The Government of Canada is making additional investments to support Canadian businesses from the economic impacts of COVID-19. These new investments provide support to financial institutions and allow them to quickly provide credit and liquidity options for a range of businesses.
These measures are a part of the Government of Canada’s COVID-19 Economic Response Plan, which provides direct support and tax deferrals to Canadian workers and businesses to help them in these difficult times.
Deferral of Sales Tax Remittance and Customs Duty Payments
Deferral of Customs Duty and Sales Tax for Importers
New Loan Programs for Businesses
Canada Revenue Agency’s Additional Measures for Individuals and Businesses
In order to provide support for Canadian businesses during these unprecedented economic times, the Government is deferring Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020.
This measure could provide up to $30 billion in cash flow or liquidity assistance for Canadian businesses and self-employed individuals over the next three months
GST/HST Remittance Deferral
The GST/HST applies to sales of most goods and services in Canada and at each stage of the supply chain. Vendors must collect the GST/HST and remit it (net of input tax credits) with their GST/HST return for each reporting period.
Vendors with annual sales of more than $6 million remit and report monthly, and those with annual sales of $1.5 million to $6 million are able to remit and report on a quarterly basis (or monthly if they choose to). Small vendors can report annually.
The GST/HST amounts collected are generally due by the end of the month following the vendor’s reporting period: e.g., for a monthly filer, the GST/HST amounts collected on its February sales are due by the end of March.
To support Canadian businesses in the current extraordinary circumstances, the Minister of National Revenue will extend until June 30, 2020 the time that:
Businesses in need of information about their particular obligations may contact the Canada Revenue Agency or refer to its website.
Imported goods by businesses are generally subject to the GST, at a rate of 5 per cent, as well as applicable customs duties, which vary by product and country of origin. While the vast majority of imports enter Canada duty-free, some tariffs remain, especially on consumer goods.
The Customs Act, for which the Minister of Public Safety and Emergency Preparedness is responsible and which is administered by the Canada Border Services Agency (CBSA), governs the levying and payment of customs duties in Canada.
Typically, payments owing for customs duties and the GST on imports are due before the first day of the month following the month in which the Statements of Accounts are issued.
Section 33.7(1) of the Customs Act allows the Minister of Public Safety and Emergency Preparedness or an officer designated by the President of the CBSA to extend, in writing, the timeline for accounting or payment of amounts owing.
Under this authority, payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.
Businesses in need of information about their particular accounting and payment obligations on imported goods may contact the Canada Border Services Agency for more details.
Canada Emergency Business Account
To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada is announcing the launch of the new Canada Emergency Business Account, which will be implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).
This $25 billion program 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, due to the economic impacts of the COVID-19 virus.
This will better position them to quickly return to providing services to their communities and creating employment.
Small businesses and not-for-profits should contact their financial institution to apply for these loans.
To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
A New Loan Guarantee for Small and Medium Enterprises
Small and medium-sized enterprises (SMEs) may be particularly vulnerable to the impacts of COVID-19. To support their operations, EDC will guarantee new operating credit and cash flow term loans that financial institutions extend to SMEs, up to $6.25 million.
The program cap for this new loan program will be a total of $20 billion for export sector and domestic companies.
A New Co-Lending Program for Small and Medium Enterprises
To provide additional liquidity support for Canadian businesses, the Co-Lending Program will bring the Business Development Bank of Canada (BDC) together with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.
Eligible businesses may obtain incremental credit amounts up to $6.25 million BDC’s portion of this program is up to $5 million maximum per loan. Eligible financial institutions will conduct the underwriting and manage the interface with their customers. The potential for lending for this program will be $20 billion.
The Canada Revenue Agency (CRA) understands that individuals and businesses might be dealing with difficulties filing their income and benefit returns, and could experience cash-flow challenges in the coming months. In response, the CRA will be applying these additional measures:
Administrative tax measures
In addition to the income tax filing and payment deadline extensions, unless otherwise noted, administrative income tax actions required of taxpayers by the CRA that are due after March 18, 2020, can be deferred to June 1, 2020. These administrative income tax actions include returns, elections, designations and information requests. Payroll deductions payments and all related activities are excluded.
Trusts, Partnerships and NR4 Information Returns
The deadlines for trusts, partnership and NR4 information returns are all extended to May 1, 2020. This is due to administrative requirements in advance of the June 1, 2020 deadline for filing individual income tax and benefit returns.
