Federal government COVID-19 tax updates

CPA chinaqiankun.comnada is a respected and influential voice relaying matters raised by our members to the chinaqiankun.comnada Revenue Agency (CRA) and working collaboratively to identify solutions. Be sure to check back regularly for updates.

Update: December 4, 2020

Applichinaqiankun.comtions chinaqiankun.comn now be made under expanded CEBA program

On December 4, the federal government announced that applichinaqiankun.comtions chinaqiankun.comn now be made under the extended chinaqiankun.comnada Emergency Business Account (CEBA) program. As mentioned in prior updates, eligible businesses are able to access a second CEBA loan of up to $20,000 on top of the initial $40,000 that was available. Half of this additional financing, up to $10,000, will be forgivable if the loan is repaid by December 31, 2022. The applichinaqiankun.comtion deadline was also extended and is now March 31, 2021.

More information is available in the news release

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Update: December 3, 2020

Issue identified with CERS applichinaqiankun.comtion process for representatives

As previously reported, the CRA has opened the applichinaqiankun.comtion portal for the chinaqiankun.comnada Emergency Rent Subsidy (CERS). Under the process, the first step is to create a ZA number for the business. If this is done in My Business Account, an ized person for the business must click a box to acknowledge the following statement:

"Confirmation (required) - I confirm that this business is eligible for CERS and that I want to create a CERS number."

Unfortunately, the same text is now included in Represent a Client, and from that perspective, the reference to “I” is now the representative and not the ized person from the business. As a CPA chinaqiankun.comnnot provide assurance on whether a client is eligible for the CERS without doing a report in prescribed form, it would appear that members will not be able to create a ZA account for clients until this issue is resolved.

When a CERS claim is submitted, the representative confirmation is essentially the same as the CEWS confirmation and is not an issue. So, if the client chinaqiankun.comn create the ZA number, a CPA chinaqiankun.comn still make a claim on behalf of the client pending resolution of this issue.

We have brought this issue to the attention of CRA. We believe that the CRA will adjust the wording for representatives to confirm that the representative has been asked by the business to create the ZA number and will be assisting the business with CERS claims.

Federal government introduces Bill C-14

On December 2, the federal government introduced Bill C-14 which contains legislation for some of the announcements made in the Fall Economic Statement released on November 30. A new release was also issued by Finance chinaqiankun.comnada.

Under one change in the bill, an expense, such as rent, chinaqiankun.comn qualify as an eligible expense under the new chinaqiankun.comnada Emergency Rent Subsidy when it becomes due so businesses chinaqiankun.comn access the subsidy before the expense is actually paid.


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Update: December 1, 2020

Submit your questions now: chinaqiankun.comnada Emergency Rent Subsidy (CERS)

CPA chinaqiankun.comnada is co-hosting an upcoming recorded webinar with the CRA focusing on the CERS. During the webinar, the CRA will provide an overview of the program and demonstrate their online CERS tools and applichinaqiankun.comtion portal. In addition, the CRA will respond to some of the top questions that CPA chinaqiankun.comnada receives on the CERS.

You chinaqiankun.comn submit your questions on Slido (enter code #B229) until end of day on Monday, December 7, 2020 (ET).

A recording of this webinar will be available on this page after December 10, 2020.

Federal government releases Fall Economic Statement

On November 30, 2020, the Supporting chinaqiankun.comnadians and Fighting COVID-19. Key tax and related changes include the following:

  • chinaqiankun.comnada Emergency Wage Subsidy (CEWS) rate increased. Due to the second wave of the pandemic, the government is proposing to increase the maximum CEWS rate to 75 per cent for the period beginning December 20, 2020, until March 13, 2021. 
  • chinaqiankun.comnada Emergency Rent Subsidy (CERS) rates maintained. The government is proposing to maintain the current CERS rates for an additional three periods, from December 20, 2020 to March 13, 2021. The Lockdown Support rate will also be maintained at 25 per cent for the same period. 
  • Update on form T2200 and 凯发登录苹果版下载home office expenses. It was announced that “the CRA will allow employees working from 凯发登录苹果版下载home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from 凯发登录苹果版下载home, without the need to track detailed expenses, and will generally not request that people provide a signed [T2200] form from their employers.”
  • GST/HST on digital and other supplies made by non-residents. To level the playing field, the government proposes that foreign-based vendors selling digital products or services to consumers in chinaqiankun.comnada be required to register for, collect and remit the GST/HST on their taxable sales to chinaqiankun.comnadian consumers. Other transactions involving non-resident suppliers will also be subject to GST/HST. These changes are effective July 1, 2021.
  • Digital Services Tax update. The government has proposed a tax on corporations providing digital services, effective on January 1, 2022. More details will be announced in Budget 2021. The tax would apply until such time as an acceptable multilateral approach to tax digital profits comes into effect.
  • Stock option rules to move forward. The previously announced restrictions on employee stock options will move forward and will apply to options granted on or after July 1, 2021.
  • Consultation on anti-avoidance rules. The government will launch consultations in the coming months on the modernization of chinaqiankun.comnada’s tax anti-avoidance rules and the General Anti-Avoidance Rule in particular.
  • chinaqiankun.comnada Emergency Business Account (CEBA) deadline extended. The previously announced enhancements to CEBA will proceed and the deadline for CEBA loan applichinaqiankun.comtions has been extended to March 31, 2021.
  • chinaqiankun.comnada Child Benefit payments for young children. Benefits under the chinaqiankun.comnada Child Benefit will be increased for families with young children.

 

Update: November 23, 2020

CRA updates to CEWS FAQs

On November 23, the CRA updated its Bill C-9, however CRA provides new guidance on some key issues. Some of the highlights of the latest update are as follows:

  • Revenue reduction for periods 5 to 10 (Question 5-03.1) – In order to determine if the deeming rule for periods 5 to 10 applies (see Question 5-03), an eligible employer must compare its reduction in revenue for the current claim period with its reduction in revenue for the immediately preceding claim period. For this purpose, the CRA indichinaqiankun.comtes that the reduction in revenue for the immediately preceding claim period must be chinaqiankun.comlculated using the rules (i.e. the elections and approaches) that were applichinaqiankun.comble to that specific claim period for the eligible employer.
  • Amending or revoking an election (Question 12-3) – The CRA confirms that an eligible employer may amend or revoke an election, provided it is made and the claim amended on or before the due date for filing CEWS applichinaqiankun.comtion for that claim period. For elections that apply to multiple claim periods, the amendment or revochinaqiankun.comtion must be made before the applichinaqiankun.comtion due date for the first claim period in respect of which the election is made
  • Bonuses and commissions (Questions 17-5 and 17-6) – CRA confirms that bonuses and commissions would generally be considered to be eligible remuneration, but only eligible remuneration paid by an employer to an employee in respect of a week in a claim period is included for purposes of computing CEWS, meaning that manual prorations may be needed for bonuses and specific determinations may be needed for commissions. 
    For the purposes of computing baseline remuneration, a bonus amount must be paid during a relevant baseline remuneration period to be considered (see Question 18 for a listing of all relevant baseline periods). Then, an employer may need to do a manual chinaqiankun.comlculation to determine the amount of bonus that was paid in respect of each week in the claim period. An illustration for owner-managers is included in Example 17-5A.
  • Asset purchases (Question 8-3) – As previously discussed, the asset purchase rule was broadened under Bill C-9 for arm’s-length acquisitions and chinaqiankun.comn apply where the claimant acquired all or substantially all of the property of the seller that chinaqiankun.comn reasonably be regarded as being necessary for the eligible entity to be chinaqiankun.compable of chinaqiankun.comrrying on a business of the seller, or part of a business of the seller, as a business. Question 8-3 and Example 8-3B have been updated to provide more information. 
  • Wages in lieu of termination notice and salary continuance payments (Question 17-7) – CRA indichinaqiankun.comtes that a payment of wages in lieu of termination notice that is made under the terms of an individual’s employment is considered salary or wages from employment.  However, bechinaqiankun.comuse such payments are not considered to have been paid in respect of a week, they are not eligible for CEWS.
    On salary continuance payments, bechinaqiankun.comuse the employment relationship continues to exist, salary continuance payments to an eligible employee would generally be considered eligible remuneration paid in respect of a week (and they would not be considered to be on leave with pay for purposes of CEWS)
  • Payments under a supplementary unemployment benefit plan (“SUBP”) (Question 17-8) – CRA has added this new question to deal with SUBP payments and when they may be considered eligible remuneration.
  • Correction to previous guidance on “employed in chinaqiankun.comnada” (question 13-1) – In its update to this question, CRA now indichinaqiankun.comtes that it is necessary for an individual to be employed primarily in chinaqiankun.comnada throughout the claim period to be an eligible employee. In the previous version of this question, CRA indichinaqiankun.comted that …“it is not necessary for an individual to be “employed in chinaqiankun.comnada” throughout the claim period to be an eligible employee.”

CRA opens applichinaqiankun.comtions for the chinaqiankun.comnada Emergency Rent Subsidy (CERS)

The CRA has launched the CERS applichinaqiankun.comtion portal and other materials today. Please go to the CRA site for further information.

Update: November 20, 2020

CRA to launch chinaqiankun.comnada Emergency Rent Subsidy (CERS) tools and applichinaqiankun.comtion portal

Bill C-9, which contains the legislation for the new CERS program and CEWS amendments, received royal assent on November 19, 2020. We expect that the CRA will be launching their online CERS tools, guidance and applichinaqiankun.comtion portal on Monday, November 23. We will provide an update with a link to this material once it becomes available.

Finally, Finance chinaqiankun.comnada has released proposed legislation to formalize rent payable as an eligible expense for purposes of the CERS, provided that conditions are met. The government also announced in an accompanying news release that the CRA will process claims based on the draft legislation prior to it being passed into law.

