouldn't this be clarified? Thank you.
ReplyDeleteHi Anon:
DeleteAll good points. There are several clarifications that would be helpful. I would suggest the average small biz owner assumes the tax deferral applies to all situations, which may be problematic. For example a December year end whose tax was due 2mths after ye and was not paid prior to March 18th. When is this tax due? Some people say as of Feb 28th, others that the tax is deferred. Clarity would be useful.