Objections
Any objections related to Canadians' entitlement to benefits and credits have been identified as a critical service and will continue to be processed during the COVID-19 crisis. As a result, there should not be any delays associated with the processing of these objections.
With respect to objections related to other tax matters filed by individuals and businesses, the CRA is currently holding these accounts in abeyance. No collection action will be taken with respect to these accounts during this period of time.
Extending the deadline for filing an objection
For any objection request due March 18 or later, the deadline is effectively extended until June 30, 2020.
Canada Pension Plan/Employment Insurance (CPP/EI) appeals to the Minister
In cases where taxpayers wish to file an appeal in relation to CPP/EI rulings decision, they are encouraged to do so through MyAccount to avoid potential delays.
The CPP/EI appeals program is currently only actioning appeals that are related to cases where EI benefits are pending. These cases will be treated on a priority basis. All other appeals will be actioned when normal services resume.
In addition, the CPP/EI Appeals to the Minister program will exercise discretion on a case by case basis when additional time is required to respond to a request.
Deadlines for charities
CRA is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020 and December 31, 2020. This will allow charities more time to complete and submit their T3010.
Suspending audit activities
CRA will not initiate contact with taxpayers for audits, with certain exceptions, This includes:
No audits should be finalized and no reassessments should be issued.
Suspending collections on new debt
Collections activities on new debts will be suspended until further notice, and flexible payment arrangements will be available.
Payment arrangements are also available on a case-by-case basis if you can’t pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full.
If you have concerns and require contact with a Collections Officer, please contact our toll free number 1-800-675-6184 between 8:00 a.m. and 4:00 p.m. your local time.
Requirement to pay (RTP)
Banks and employers do not need to comply or remit on existing RTPs during this time.
Taxpayer relief requests
Taxpayers who are unable to file a return or make a payment by the tax-filing and payment deadlines because of COVID-19 can request the cancellation of penalty and interest charged to their account. Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met. For more information about deadlines, see Helping Canadians with the economic impact of the COVID-19 Pandemic.
For more information about taxpayer relief and how to make a request to the CRA to have interest and/or penalties cancelled, please go to Canada.ca/taxpayer-relief.
For more information, visit Helping Canadians with the economic impact of the COVID-19 Pandemic.
There have been a lot of headlines lately concerning rent - whether or not tenants have to pay. So where does that leave landlords?
Currently, the Landlord and Tenant Board (LTB) has suspended (until further notice):
While there are groups and websites calling on people to not pay their rent, the provincial government is not in agreement.
During the March 26 press briefing, Premier Doug Ford said, "I heard there was a petition going around (saying) 'just don't pay rent.' That's wrong, that's hurting people across the board. We're standing up here for the tenants here so please don't take advantage of it."
Minister of Housing and Municipal Affairs Steve Clark echoed the Premier's sentiments in an op-ed published in today's Toronto Sun.
"Tenants who can pay their rent must do so, to the best of their abilities. But I want to be very clear - you cannot be forced to leave your home if you cannot pay your rent on April 1. Period. Today, I'm calling on landlords to be as flexible as possible when it comes to collecting rent, starting with April, at a time when many people are struggling. The same goes for any planned rent increases landlords are contemplating, whether already approved by the Landlord and Tenant Board or not.
Of course, some landlords are also facing challenges, especially small landlords. While mortgage deferrals are available, some of you are waiting for news from your bank. Everyone needs to do their part right now.
To the tenants out there who are having challenges paying rent, please speak to your landlord about whether it can be postponed or if other payment arrangements can be agreed to. And landlords, please be as flexible as you can..."
According to a March 19, 2020 release on Tribunal Ontario's website, all incoming applications will continue to be processed. Hearings for matters not relating to evictions will proceed by the most appropriate means (telephone or written hearing) and orders for these matters will be issued.
On March 25, the Minister of Finance, Rod Phillips delivered a 1-year fiscal updated entitled "Ontario's Action Plan 2020: Responding to COVID-19."
The government will provide $7 billion in additional resources for the health care system and provide direct support for people and jobs. It will also make available $10 billion in support for people and businesses through tax credits and deferrals to improve their cash flow, protection of jobs and household budgets, while providing resources to protect their health. The fiscal update includes historic levels of prudence, including a dedicated $1.0 billion COVID‐19 contingency fund as part of the additional health care investments, an increased contingency fund of $1.3 billion and a reserve of $2.5 billion to provide continued flexibility.