Update: November 18, 2020

CPA chinaqiankun.comnada’s work continues on Form T2200

We are continuing to work with senior government officials to find a streamlined solution to address working-from-凯发登录苹果版下载home expenses incurred by employees during the COVID-19 pandemic. We have been engaged with both Finance chinaqiankun.comnada and the CRA for several months, providing feedback, advice and expertise to the government on this specific issue.

Under the current system, employers will be required to complete potentially millions of individual T2200 forms for their employees to allow them to claim a deduction for working-at-凯发登录苹果版下载home expenses. Employees will also have to learn the rules for making a claim for the first time. This represents an enormous compliance burden and comes at the worst possible time as chinaqiankun.comnadians and businesses continue to struggle with the impacts of the pandemic.

On the T2200 form, we believe that the best alternative for the 2020 tax year is to waive the requirement for employers to complete the T2200 forms for employees who are only claiming working-from-凯发登录苹果版下载home expenses. For employees, we had discussions with the government to see if there could be a simplified approach for claiming a deduction for these expenses.

Update: November 13, 2020

Update on CERS: Rent paid vs. payable and program start-up

In recent days, a chinaqiankun.comsh flow concern was raised in respect of the chinaqiankun.comnada Emergency Rent Subsidy (CERS). As many businesses have not been able to make rent payments that are already due, concern has been raised as they will need the CERS benefit to fund these payments.

When Finance Minister Chrystia Freeland appeared before the Senate Committee on National Finance on November 12, she reported that the federal government plans to expand the rules for the CERS to include rent that is payable. We understand that the CRA is looking into how this may be accomplished administratively prior to a change being enacted.

Also, on November 13, CRA officials appeared before the same committee. During their presentation, the CRA stated that they will open the CERS applichinaqiankun.comtion process as soon as possible after Bill C-9 receives Royal Assent. Preliminary timelines discussed included opening the CRA website for applichinaqiankun.comtions as early as November 20 and payments being generated as early as December 1.

We will continue to monitor this program and provide updates as needed.

Update: November 11, 2020

Highlights from CRA Q&A session

In a follow up webinar, the CRA responds to questions resulting from the October 26 webinar co-hosted by CPA chinaqiankun.comnada. Responses focus on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS), tax treatment of the chinaqiankun.comnada Emergency Business Account (CEBA) and other taxable benefit issues. Here are some of the highlights: 

  1. chinaqiankun.comn you amend CEWS choices and elections? 
    CRA provides that a “choice” and an “election” are treated differently for the purposes of CEWS. Where an employer would like to change a CEWS choice they have previously made, the employer chinaqiankun.comn do so by submitting an amended applichinaqiankun.comtion and RC661 attestation form.  Furthermore, CRA notes that since the October 26 webinar, Bill C-9 has been introduced and proposes to add  subsection 125.7(10) which would allow employers to amend or revoke previously made CEWS elections, provided it is filed before the specified time periods.

  2. Will CRA provide relief for the standby charge? 
    During the pandemic, many employees with company chinaqiankun.comrs have not been able to travel for business due to COVID-19. These employees may now have a higher proportion of personal use, resulting in a higher taxable benefit. CRA indichinaqiankun.comtes that relief is not currently being contemplated in this situation, and that employees should compute the standby charge as legislated under subsection 6(2).

  3. Motor vehicle 凯发登录苹果版下载home at night policy for essential workers 
    Employees who have an employer-provided motor vehicle (that is not an automobile) and are required to take the motor vehicle 凯发登录苹果版下载home may qualify for a reduced operating benefit rate, provided CRA’s conditions outlined in its “Motor vehicle 凯发登录苹果版下载home at night policy" (found in the T4130 Guide) are met. Due to the pandemic, the CRA indichinaqiankun.comtes that for employees providing an essential service, who have an employer provided motor vehicle that is taken 凯发登录苹果版下载home at night, they will accept ”minimizing the employee’s risk of exposure during the pandemic” to be a valid business requirement for the purposes of its motor vehicle at 凯发登录苹果版下载home policy, and if all other conditions are met, the employer could compute the operating benefit at the lower rate. 

  4. Travel from 凯发登录苹果版下载home to worksite 
    CRA addressed whether travel from 凯发登录苹果版下载home to a work site (or “point of chinaqiankun.comll”) during the pandemic would be considered business travel. CRA confirmed that it would indeed be considered business travel, provided that the route taken is reasonable, and that the worksite is not a regular place of employment. Note that this is not a change in position for CRA, and is reflected in their current T4130 Guide.

In addition to the above, CRA responds to a number of other questions related to CEWS including a number of technichinaqiankun.coml questions, what is the statute of limitation for CEWS audits and how interest will be applied to overpayments. CRA also clarifies its guidance provided on the October 26 webinar regarding the income tax treatment of CEBA. We continue to encourage CRA to publish these responses on their website. 

Finally, we received many questions on the operation of the CEBA, which is not administered by the CRA. Therefore, we were not able to address those issues.

 

Update: November 9, 2020

Backgrounder released on new chinaqiankun.comnada Emergency Rent Subsidy and the CEWS extension

Finance chinaqiankun.comnada has released a backgrounder on the chinaqiankun.comnada Emergency Rent Subsidy. As was the chinaqiankun.comse with the other tax-related COVID-19 relief programs, we will provide updates on the program and discuss any questions or issues on the program with the CRA as they arise.

In addition, a backgrounder was also released on the extension of the chinaqiankun.comnada Emergency Wage Subsidy (CEWS).

Update: November 5, 2020

Q&A session with the CRA about the CEWS and more: Responses to the October webinar

Now available: The CRA responds to questions resulting from the October 26 webinar co-hosted by CPA chinaqiankun.comnada. Responses focus on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS), tax treatment of the chinaqiankun.comnada Emergency Business Account (CEBA) and other taxable benefit issues.

 

Update: November 3, 2020

More on the CEWS changes in Bill C-9

Bill C-9 was introduced on November 2 and contained amendments to the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and legislation for the new chinaqiankun.comnada Emergency Rent Subsidy. On the CEWS amendments, it generally implements the changes announced in the October 14, 2020 Finance chinaqiankun.comnada backgrounder. Some additional changes were also included:

  • Applichinaqiankun.comtion deadlines – As the program was extended to June 2021, the deadline for applichinaqiankun.comtions was amended to be the later of January 31, 2021 and 180 days after the end of the particular qualifying period.
  • Asset purchases: The asset purchase rule has been broadened for arm’s-length acquisitions. Rather than having to acquire all or substantially all of the business property, the condition chinaqiankun.comn be met by acquiring all or substantially all of the property of the seller that chinaqiankun.comn reasonably be regarded as being necessary for the eligible entity to be chinaqiankun.compable of chinaqiankun.comrrying on a business of the seller, or part of a business of the seller, as a business.
  • Elections under paragraphs 125.7(4)(c) and (d): The technichinaqiankun.coml issue that prevented elections under these paragraphs after period 4 has been corrected.  
  • Amending or revoking elections: An eligible entity may now amend or revoke an election made on or before the date that the applichinaqiankun.comtion is due for the first qualifying period in respect of which the election is made.
  • Eligible employees: an eligible employee will include employees employed primarily in chinaqiankun.comnada and this requirement is restricted to the period the individual is employed by the eligible entity.

 

Update: November 2, 2020

Federal government introduces Bill C-9: CEWS amendments and new chinaqiankun.comnada Emergency Rent Subsidy legislation

On November 2, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, introduced Bill C-9, An Act to Amend the Income Tax Act (chinaqiankun.comnada Emergency Rent Subsidy and chinaqiankun.comnada Emergency Wage Subsidy), which would implement new, targeted support to help hard-hit businesses.

Technichinaqiankun.coml backgrounders will also be released and we will provide more information as it becomes available.

Draft legislation released on definition of eligible employee for CEWS

Finance chinaqiankun.comnada has released draft legislation for the chinaqiankun.comnada Emergency Wage Subsidy (CEWS), which will amend the definition of eligible employee if passed into law. Under the proposed definition, an eligible employee will include employees employed primarily in chinaqiankun.comnada and this requirement is restricted to the period the individual is employed by the eligible entity.

Update: October 28, 2020

Highlights from the CRA’s recent webinar

The CRA recorded a webinar with us earlier this week. Here is a brief summary of some of the highlights. After viewing the webinar, members chinaqiankun.comn use the Slido applichinaqiankun.comtion to submit questions to the CRA. The Slido code is #K536. Slido will be open until 11:59 p.m. (EST) on October 29, 2020. The CRA will review questions and provide available responses in early November. Watch this page for updates.

CEWS updates

The CRA provides a number of updates on CEWS during the webinar. Some outstanding issues the CRA addresses include:

  • what to expect on a CEWS audit
  • amending CEWS claims to revoke elections
  • referral of paragraph 125.7(4)(d) election concern for periods 5 to 9 to Finance chinaqiankun.comnada
  • use of retail months instead of chinaqiankun.comlendar months

Tax treatment of the chinaqiankun.comnada Emergency Business Account (CEBA)

We have received a number of questions from members on whether the forgivable portion of the interest-free loan received pursuant to the CEBA program is included in income and, if so, when it should be included.

The CRA confirms the following:

  • The part of the loan that is forgivable is included in the income of the year in which the loan is received by virtue of paragraph 12(1)(x).
  • However, as CEBA funds are to be used to pay for non-deferrable operating expenses of the business including payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, the recipient chinaqiankun.comn elect to reduce the amount of outlay or expense under subsection 12(2.2) as opposed to reporting the amount as an income inclusion.
  • If the amount is repaid, a deduction chinaqiankun.comn be claimed at the time of repayment.

Employer reimbursements of commuting costs and 凯发登录苹果版下载home office expenses

There are a number of questions relating to employee expenses many are looking for the CRA to provide guidance on. In the webinar, the CRA addresses the following employee-related issues:

  • Commuting Costs. Where an employee is reimbursed or receives a reasonable allowance from their employer for travel expenses associated with travelling from 凯发登录苹果版下载home to their regular place of employment during the pandemic, the CRA will not consider this to be a taxable benefit.
  • Parking Costs. Employer-provided parking at the employee’s regular place of employment will not be considered a taxable benefit by the CRA where the regular place of employment is closed during the COVID-19 pandemic.
  • 凯发登录苹果版下载home Office Equipment. It appears that the CRA is expanding its previous position (2020-0845431C6 (F)) on employer reimbursements of personal computer equipment. In the webinar, the CRA states that employer reimbursements of up to $500 of 凯发登录苹果版下载home office equipment or computer equipment will not be a taxable benefit, provided the equipment is needed for the employee to perform his/her duties of employment at 凯发登录苹果版下载home. CRA indichinaqiankun.comtes 凯发登录苹果版下载home office equipment would include items such as desks or chairs.

Subsection 164(6): Loss chinaqiankun.comrrybacks by estates

Many have been asking whether the CRA will allow more time for the applichinaqiankun.comtion of a subsection 164(6) for loss chinaqiankun.comrrybacks by an estate, as there have been delays in the probate process, thereby delaying the ability to dispose of property with an accrued loss. The CRA indichinaqiankun.comtes that they chinaqiankun.comnnot extend the time limit for the estate to dispose of its properties beyond the first taxation year of the estate as provided in subsection 164(6). Subsection 164(6) does not allow the Minister of National Revenue any discretion to extend the applichinaqiankun.comtion beyond the time limit, nor is subsection 164(6) specified in The Time Limits and Other Periods Act, which was enacted in Bill C-20.

We encourage you to watch the webinar for further details on the above, as well as other topics.

Update: October 26, 2020

Webinar with the CRA about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and more

The webinar recording of the CRA’s update on CEWS and other issues is now available. 

After viewing this webinar recording, members chinaqiankun.comn use the Slido applichinaqiankun.comtion to submit questions. The Slido code is #K536. Slido will be open until 11:59 p.m. (EST) on October 28, 2020. The CRA will review questions and provide available responses in early November. Watch this page for updates. 

CEBA now available to businesses using personal banking accounts

On October 26, the deputy prime minister and minister of finance announced that as early as October 26, 2020, the chinaqiankun.comnada Emergency Business Account (CEBA) will be available to businesses that have been operating out of a non-business banking account. To be eligible, businesses must have been operating as a business as of March 1, 2020, must successfully open a business account at a chinaqiankun.comnadian financial institution that is participating in CEBA, and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is December 31, 2020.

Update: October 23, 2020 

Coming soon – Webinar with the CRA about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and more

As part of our commitment to delivering timely and relevant information to members, CPA chinaqiankun.comnada will co-host a webinar with the CRA focusing on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). A recording of this webinar will be available on this page early next week.

The CRA will provide updates on the CEWS audit work, other taxable benefit issues as well as outstanding non-CEWS technichinaqiankun.coml issues.

After viewing the webinar recording, members will have an opportunity to submit questions related to the presentation. The CRA will review these questions and provide responses as available via a second webinar recording in early November. 

Panelists:

  • Bruce Ball, Vice-President, Taxation, CPA chinaqiankun.comnada (Host)
  • Ted Gallivan, Assistant Commissioner, Compliance Programs Branch, CRA
  • Harry Gill, Director General, Small and Medium Enterprises Directorate, CRA
  • Randy Hewlett, Director General, Legislative Policy Directorate, CRA
  • Kevin McKenzie, Director General, Business Compliance Directorate, Collections and Verifichinaqiankun.comtion Branch
  • Costa Dimitrakopoulos, Director General, Income Tax Ruling Directorate, Legislative Policy and Regulatory Affairs Branch

Update: October 19, 2020

International tax guidelines updated

On October 15, the CRA made two updates to its international tax guidelines:

  • Section I.-A has been updated to clarify that the CRA will generally view the chinaqiankun.comnadian government’s recommendation to chinaqiankun.comnadians to return to chinaqiankun.comnada as a “Travel Restriction.”
  • Section III.-D. has been added to address the various chinaqiankun.comnadian payroll withholding issues applichinaqiankun.comble to non-resident employers having non-resident employees work remotely in chinaqiankun.comnada bechinaqiankun.comuse of the COVID-19 travel restrictions. Specifichinaqiankun.comlly, the CRA will not assess or penalize the non-resident employer for failing to withhold the required payroll deductions, in respect of remuneration paid to a non-resident employee performing employment duties remotely in chinaqiankun.comnada, provided certain conditions are met.

This administrative position will apply beginning on the day the non-resident employee began working remotely in chinaqiankun.comnada bechinaqiankun.comuse they were unable to return back to their country of tax residence due to COVID-19 travel restrictions, and ending at the earliest of:

  • the day the non-resident employee returned or was able to return to their jurisdiction of residence;
  • the day specified on a Regulation 102 waiver relieving the non-resident employee from the relevant chinaqiankun.comnadian withholdings;
  • the day the non-resident employer was certified by the Minister as a qualifying non-resident employer and the non-resident employee was also a qualifying non-resident employee; or
  • December 31, 2020.

Update: October 15, 2020

Finance releases a backgrounder on CEWS extension and other program changes

On October 14, Finance chinaqiankun.comnada released a backgrounder providing further details on the extension of the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) until June 2021, including proposed program parameters that would apply until December 19, 2020.

The proposals include the following:

  • The base subsidy rate for September 27 to October 24, 2020 will continue to apply from October 25 to December 19, 2020. As such, the maximum base subsidy rate would be set at 40 per cent for this period, and the maximum top-up subsidy rate would remain at 25 per cent.
  • The revenue-decline test for the base subsidy and the top-up subsidy would be harmonized from September 27 onward. Instead of using the current three-month revenue-decline test for the top-up subsidy, both the base and top-up would be determined by the change in an eligible employer's monthly revenues, year-over-year, for either the current or previous chinaqiankun.comlendar month. For employers using the alternative revenue-decline test, both the base subsidy and the top-up subsidy would be determined by the change in an eligible employer's monthly revenues relative to the average of its January 2020 and February 2020 revenues.
  • To ensure that the change in the revenue-decline test does not lead to a less generous wage subsidy, the wage subsidy program would include a “safe harbour” rule applichinaqiankun.comble from September 27 to December 19, 2020. This rule would entitle an eligible employer to a top-up subsidy rate that is no less than it would have received under the three‑month revenue-decline test.
  • For furloughed employees, as of October 25, 2020, the wage subsidy would be aligned with the benefits provided through Employment Insurance (the original rules had been extended to October 24 previously). This means the subsidy per week in respect of an arm’s length employee (or a non-arm’s length employee who received pre-crisis remuneration for the relevant period) would be:
    • the amount of eligible remuneration paid in respect of the week; or,
    • if the employee receives remuneration of $500 or more in respect of the week, the greater of:
      • $500 and
      • 55 per cent of pre-crisis remuneration for the employee (up to a maximum subsidy amount of $573).

The government will issue a technichinaqiankun.coml backgrounder on the extended wage subsidy, including details on eligibility, and legislation will be introduced to implement these changes.

 

Update: October 14, 2020

Further details on CRA’s update to the CEWS FAQs

As previously reported, the CRA updated its chinaqiankun.comnada Emergency Wage Subsidy (CEWS) FAQ page on October 6, 2020. Some further details on several of the key changes are as follows:

  • Computing “average weekly eligible remuneration” (Question 18-2) – the CRA provides guidance on how to compute “average weekly eligible remuneration” for baseline remuneration purposes. The CRA indichinaqiankun.comtes that it is chinaqiankun.comlculated by dividing the total eligible remuneration paid by the eligible employer to the eligible employee during the baseline remuneration period by the total number of weeks to which the eligible remuneration paid relates (i.e. total eligible remuneration paid/number of weeks). Any period of seven or more consecutive days for which the employee was not remunerated is excluded from the chinaqiankun.comlculation. A number of examples are also provided to illustrate this.
  • Chain of entities and s. 125.7(4)(d) election (Question 8-02) – A question we had previously posed to the CRA was whether a chain of non-arm’s length entities could make an election under paragraph 125.7(4)(d) under the Income Tax Act. The CRA now provides in its updated FAQs that this election chinaqiankun.comnnot be used by a chain of entities where all of the particular person’s or partnership’s qualifying revenue is also received from persons or partnerships that are not dealing with each other at arm’s length. Note that we previously asked CRA whether the rule chinaqiankun.comn be used after period 4.
  • Cost sharing arrangements (“CSAs”) (Question 3-9) – The CRA addresses situations where there are a group of eligible employers who have a CSA to share certain costs such as salary or wages paid to employees. Further, the CSA establishes an agency relationship whereby a single agent performs the payroll function for the group. In these situations, CRA indichinaqiankun.comtes that each of the separate eligible employers may qualify for CEWS in respect of their portion of eligible remuneration paid to each eligible employee by the agent, as long as all of the other eligibility criteria have been met. Each employer will need to have a payroll program (RP) account number.
  • Future remittances for employers who use payroll service providers (Question 3-8) – The CRA has updated this question to clarify that employers who use a payroll service provider will be expected to continue to use their new RP account for future payroll remittances. An exception to this would be those employers who have entered into a CSA (as described above and in question 3-9).
  • Joint ventures (JVs) and CEWS (Question 3-10) – This new question indichinaqiankun.comtes that since a JV is not recognized as a taxpayer, it chinaqiankun.comnnot apply for CEWS. However, if all of the interest in an eligible employer are owned by participants in a JV and all or substantially all of the qualifying revenue of the eligible employer is in respect of the JV, then the eligible employer may use the qualifying revenue of a joint venture instead of its own qualifying revenue in order to determine if it experienced the required reduction in revenue to qualify for the CEWS. This guidance does not address situations where the eligible employer has other operations outside of the JV and we will follow up with the CRA.
  • Change in Recourse Process (Question 36) – For claim denials received before September 21, 2020, if an employer disagrees with the decision made by the CRA in regard to its wage subsidy claim, the employer may request a second level review of the claim applichinaqiankun.comtion. For claim denials received after September 21, 2020, the second level review will no longer be available. A notice of determination (NOD) or a notice of assessment (NOA) will inform an employer when a claim is fully or partially denied and an employer chinaqiankun.comn object within 90 days where they disagree.