Fiscal Update Highlights:
$3.7 billion to support people and jobs, including:
$10 billion in support for people and businesses to improve cash flows by:
Key Business Sector Details:
Employer Health Tax
Regional Opportunities Investment Tax Credit
Support for People and Businesses to Improve Cash Flow
$6 Billion in Tax Deferrals
$1.8 Billion in Education Property Tax Deferrals
$1.9 Billion in Workplace Safety Expenses
Responsibly Managing the Province’s Finances
New financial measure will allow insurance premium payment deferrals for six months.
Toronto - The Ontario government is enabling $1.9 billion in relief for employers to reduce the financial strain on business brought on by COVID-19. The measure, which will run through the Workplace Safety and Insurance Board (WSIB), will see premium payments deferred for six months for all businesses in the province.
"During this unprecedented period of uncertainty and hardship, our government is doing everything possible to support businesses and protect jobs," said Monte McNaughton, Minister of Labour, Training and Skills Development. "By making this change today, we are building upon the substantial financial help we are providing business owners and workers. The top priority is to keep people safe."
All employers covered by the WSIB's workplace insurance are automatically eligible for the provisions of the relief package and can defer premium reporting and payments until August 31, 2020. They will not be required to opt in to receive this benefit.
Additionally, the WSIB will cease interest accrual on all outstanding premium payments. They will not charge penalties during this six-month deferral period. There will be no negative consequences for businesses who defer premium reporting and payments. The WSIB will continue to fully cover workers at eligible workplaces.
"We have worked closely with the Government of Ontario to help Ontario businesses as they face this unprecedented challenge," said Elizabeth Witmer, Chair of the WSIB. "We're here to help."
The relief program is in addition to a $17 billion package included in Ontario's Action Plan: Responding to COVID-19.
The government's action plan will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets.
Additionally, through the WSIB, the government reduced costs to employers by a new rate framework and the elimination of the unfunded liability charge, putting more than $2 billion back into the economy.
"Our government is working day and night to provide Ontarians with certainty and support during this difficult time. This Relief Package being implemented by the WSIB will help sustain businesses, protect our economy and save jobs," said Minister McNaughton.
The new measure builds on the government's previous actions to support business and protect jobs.
Quick Facts
The City of Pickering remains committed to working with the development community during these uncertain times and evolving business operations.
Although their facilities are currently closed to the public, they are "open for business" via telephone, email, and other digital means.
View/Download Service Level Update
Dear OHBA Members,
Premier Doug Ford made it clear, the construction industry has been put on notice regarding health and safety standards on jobsites during the COVID-19 State of Emergency with residential construction being included as an essential workplace under that order.
The Premier stated that Ministry of Labour inspectors will be active on jobsites to assess sanitary conditions and to confirm that enhanced precautions are being taken. Premier noted that while the majority of businesses, general contractors, renovators and builders are taking extra precautions, there remain a few bad actors in the sector.
In Ontario, workers have always had the right to refuse work if the deem conditions unsafe.
Premier Ford has been absolutely crystal clear: if the industry does not take every step necessary to look after the health and safety of workers, jobsites will be shut down.
If businesses are not meeting the health and safety standards of the Ministry of Labour, jobsites will be shut down.
It is NOT business as usual - take enhanced health and safety seriously and implement new measures or be shut down.
OHBA leadership agrees with the Premier. If jobsites are not safe, they should be shut down. Worker safety is the top priority during this COVID-19 State of Emergency.
There have been public calls to "suspend" or "pause" construction sites for up to 2 weeks by various groups and now the Leader of the Ontario Liberal Party.
It is important that members immediately enhance health and safety on their sites and implement COVID-19 protocols if they want to keep their sites open. We know many of our homebuilders and renovators are on the tools, working with their employers and trade partners, so let's keep each other safe.
As the Ministry of Labour and Chief Prevention Officer work to provide more direction, we encourage you to consult our industry guide on enhanced health and safety precautions and implement them as soon as possible.
This document has been approved for circulation by the respective Co-chairs of the Provincial Labour Management Health and Safety Committee - Section 21 Construction and the Provincial Labour Management Safety Committee - Section 21 Electrical Utility.
Let's keep each other safe. We are all in this together. #OntarioSpirit
March 25, 2020 - Ottawa, Ontario - Department of Finance Canada
The Government of Canada is taking strong, immediate and effective action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. No Canadian should have to choose between protecting their health, putting food on the table, paying for their medication or caring for a family member.