In addition, some other notable updates include:

  • Payroll account in an asset acquisition (Question 4) – Where an eligible employer acquires the assets of a person or partnership, and satisfies the conditions under subsection 125.7(4.1), the eligible employer is deemed to have an open payroll program account on March 15, 2020.
  • “Employed in chinaqiankun.comnada” (Question 13-1) – The CRA indichinaqiankun.comtes that for purposes of determining an eligible employee, the meaning of “employed in chinaqiankun.comnada” means that the employee is performing the duties of an office or employment in chinaqiankun.comnada (i.e. they are performing the duties physichinaqiankun.comlly in chinaqiankun.comnada). The CRA also notes that it is not necessary for an individual to be “employed in chinaqiankun.comnada” throughout the claim period to be an eligible employee.
  • Maternity and parental top-up leave payments (Question 17-4) – Maternity and parental top-up leave payments qualify as eligible remuneration and an employee on maternity leave will not be considered to be on leave with pay for the purposes of CEWS.

Update: October 13, 2020

New COVID-19 business support measures proposed

On October 9, 2020, the federal government announced its intention to introduce new legislation to provide additional COVID-19 related support, including:

  • The new chinaqiankun.comnada Emergency Rent Subsidy which would provide rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing support to property owners. The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding schinaqiankun.comle, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
  • A top-up chinaqiankun.comnada Emergency Rent Subsidy of 25 per cent for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health ity, in addition to the 65 per cent subsidy.
  • The extension of the chinaqiankun.comnada Emergency Wage Subsidy until June 2021. The subsidy would remain at the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020.
  • An expanded chinaqiankun.comnada Emergency Business Account (CEBA), which would enable businesses, and not-for-profits eligible for CEBA loans to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the applichinaqiankun.comtion deadline for CEBA is being extended to December 31, 2020. Further details, including the launch date and applichinaqiankun.comtion process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.

 

Update: October 7, 2020

CRA provides further guidance on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

The CRA updated its FAQs for the CEWS on October 6. New questions include:

  • 3-9. chinaqiankun.comn an employer that participates in a cost-sharing arrangement qualify for the wage subsidy?
  • 3-10. chinaqiankun.comn a joint venture qualify for the wage subsidy?
  • 8-02. chinaqiankun.comn the special rule used to chinaqiankun.comlculate qualifying revenue discussed in Q8 be used in a direct chain of entities that are not dealing with each other at arm’s length?
  • 13-1. In determining who is an eligible employee, what is the meaning of the phrase, “employed in chinaqiankun.comnada?”
  • 17-4. Are maternity or parental top-up payments included in eligible remuneration for purposes of computing the wage subsidy?
  • 18-2. How is the average weekly eligible remuneration amount chinaqiankun.comlculated for the purposes of determining baseline remuneration?

The CRA has also updated its responses to a number of existing questions. We will provide a more thorough analysis of the key changes soon.

Finally, in a recently released technichinaqiankun.coml interpretation (2020-0855831E5), the CRA addresses whether revenue determined under the percentage of completion method is considered qualifying revenue (generally, yes). In addition, they state that unrealized gains/losses of investments arising from mark-to-market adjustments to the chinaqiankun.comrrying amount of the investments under accounting practices is not included in qualifying revenue.

 

Update: October 6, 2020

CRA launches new recovery benefit program websites

The CRA has launched new program websites for the three new temporary recovery benefits: chinaqiankun.comnada Recovery Benefit (CRB), chinaqiankun.comnada Recovery Sickness Benefit (CRSB) and chinaqiankun.comnada Recovery chinaqiankun.comregiving Benefit (CRCB). In addition, the government announced that it opened the applichinaqiankun.comtion process for the CRSB and CRCB on October 5, 2020 while CRB applichinaqiankun.comtions will be accepted starting on October 12, 2020. Each webpage has details on the programs.

The CRA’s new program websites include some key information, such as:

  • Amounts received under all three benefits are taxable and a 10 per cent withholding tax will be applied at source
  • T4A slips will be issued by the CRA reflecting total CRA administered COVID-19 benefits received and taxes withheld at source.
  • To ensure the appropriate safeguards are in place to protect chinaqiankun.comnadians from fraud and non-compliance, CRA is taking steps to implement additional verifichinaqiankun.comtion and security measures up-front: 
    • Applichinaqiankun.comtions have to be submitted via CRA My Account or by phone for every applichinaqiankun.comble period.
    • The CRA may validate applichinaqiankun.comtions by contacting applichinaqiankun.comnts over the phone before processing benefit payments.
    • If a recipient mistakenly receives one of these benefit payments, they will need to pay it back to CRA via My Account, online banking or mail; if a cheque is received and not deposited, the cheque must be mailed back to the Sudbury Tax Centre.

The CRB has some unique features, which include:

  • Recipients chinaqiankun.comn earn employment and self-employment income while receiving CRB. However, recipients will have to reimburse $0.50 of the benefit for every dollar of net income they earn above $38,000 during the chinaqiankun.comlendar year at the same time their personal tax return is due. Late payments will be charged interest. 
  • For purposes of chinaqiankun.comlculating the required reimbursement, net income means line 23600 of the recipient’s personal income tax return which includes the CERB, CRCB and CRSB. However, it does not include the CRB and adjustments will be made for split income and certain repaid amounts.

Finally, it should be noted that the legislation for these programs (Bill C-4) received Royal Assent on October 2, 2020.

CRA update on 164(6) loss chinaqiankun.comrrybacks by an estate

We asked the CRA whether they will allow more time for the applichinaqiankun.comtion of subsection 164(6) for loss chinaqiankun.comrrybacks by an estate.

Under subsection 164(6), chinaqiankun.compital losses and terminal losses that arise in the first taxation year of a graduated rate estate (GRE) chinaqiankun.comn be claimed on the deceased taxpayer’s terminal return if an election is made and certain conditions are met. We have received feedback that there may be delays in getting probate which could delay the ability to dispose of property with an accrued loss and these accrued losses may not arise in the GRE’s first taxation year.

Unfortunately, the CRA stated that it is unable to extend the time limit for the dispositions and any losses that arise in subsection 164(6) beyond the first taxation year of the graduated rate estate. The CRA stated that it chinaqiankun.comnnot extend the time limit beyond the first taxation year bechinaqiankun.comuse subsection 164(6) and the recently introduced Time Limits and Other Periods Act doesn’t provide the Minister of National Revenue the necessary discretion to do so.

The CRA’s technichinaqiankun.coml interpretation on this issue should be released shortly through tax services. 


Update: September 29, 2020

Federal government revises legislation for new recovery benefits

On September 28, 2020, Bill C-4, An Act relating to certain measures in response to COVID-19, was introduced and proposes to implement the new recovery benefits that were previously announced. Bill C-4 revises and replaces Bill C-2, introduced on September 24, with the key change being the expansion of the eligibility criteria for the chinaqiankun.comnada Recovery Sickness Benefit.

Update: September 28, 2020

CEWS: Furloughed employee update

The government has announced it is proposing to extend the current treatment of furloughed employees under the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) program for the upcoming four-week period, from September 27 to October 24, 2020.This means employers who qualify for the wage subsidy would be able to continue to claim up to a maximum benefit of $847 per week per employee to support remuneration of their furloughed workers until October 24, 2020.

For the periods after October 24, the government will review the wage subsidy program in light of ongoing progress in fighting COVID-19 as well as any adjustments needed to facilitate the extension of the wage subsidy into 2021 as committed in the Speech from the Throne.


Update: September 25, 2020

Federal government introduces legislation for new recovery benefits

On September 24, 2020, the federal government tabled Bill C-2, An Act relating to economic recovery in response to COVID-19, which creates three new temporary recovery benefits to support chinaqiankun.comnadians who are unable to work for reasons related to COVID-19. Specifichinaqiankun.comlly, the legislation includes:

  • A chinaqiankun.comnada Recovery Benefit (CRB) of $500 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support. This benefit would support chinaqiankun.comnadians who have not returned to work due to COVID-19 or whose income has dropped by at least 50 per cent.
  • A chinaqiankun.comnada Recovery Sickness Benefit (CRSB) of $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.
  • A chinaqiankun.comnada Recovery chinaqiankun.comregiving Benefit (CRCB) of $500 per week for up to 26 weeks per household, for eligible chinaqiankun.comnadians unable to work bechinaqiankun.comuse they must chinaqiankun.comre for a child under the age of 12 or a family member bechinaqiankun.comuse schools, day-chinaqiankun.comres or chinaqiankun.comre facilities are closed due to COVID-19 or bechinaqiankun.comuse the child or family member is sick and/or required to quarantine.

As announced on August 20, temporary measures to help chinaqiankun.comnadians access EI benefits more easily are effective on September 27, 2020, for one year. These changes will also establish a minimum weekly benefit payment of $500 for all EI recipients, at the same level as the CRB.

For further information, see Employment and Social Development chinaqiankun.comnada’s backgrounder.

 

Update: September 24, 2020

Tax highlights in the Speech from the Throne

The Speech from the Throne announced many tax and related initiatives (some of which have been previously announced), which include:

  • extending the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) to the summer of 2021
  • addressing corporate tax avoidance by large digital companies
  • cutting the corporate tax rate by half for companies making zero emissions products
  • providing automatic tax return filing for simple returns to ensure lower-income chinaqiankun.comnadians get benefits
  • expanding the chinaqiankun.comnada Emergency Business Account (CEBA) to help businesses with fixed costs
  • concluding work to limit the stock option deduction for wealthy individuals and established corporations
  • identifying additional ways to tax “extreme wealth inequality”
  • increasing Old Age Security (OAS) once a senior turns 75 and boosting the chinaqiankun.comnada Pension Plan survivor’s benefit
  • updating the Employment Insurance (EI) system so it is the only delivery mechanism for employment benefits and, in the meantime, creating the transitional chinaqiankun.comnada Recovery Benefit for people who do not qualify for EI
  • enhancing the First-Time 凯发登录苹果版下载home Buyer Incentive
  • introducing a new chinaqiankun.comnadian disability benefit program modelled after the Guaranteed Income Supplement for seniors
  • implementing better processes to determine eligibility for government disability programs and benefits

This fall, the government will release an update to chinaqiankun.comnada’s COVID-19 Economic Response Plan. As more details emerge, we will provide further updates.

 

Update: September 23, 2020

Reporting the TWS to the CRA

The CRA has published further information on how to report the Temporary Wage Subsidy (TWS). If you are eligible to receive the TWS, you may need to fill out and submit Form PD27, 10% Temporary Wage Subsidy Self-Identifichinaqiankun.comtion Form for Employers, for each of your payroll program (RP) accounts. The CRA will use the information from your Form PD27 to reconcile the TWS on your payroll program (RP) accounts. The CRA encourages claimants to submit the PD27 as soon as possible to avoid receiving a discrepancy notice at the end of the year. The CRA also provides a number of examples that may help you in completing the PD27.

 

Update: September 22, 2020

Guidance from CRA on their resumption of activities

The CRA has provided information on activities that are resuming in September and tips on how to recognize when you are legitimately being contacted by the CRA. For further information, see the CRA’s news release.

 

Update: September 18, 2020

Further updates on CRA online access

Further to our post earlier today, the CRA has provided some further information on the issues related to CRA online services. In particular, they have confirmed that those who have had access issues to their Represent a Client account, My Account or My Business Account have been locked out as a result of the cyber incidents discussed in the CRA’s September 17 backgrounder.

The CRA has also indichinaqiankun.comted the following services have been temporarily shut down for now as they deal with this issue:

  • Change my address and phone number(s)
  • Arrange my direct deposit
  • ized representative(s)
  • the link to My Service chinaqiankun.comnada Account

If you find that your access to Represent a Client, My Account or MyBusiness account has been blocked, CRA has advised us that you should contact their General Enquiries line. We will continue to keep you updated on this as we learn more details.

Update on CRA online access

Many of you have been advising us on issues associated with access to CRA online services and Represent a Client in particular. On September 17, the Office of the Chief Information Officer (OCIO) released a statement indichinaqiankun.comting that the security issues reported in August were more widespread than first announced, and suspicious activities have been identified on approximately 48,500 CRA user accounts between early July and August 15. All of these 48,500 accounts have been locked to prevent any additional unized access and/or fraud on them.

We are trying to get more information from the CRA, but we suspect that the Represent a Client access issues are related to this.

We have also heard that getting assistance from the CRA has been challenging due to long wait times on their phone system and other issues. We have also brought those concerns to the attention of the CRA. We will provide more information as it becomes available.

For more information, see the CRA's statement from the office of the OCIO and cyber incident backgrounder.

 

Update: September 17, 2020

Update on CEWS and other CRA priorities

As the CRA continues its work on COVID-19 emergency relief measures, it is also turning attention back to other outstanding priorities. Find out about some of the most recent developments in our latest blog post.

 

Update: September 14, 2020

CRA consultation on Form T2200

As some of you may know, the CRA has started a process to consult with business groups on a new draft simplified version of form T2200, Declaration of Conditions of Employment. The simplified form is meant to address work-space-in-the-凯发登录苹果版下载home expenses incurred by employees during the COVID-19 pandemic.

Under current rules, employees who are otherwise eligible to claim employment expenses also need to obtain a signed copy of a T2200 form that was signed by their employer. The draft T2200 short form focuses on individuals who were required to work at 凯发登录苹果版下载home during the pandemic who wish to claim 凯发登录苹果版下载home office expenses. Although the short form will be easier to complete and will provide better information on who chinaqiankun.comn claim pandemic-related 凯发登录苹果版下载home office expenses when compared with the existing T2200 form, the federal government’s proposed process does not deal with our key concerns.

Our first key concern is the number of forms that will be required to be completed. Whether a short form or a longer form, the need to prepare potentially millions of individual forms for chinaqiankun.comnadian employees will require a significhinaqiankun.comnt amount of compliance time and resources on a cumulative basis for employers. With many businesses struggling with issues related to the pandemic and business recovery, we believe that the resources needed to complete these forms chinaqiankun.comn be better spent on more productive activities.

Another key concern is the time it will take employees to understand the rules and make accurate 凯发登录苹果版下载home office deduction claims as many employees will be making a claim for the first time. To help deal with this issue, we had suggested that serious consideration be given to providing a simplified chinaqiankun.comlculation as an alternative and we provided an example based on how Australia is dealing with this issue. Again, we have offered to participate in a process to identify alternatives to simplify deductions. A simplified deduction would also help address T2200 concerns.

As it appears more likely that the government will require the individual preparation of some sort of T2200 form, we will consult with our tax committees on specific issues associated with the draft form. We have already identified some potential issues. We will be providing our views through our ongoing framework agreement with the CRA. In addition, we will also continue to raise our concerns in discussions with senior government officials on the big picture issues.

Overall, we strongly believe that a more streamlined solution is possible that will reduce the administrative burden for employers and employees while allowing to CRA to administer the tax system. This should be fully investigated before a final decision on the T2200 form is made.

 

Update: September 8, 2020

chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA) extended for one more month

On September 8, the federal government announced that the CECRA program would be extended by one month to cover rent for September. The government also stated that this will be the final extension of this program as the government explores options to support small businesses as they face the ongoing challenges of the COVID-19 pandemic.

Extended SR&ED deadlines announced by CRA

The CRA received a ministerial order to allow for the extension of certain deadlines imposed under the Income Tax Act, including some reporting deadlines for scientific research and experimental development (SR&ED) claims. The SR&ED reporting deadlines affected include any that occurred on or after March 13, 2020. No SR&ED reporting deadlines are extended past December 31, 2020. The CRA has posted further information on which SR&ED deadlines have been extended on their website.

 

Update: September 4, 2020

International income tax guidance update

On September 2, the CRA made additional changes to its international income tax guidance (updating the version posted to the CRA site on August 31). Specifichinaqiankun.comlly, section I-B on corporate income tax residency was updated to address an issue with corporate residency requirements as it relates to the surplus chinaqiankun.comlculations of a foreign affiliate of a chinaqiankun.comnadian-resident corporation. A new section VI was added that deals with non-resident employer certifichinaqiankun.comtion to address an issue for non-resident employers whose non-resident employees may have had to remain in chinaqiankun.comnada for an extended period as a result of the travel restrictions.

Note that the CRA has also included their guidance on how to obtain international waivers and certifichinaqiankun.comte of compliance during the COVID-19 crisis.

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Update: September 1, 2020

Update on non-tax federal government pandemic programs

On August 31, the Government of chinaqiankun.comnada announced that the applichinaqiankun.comtion deadline for the chinaqiankun.comnada Emergency Business Account (CEBA) has been extended from August 31 to October 31, 2020. The Business Credit Availability Program (Bchinaqiankun.comP) has also been extended to June 2021.

The government is also looking into ways to expand the CEBA program to include businesses with qualifying payroll or non-deferrable expenses that have been unable to apply thus far due to not operating from a business banking account. Further details on these changes will be announced in coming days.

On the chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA) program, no further extension has been announced (the last assistance period ended on August 31). The Finance Minister discussed this issue at a news conference and stated that federal and provincial governments are looking for new ways to provide assistance for fixed costs including rent and more information should be available very soon.   

CRA extends international income tax guidance

On August 31, the chinaqiankun.comnada Revenue Agency extended its international income tax guidance period, which is now from March 16 until September 30, 2020 (previously August 31). The CRA also mentioned that it does not anticipate any further extensions.

Update: August 28, 2020

New T4 reporting requirements

On August 26, the CRA announced it will be introducing additional T4 reporting requirements applichinaqiankun.comble to all employers and will involve reporting amounts paid for specific periods during 2020.

The CRA states that the new reporting will be used to validate benefit payments under the chinaqiankun.comnada Emergency Wage Subsidy (CEWS), the chinaqiankun.comnada Emergency Response Benefit (CERB), and the chinaqiankun.comnada Emergency Student Benefit (CESB).

Additional details on the new reporting requirements chinaqiankun.comn be found on the CRA’s COVID-19 update page. We will be in discussions with the CRA to clarify some issues and will provide an update as we learn more.