To support workers and help businesses keep their employees, the government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.
The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.
The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.
Canadians who are already receiving EI regular and sickness benefits as of today would continue to receive their benefits and should not apply to the CERB. If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply. Canadians who are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.
The government is working to get money into the pockets of Canadians as quickly as possible. The portal for accessing the CERB would be available in early April. EI eligible Canadians who have lost their job can continue to apply for EI here, as can Canadians applying for other EI benefits.
Canadians would begin to receive their CERB payments within 10 days of application. The CERB would be paid every four weeks and be available from March 15, 2020 until October 3, 2020.
This benefit would be one part of the government’s COVID-19 Economic Response Plan, to support Canadian workers and businesses and help stabilize the economy by helping Canadians pay for essentials like housing and groceries, and helping businesses pay their employees and bills during this unprecedented time of global uncertainty.
“We know that people are worried about their health, their jobs and their financial situations. Our government is doing whatever it takes to protect the health and safety of Canadians, and to support workers, families and businesses. The Canada Emergency Response Benefit would make sure that money gets in the hands of workers as quickly as possible to support them in their time of need, and would help businesses keep their employees during this difficult period. Canadians can rest assured that the government stands ready to take any and all necessary actions as we continue to confront these challenging times together.” - Bill Morneau, Minister of Finance
“Through the Canada Emergency Response Benefit, the Government of Canada would be helping support those Canadians who are unable to work due to the COVID-19 pandemic. It is during these difficult times that Canadians should not have to choose between protecting their health and continuing to support their families. We recognize this, and are there for them.” - Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion
“The government understands that the outbreak of COVID-19 is having a significant impact on all Canadians. Through the Canada Emergency Response Benefit, we would provide much-needed financial support to those who have lost their income because of COVID-19. The Canada Revenue Agency is playing an important role by getting benefit payments to Canadians quickly and efficiently.” - Diane Lebouthillier, Minister of National Revenue
The province has launched a toll-free line 1-888-444-3659 to provide support to Ontario businesses who have questions about the province's recent emergency order to close at-risk workplaces following recommendations by Ontario's Chief Medical Officer of Health.
On Monday, the province issued an emergency order to close at-risk workplaces and encourage non-essential businesses to find ways to help their employees work from home. The government also reminded businesses to put in place protocols for physical distancing and regular hand-washing in order to protect the health and safety of employees and the general public.
Businesses who have questions about closures of at-risk workplaces or how emergency measures impact their business or employment can call the Stop the Spread Business Information Line at 1-888-444-3659.
Help is available from Monday to Sunday, from 8:30 a.m. - 5:00 p.m.
A complete list of essential services is available on the Government of Ontario's website.
Today, during Premier Doug Ford's announcement, he mentioned that the Ministry of Labour and the Chief Prevention Officer would be releasing new health and safety measures soon.
DRHBA will forward that information to members as soon as it becomes available. In the meantime, please review the industry statement released on March 20, that outlines some best practices for construction sites.
View/download the document
Pickering, ON, March 24, 2020 – In support of the Province of Ontario’s and Region of Durham’s efforts to mitigate the spread of COVID-19, Deputy Mayor, Kevin Ashe has declared a state of emergency in the City of Pickering to ensure that the municipal government continues to be agile and responsive in managing this rapidly evolving crisis.
Over the past 10 days, the City has closed all of its facilities to the public; suspended all City-run programs, events, and meetings; activated its Emergency Operations Centre; waived property tax penalties and interest charges for 60 days; and closed all municipal playgrounds and play structures. While not open to the public, Pickering City Hall and the Operations Centre remain minimally staffed to ensure the continued delivery of essential and critical services. The Customer Care Centre is still operating Monday to Friday between 8:30 am to 4:30 pm, and can be reached at 905.683.7575, customercare@pickering.ca, or through live chat at pickering.ca/livechat.
For the most up-to date COVID-19 information including news releases, property taxes, service level delivery, and safety tips, visit pickering.ca/covid19 or follow the City’s corporate social media accounts on Facebook, Twitter, and Instagram.
“We have declared a state of emergency to send the strongest message possible to residents and businesses that everyone must align their attitudes and actions if we are to be successful in flattening the curve and protecting our healthcare system. Members of Council and staff have been working around the clock to manage this emergency, and we need everyone to do their part by staying at home.”
- Deputy Mayor, Kevin Ashe
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