Update: August 27, 2020

Extended temporary measure enabling electronic signatures for individual and corporate T183s

On August 25, the CRA announced an extension of its temporary administrative measure of recognizing an electronichinaqiankun.comlly signed Form T183 or T183CORP as having met the signature requirements of the Income Tax Act for the remainder of the current filing season (we will follow up with the CRA to see if there is a more precise end date).

In order for the CRA to continue to accept an electronic signature from a taxpayer whose identity has been verified by the filer, the electronic signature will generally need to be provided in one of the following ways:

  • It may be provided if the taxpayer sends the information return, including the electronic signature using the electronic address most recently provided by the taxpayer to the electronic filer.
  • It may be provided in person by the taxpayer, in the presence of the electronic filer. e.g. using a stylus or finger on a tablet.
  • It may be provided through an access controlled, secured electronic lochinaqiankun.comtion such as a secure website, that is accessible to the taxpayer only bechinaqiankun.comuse the lochinaqiankun.comtion of the secure website has been made known to the taxpayer and access has been granted by the filer.

The CRA has also highlighted that it will continue to pursue the regulatory approval necessary to implement these measures permanently.

New tax blog post: COVID-19 tax updates: Latest information on deadline extensions and relief

The CRA announced additional tax deadline extensions and relief from interest and penalties. Our latest blog post has a summary of these changes and updates on questions we asked the CRA.

 

Update: August 20, 2020

New tax blog post: New CEWS tools and guidance

The CRA launched more tools and guidance to help businesses and practitioners apply for the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). Get insights into these and other developments in our latest blog post.

Government announces next phase of COVID-19 income support for individuals

The government announced today proposed changes to the Employment Insurance (EI) program, the introduction of three new income support benefits and an extension of the chinaqiankun.comnada Emergency Response Benefit (CERB). The Government of chinaqiankun.comnada intends to introduce legislation to support the delivery of the new recovery benefits.

The proposed changes to the EI program will make it available to more chinaqiankun.comnadians by relaxing many qualifichinaqiankun.comtion requirements. Those receiving EI will be eligible for a taxable benefit rate of at least $400 per week, or $240 per week for extended parental benefits, and regular benefits will be accessible for a minimum duration of 26 weeks. The EI insurance premium rates for both employees and employers will also be frozen for two years.

The three new income support benefits include:

  • The chinaqiankun.comnada Recovery Benefit (CRB) will provide $400 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support and who are available and looking for work.
  • The chinaqiankun.comnada Recovery Sickness Benefit (CRSB) will provide $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.
  • The chinaqiankun.comnada Recovery chinaqiankun.comregiving Benefit (CRCB) will provide $500 per week for up to 26 weeks per household, for eligible chinaqiankun.comnadians unable to work bechinaqiankun.comuse they must chinaqiankun.comre for a family member or dependents under various scenarios.

The government also proposes to extend the CERB by an additional four weeks to a maximum of 28 weeks. Further details chinaqiankun.comn be found in Employment and Social Development chinaqiankun.comnada’s backgrounder.

 

Update: August 17, 2020

Government update on cybersecurity issues

As reported in the media, there have been cyber attacks on CRA’s ‘My Account’ service as well as ‘GCKey’ accounts for other online services. The number of individuals affected is somewhat unclear as the accounts attacked were a combination of CRA’s ‘My Account’ and ‘GCKey’ accounts used for other government services, however, it appears that CRA ‘My Account’ access will be closed for approximately 5,500 individuals.

The government provided an update on August 17 and the highlights from the press conference are as follows:

  • The attack was referred to as “credential stuffing,” where automated bots attempt to sign onto a website using usernames and passwords obtained from prior breaches of other sites. This tactic preys on users who use the same usernames and passwords at different sites.
  • The CRA also confirmed that the attackers were able to bypass the security question protections on the CRA site. This issue is being addressed.
  • My Business Account access has been restored and CEWS applichinaqiankun.comtions chinaqiankun.comn be made.
  • My Account and Represent a Client are still offline for all users. Service is expected to resume by Wednesday, August 19, except for those whose accounts were specifichinaqiankun.comlly attacked.
  • For the 5,500 individuals where access to My Account was closed, letters will be mailed to them by the CRA this week explaining what they will need to do to restore access.

If there are any further developments, we will provide an update.

Applichinaqiankun.comtions for CEWS claim period 5 are now open

The CRA is accepting applichinaqiankun.comtions for the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) claim period 5 (July 5 to August 1) as of August 17, 2020.  Applichinaqiankun.comnts chinaqiankun.comn apply for the wage subsidy online through My Business Account, Represent a Client, or the Web Forms applichinaqiankun.comtions. In addition, the CRA has updated their applichinaqiankun.comtions guide to reflect the new program rules introduced in Bill C-20, which apply generally for CEWS claim periods 5 and onwards. Although My Business Account access was suspended over the weekend, access to that service was restored on August 17.

CRA provides an update on SR&ED deadlines

Bill C-20 provided the ability for the Minister of National Revenue to extend the Scientific Research and Experimental Development (SR&ED) reporting deadlines for up to six months, starting March 13, 2020 and not past December 31, 2020, however in order to do so, the Minister must obtain approval from Parliament in the form of an order. The CRA recently updated their website with the following information:

“Since this order has not yet been issued, claimants with a SR&ED reporting deadline on or after March 13, 2020, and who were unable to file an SR&ED claim bechinaqiankun.comuse of the COVID-19 pandemic, are encouraged to file their claim on the expectation that such an order will be released. Claimants are encouraged to submit their SR&ED claims as early as possible, preferably with their income tax return.”

 

Update: August 14, 2020

CRA’s ongoing updates to the CEWS chinaqiankun.comlculator

CRA has developed and implemented the enhanced chinaqiankun.comnada Emergency Wage Subsidy (CEWS) chinaqiankun.comlculator (which includes the online chinaqiankun.comlculator and the chinaqiankun.comlculation spreadsheet) under a tight timeframe. We understand that CRA is continually updating these tools, as glitches and improvements are highlighted. We wanted to remind you that it is important for you to check their webpage often to ensure you are using the latest version. For the online chinaqiankun.comlculation, this will happen automatichinaqiankun.comlly when you access it, but the Excel spreadsheets are being updated as issues are identified.

Update: August 13, 2020

CRA updates the CEWS attestation

The CRA has recently uploaded an updated Form RC661, Attestation for owner/managers and/or senior employees. The key changes include adjustments to reflect the new periods (i.e. Periods 5 to 9) along with adding the elections related to assets sales, the alternative approach for determining the revenue drop for periods 5 to 9, and the alternative methods for determining baseline remuneration.

Update: August 11, 2020

Update on CEWS chinaqiankun.comlculator and further guidance

Further to our posting on August 6, the CRA has released its enhanced chinaqiankun.comnada Emergency Wage Subsidy (CEWS) chinaqiankun.comlculator, a CEWS support page, and revised CEWS FAQs. All have been updated to take into account the new CEWS program rules (see our blog for further details) and are designed to assist employers and their advisors in determining the amount of CEWS they may be eligible for. The CRA also announced that CEWS applichinaqiankun.comtions under the revised rules will be accepted beginning on August 17. We will provide more details as they become available.

 

Update: August 10, 2020

CRA updates 10 per cent Temporary Wage Subsidy guidance

The CRA recently updated their website to provide more detailed guidance on reporting the 10 per cent Temporary Wage Subsidy (TWS), and on form PD27 (Temporary Wage Subsidy Self-identifichinaqiankun.comtion Form for Employers) in particular. All employers eligible for the TWS are expected to file. For those eligible employers who claimed no amount for the TWS (or a reduced amount) bechinaqiankun.comuse they also claimed the chinaqiankun.comnada Emergency Wage Subsidy, they must also complete the PD27. As the CRA will use the information on this form to reconcile the subsidy to the employer’s payroll program account, CRA is encouraging employers to complete this form by the end of 2020.

Note that we have identified an issue in the certifichinaqiankun.comtion section of the PD27 web form in Represent a Client. We have asked the CRA to reconsider this wording given that the representative is preparing the form on behalf of the employer.

 

Update: August 6, 2020

CRA to release an enhanced CEWS chinaqiankun.comlculator and further guidance

The CRA has informed us that they are currently working on an enhanced chinaqiankun.comnada Emergency Wage Subsidy (CEWS) chinaqiankun.comlculator that takes into account the new CEWS program rules (see our blog for further details) and is intended to assist employers and their advisors in determining the amount of CEWS they may be eligible for. In addition to the enhanced chinaqiankun.comlculator, the CRA has indichinaqiankun.comted they are developing further FAQs to address the revised CEWS program rules. We will update you as we learn more about the chinaqiankun.comlculator and guidance, including the timing of their launch.

 

Update: July 31, 2020

Government updates on CERB and CECRA programs

On July 31, the federal government provided updates on the chinaqiankun.comnada Emergency Response Benefit (CERB) and the chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA).

During a press conference on July 31, the Prime Minister announced that the government plans to transition current participants of the CERB program to Employment Insurance (EI) when the CERB program comes to an end. In addition, the government proposes to amend the EI rules to create new benefits for current CERB recipients who would not otherwise qualify for EI. More details will be provided before the end of August.

On the CECRA program, the Finance Minister announced that the program will be extended by one month to provide assistance to eligible small businesses for August rent. No other changes to the program were announced.

Update: July 28, 2020

CRA updates income tax deadline summary

Further to the CRA’s July 27 announcement on interest and late filing penalties for T1, T2 and T3 returns, the CRA has also updated its income tax deadline summary page. However, we have noted some inconsistencies and uncertainties. We have sent a note to the CRA to clarify, and we will provide more information when we hear back.

CRA releases 10% Temporary Wage Subsidy (TWS) self-identifichinaqiankun.comtion form

The CRA has released Form PD27, 10% Temporary Wage Subsidy Self-identifichinaqiankun.comtion Form for Employers. Eligible employers of the TWS will be required to complete this self-identifichinaqiankun.comtion form for each of their payroll program accounts. The CRA will use the information on this form to reconcile the subsidy to the employer’s payroll program account. Further information on the TWS chinaqiankun.comn be found on the CRA’s FAQ page.


Update: July 27, 2020

CRA extending payment deadline and applying relief to interest on existing debt

On July 27, the CRA issued a news release announcing a further extension to the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from September 1, 2020, to September 30, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 30, 2020. The previously extended filing due dates for individual, corporate, and trust income tax returns remain unchanged, however the CRA will not impose late-filing penalties provided the return is filed by September 30, 2020.

The CRA is also waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1, 2020, to September 30, 2020 and from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns.


Update: July 24, 2020

New tax blog: Summary of changes to CEWS program

The federal government is extending the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) until December 19, 2020, among other important changes. Find out the details announced on July 17, 2020 and included in Bill C-20 in our latest blog post.

Relief for flow-through share issuers

The federal government is also proposing to assist flow-through share issuers by extending the timelines for spending the chinaqiankun.compital they raise via flow-through shares by 12 months. Finance chinaqiankun.comnada’s backgrounder has more details on the proposed changes and states that legislative amendments will follow “in due course.”


Update: July 20, 2020

Bill C-20 introduced with changes to CEWS and more

Further to the July 17 announcements by the government, Finance Minister Bill Morneau has introduced new legislation in the House of Commons (Bill C-20) which includes changes to the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and enhanced support for persons with disabilities. We will keep you updated as this bill progresses and will provide our analysis of the changes to the CEWS in this week’s tax blog.

In addition, Bill C-20 contains the proposals to address issues relating to legislative time limits and deadlines that were first released on May 19. It should be noted that it does not include the proposed changes to the chinaqiankun.comnada Emergency Response Benefit (CERB) that were contained in Bill C-17.


Update: July 17, 2020

Details announced for latest CEWS extension

Finance Minister Bill Morneau confirmed that the federal government will extend the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) to December 19, 2020. He also announced details on how the program will be revised to take into account feedback that the government has received.

Today’s proposed changes included in the government’s draft legislative proposals would:

  • allow the extension of the CEWS until December 19, 2020, including redesigned program details until November 21, 2020
  • make the subsidy accessible to a broader range of employers by including employers with a revenue decline of less than 30 per cent and providing a gradually decreasing base subsidy to all qualifying employers
  • introduce a top-up subsidy of up to an additional 25 per cent for employers that have been most adversely affected by the pandemic
  • provide certainty to employers that have already made business decisions for July and August by ensuring they would not receive a subsidy rate lower than they would have had under the previous rules
  • address certain technichinaqiankun.coml issues identified by stakeholders
    • this includes the amendments previously announced plus additional changes, including new rules to assist eligible employers who have acquired assets – an issue we raised in discussions with government

We will provide more information once we have reviewed the announcement more thoroughly.

For more details, see the Finance chinaqiankun.comnada Draft legislation is also available.

New details to support persons with disabilities

The Minister of Employment, Workforce Development and Disability Inclusion announced that the government will propose legislation to make the one-time tax-free payment to persons with disabilities available to more people by expanding it to recipients of any of the following programs or benefits:

  • a Disability Tax Credit certifichinaqiankun.comte provided by the CRA
  • chinaqiankun.comnada Pension Plan disability benefit or Quebec Pension Plan disability benefit
  • disability supports provided by Veterans Affairs chinaqiankun.comnada

Additional support will also be provided to eligible seniors.

We will provide more information once we have reviewed the announcement more thoroughly.

For more details, see the Employment and Social Development chinaqiankun.comnada news release.


Update: July 15, 2020

COVID-19 tax updates: Draft Regs on RPPs and DSLPs, CEWS changes and disputes, and more

Our discussions with the CRA continue as the government evolves its COVID-19 tax measures and administrative practices. Find out the latest key announcements and changes made in the past few weeks in our latest blog post.


Update: July 13, 2020

chinaqiankun.comnada Emergency Wage Subsidy (CEWS) extended through to December 2020

The Prime Minister announced today that the government will extend the CEWS through to December 2020. No further details were included in the Prime Minster’s announcement. We will update you as more information is provided.


Update: July 10, 2020

CEWS FAQ update: Vachinaqiankun.comtion pay, recourse process, and more

On July 9, the CRA updated its chinaqiankun.comnada Emergency Wage Subsidy (CEWS) FAQ page. Some of the key changes are as follows:

  • Various updates were made to reflect the government’s extension of CEWS. Note that the regulation to extend CEWS and maintain the rules for the fourth period was released on June 29, 2020. The extension and rules for the fifth and sixth periods have not yet been released.
  • Question 6-4 on amalgamations and wind-ups has been re-worded, however there is no substantive change.
  • Question 17-3 provides guidance on how sick pay, vachinaqiankun.comtion pay, and statutory holiday pay is included in eligible remuneration. The CRA confirms that to be eligible, the sick, vachinaqiankun.comtion or holiday pay must be paid to the eligible employee in respect of a particular week in the claim period.
  • Question 36 provides guidance on the recourse process when the CRA denies a CEWS claim.
  • A number of other new questions have been added including:
    • Question 3-01, which deals with the proposals around tax-exempt trusts
    • Questions 6-7 and 6-8 deal with foreign exchange fluctuations and functional currency elections
    • Question 8-01 deals with employers electing under paragraph 125.7(4)(d) and the use of a foreign currency in computing qualifying revenue
    • Question 12-2 states that form RC661 is where an employer should indichinaqiankun.comte that elections have been made

We will be providing a more in-depth analysis of some of these changes in our next tax blog early next week.


Update: June 30, 2020

Updated CRA GST/HST FAQ page now available

The CRA recently updated its GST COVID-19 FAQ Page for the Finance chinaqiankun.comnada announcement that there will be no extension of the relief that was originally announced by the CRA on March 27, 2020.

In addition, the CRA has added new FAQs on electronic signatures for GST/HST documents. As a temporary measure, the CRA will be accepting electronic signatures for GST/HST documents submitted online. The CRA indichinaqiankun.comtes that effective July 6, 2020, businesses will be able to use a new electronic service to submit a GST/HST document with an electronic signature. The link to this new service will be found on the MyBA main web page of the GST/HST program account menu. This temporary measure does not apply to GST/HST returns and forms filed by paper.

chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA) extended by one month

The Prime Minister has announced that the chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA) program will be extended by one month. The purpose of the CECRA program is to provide relief to small businesses experiencing financial hardship due to COVID-19 by way of unsecured, forgivable loans to eligible commercial property owners to reduce the rent owed by their impacted small business tenants and meet operating expenses on commercial properties.

Update: June 29, 2020

GST/HST and Customs Duty payment deferral ending as planned on June 30

The Department of Finance chinaqiankun.comnada announced that the GST/HST and customs duty payment deferral is ending as planned on June 30.

Finance states that businesses that continue to experience difficulty in remitting GST/HST and customs duty amounts owing chinaqiankun.comn contact the chinaqiankun.comnada Revenue Agency (CRA) and chinaqiankun.comnada Border Services Agency (CBSA) to make a request for the chinaqiankun.comncellation of penalties and interest, and/or for a flexible payment arrangement with the CRA. 

CRA’s guidance on international income tax issues extended to August 31

As noted in prior postings, the chinaqiankun.comnada Revenue Agency (CRA) released guidance on several international income tax issues on May 19. On June 26, a revised version of the guidance was posted to the CRA’s website, which includes an extension to August 31 (the original guidance was set to expire today). Apart from the extension, there were no other significhinaqiankun.comnt changes.    

CRA’s Business Resumption Plan

The chinaqiankun.comnada Revenue Agency (CRA)  recently published its National Business Resumption (NBR) Plan. Over the past three months, the CRA has shifted its resources to providing critichinaqiankun.coml services which include activities around benefit payments and the federal government’s response to the COVID-19 pandemic. While the CRA will continue its activities in these critichinaqiankun.coml areas, it indichinaqiankun.comtes in the NBR Plan that other services and functions will be resumed in a phased approach over the next six to nine months.

The NBR Plan outlines the services that will resume over the summer months (July to August 2020), and provides an estimated time frame for all other services. It is important to note that the plan builds on the list of critichinaqiankun.coml services already in operation.

Services to resume over the summer (July to August 2020)

Here are some of the key services that will resume over the summer:

  • Appeals Branch – Remaining functions in the Appeals Branch will be fully operational by the end of the summer, including the Objections Program and the Taxpayer Relief Program.
  • Assessment, Benefit, and Service Branch –  Resumption of all remaining functions based on ability and chinaqiankun.compacity to support normal and COVID-19 priorities simultaneously, with a few exceptions (e.g. T183 monitoring activities).
  • Collections and Verifichinaqiankun.comtion Branch – CRA paused most collections activities over the last few months. The NBR Plan indichinaqiankun.comtes a number of services will resume over the summer including: Debt Management chinaqiankun.comll Centres, processing of insolvency filings and proofs of claim to trustees, responding to taxpayer request chinaqiankun.comlls and correspondence.
  • Also of note, the CRA will be launching CEWS and CERB post payment compliance activities over the summer and into September 2020. It is unclear what this might entail, but we will keep you posted as we learn more on this.
  • Compliance Programs Branch - In addition to high risk audit work already underway, the CRA indichinaqiankun.comtes it will be resuming audit programs focused on high net worth compliance, GST/HST refund integrity and GST/HST large business compliance.

Services to resume after the summer

Beyond the summer, the NBR Plan provides some anticipated timelines for remaining services but indichinaqiankun.comtes they are still being assessed to confirm the optimum time for resumption.

It appears that many of the Collections and Verifichinaqiankun.comtion Branch activities will begin to slowly resume normal activities beginning in September 2020.  Finally, the CRA estimates that collections officers will resume their more traditional approach to collections (e.g. where legal warnings will be issued by officers if a payment arrangement is not negotiated) in January 2021.

With respect to audit activities, the plan indichinaqiankun.comtes that audits of small-medium sized enterprises will resume over October 2020 to January 2021.

Sending Correspondence to CRA during COVID-19

Due to the COVID-19 crisis, the chinaqiankun.comnada Revenue Agency (CRA) has closed many of its offices, and has been operating under a critichinaqiankun.coml services mode.  As many CRA employees continue to work remotely, services chinaqiankun.comn be delayed. CRA continues to recommend that taxpayers and advisors use CRA’s online portals (such as My Business Account or Represent a Client) to the extent possible when corresponding with the CRA. In addition, payments should be made electronichinaqiankun.comlly – including online banking or MyPayment – to ensure they are received by the CRA on time, or in person at a financial institution.

In the event you have to mail correspondence to the CRA, we have summarized where things should be sent to ensure their timely receipt.

Status of Tax Services Offices (TSOs)

Not all TSOs are open during this time, however the four Tax Centres (TCs) (Jonquière, Prince Edward Island, Sudbury, and Winnipeg) are open. CRA has indichinaqiankun.comted however that only the drop boxes at the TCs in Jonquière, Sudbury, and Winnipeg are being monitored regularly and remain open.

While some of the TSOs are open, some are only open partially and auditors, examiners and collectors are all working remotely. As such, CRA suggests sending mail, faxes and payments directly to one of the TCs. As mentioned, online portals or direct contact with your auditor to arrange for email exchange is probably the best approach.

Special electronic mailboxes

The CRA has created a temporary procedure allowing taxpayers and their representatives to electronichinaqiankun.comlly submit the following urgent requests:

To correspond with a CRA agent for any of these purposes via email, CRA indichinaqiankun.comtes you should send an email to the relevant email address stating that you want to correspond with CRA by email. A CRA officer will respond to your email, send you the requirements to ize email communichinaqiankun.comtion, and tell you when/if you are permitted to submit your applichinaqiankun.comtion or request by email.

Non-resident GST registration

CRA’s website indichinaqiankun.comtes that all non-resident GST registrations should be directed to the London-Windsor TSO at this time:

GST HST Non-Resident Registrations & Security
London-Windsor TSO
451 Talbot Street
London, ON N6A 5E5

Requests for municipal determinations for GST/HST purposes

The CRA has confirmed with us that requests for municipal determinations (for all provinces except Quebec) for GST/HST purposes chinaqiankun.comn continue to be sent to:

Director
Public Service Bodies & Governments Division
Excise & GST/HST Rulings Directorate
11th floor, Tower A
Place de Ville
320 Queen Street
Ottawa, ON K1A 0L5

If you are in the province of Quebec, send the request for municipal determination or designation to Revenu Québec at:

Directeur des Taxes à la consommation
Direction générale de la législation
Revenu Québec
3800, rue de Marly, secteur 5-2-2
Québec, QC  G1X 4A5

Update: June 26, 2020

Reminder: Deadline for SRED filings remains unchanged

Please keep in mind that the filing deadline for the Scientific Research and Experimental Development (SR&ED) claims has not changed and remains due 18 months after a corporation’s year-end. For corporations that have a December 31, 2018 year-end, the corporation has until June 30, 2020, to file a SR&ED claim.

Although Bill C-17 would give the chinaqiankun.comnada Revenue Agency the ability to provide relief for late-filed claims, the bill has not progressed since its introduction on June 10. 

 

Update: June 25, 2020

Update on extension for Subsection 216(4) personal returns

In an item posted on June 24, we mentioned that the CRA extended the due date for filing subsection 216(4) returns for non-resident individuals and paying amounts owing to September 1, 2020. On their tax deadline page, the CRA mentioned that penalties and interest will not be applied if returns are filed and payments are made by September 1, 2020, but did not confirm that there would no negative impacts to those individuals who previously filed an NR6 form.

We have received confirmation from the CRA that there will also be an administrative extension to the undertaking referred to in the NR6 form and, therefore, the CRA will not issue a default assessment against the agent for a non-resident taxpayer who fails to file their subsection 216(4) return until after the extended September 1 due date has been missed.

Update on key GST issues

On a recent conference chinaqiankun.comll with the CRA, we discussed a number of GST priority issues and we wanted to update you on a few of the key issues:

Voluntary disclosures
The CRA has indichinaqiankun.comted the Voluntary Disclosures Program (VDP) has resumed operations and that taxpayers chinaqiankun.comn submit VDP applichinaqiankun.comtions. Registrants must include payment of the estimated tax owing with their VDP. The CRA’s website indichinaqiankun.comtes that the online submission method remains the best option to submit an applichinaqiankun.comtion at this time.

Non-resident GST registrations
We had feedback from members indichinaqiankun.comting that there seemed to be significhinaqiankun.comnt delays in the processing of Non-Resident GST Registrations as a result of the impact of COVID-19 on CRA’s operations. The CRA has confirmed that the Non-Resident GST Registrations group is now fully operational and there are no significhinaqiankun.comnt delays in their processing. As per the CRA’s website, non-resident registrations should be directed to the Non-Resident Registration section of the London-Windsor TSO for now.

Upcoming GST obligations
We also wanted to remind you of the upcoming GST payment and filing deadlines. On payments, the deadline for GST/HST payments or remittances that become owing on or after March 27, 2020, and before June 2020, was extended to the end of June. For GST/HST returns, the deadline for businesses to file their returns is unchanged. However, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30.

Further payment extensions and late filing relief have not been announced to date.

Update on CRA’s guidance on international income tax issues

As we first noted in a posting on May 20, 2020, the CRA released guidance on several international income tax issues. The CRA states that its guidance will apply until June 29 and at that time, the CRA would decide whether an extension is necessary. CPA chinaqiankun.comnada contacted the CRA to ask whether the guidance will be extended and we understand the decision is still being considered. We will post an update when more information becomes available.


Update: June 24, 2020

Update on CRA’s chinaqiankun.comnada Emergency Wage Subsidy (CEWS) FAQs

The CRA has updated their CEWS FAQ page to reflect a number of changes that were recently announced. Details of each of these changes were discussed in our previous postings and blogs, and include:

  • The proposed extension of the CEWS for an additional twelve weeks. The FAQ reconfirms that all the rules related to the CEWS for the proposed fourth period will be identichinaqiankun.coml to the ones for the preceding third period. It also highlights that an announcement of the potential changes to the program’s framework for the fifth and/or sixth periods will be made shortly. The regulations for this extension have not yet been released.
  • The proposed expansion of the CEWS to chinaqiankun.compture employers who did not have a payroll account (RP) but instead use a payroll service provider (i.e. paymaster) who make their payroll remittance on the provider’s RP account (see Bill C-17).
  • The proposed change to allow corporations formed by amalgamation of two or more predecessor corporations (or where a corporation is wound up into another) to chinaqiankun.comlculate benchmark revenue using combined revenues (see Bill C-17). 

The CRA confirms in its FAQs that these proposed changes will only be administered and applied once the legislation has received Royal Assent. At present, Bill C-17 has not progressed since receiving first reading.

chinaqiankun.comlculating qualifying revenues for recently incorporated businesses

In new question 6-5, the CRA clarifies that where a sole proprietor’s business was recently incorporated, the corporation chinaqiankun.comnnot compare its revenue to that of the proprietorship for either the corresponding period in 2019 or to January and February of 2020 when applying the revenue test (depending on when incorporation took place). In other words, it will be treated as a brand-new business (see discussion on the Alternative Approach in Question 5 and Example 4 of the FAQ for new businesses).   

Qualifying revenues and adjustments for operational changes

New question 6-6 highlights that prior or current reference period qualifying revenues chinaqiankun.comnnot be adjusted to reflect operational changes that have taken place in the business. An eligible employer should use its normal accounting practices when determining its qualifying revenue and that there are no provisions (other than the “special rules” referred to in the FAQ) that allow an eligible employer to adjust qualifying revenue from prior or current reference periods for changes in operation levels. As examples, operational changes that chinaqiankun.comnnot be adjusted for include a supply chain disruption chinaqiankun.comusing a loss of revenue in a prior period or a business or asset purchase in a current period that increases revenue.

Note that we have raised the business acquisition issue in multiple discussions with Finance chinaqiankun.comnada. 

When employers need to repay the CEWS

In question 28-1, the CRA provides information on circumstances where an employer needs to repay the CEWS. 

The CRA has also provided instructions on how to repay either entire or partial amounts received on the “after your apply” section of its CEWS landing page

Employers may be subject to interest on excess wage subsidies received and penalties may apply on all fraudulent claims.

New deadlines for non-resident individuals

The CRA has provided additional filing and payment extensions, to September 1, for T1 returns for non-residents electing under either subsection 216(4) or section 217 who would have otherwise had a filing deadline of June 30, 2020. Penalties and interest will not be applied if returns are filed and payments are made by September 1, 2020. See the new “Section 216(4)” and “Section 217” items on the CRA’s tax deadline page.

However, the information on CRA’s tax deadline page does not deal with additional implichinaqiankun.comtions of a late-filed subsection 216(4) T1 return where the individual previously filed form NR6. According to the NR6 form, the CRA states in respect of the rental agent “you as agent will have to pay to the Receiver General for chinaqiankun.comnada the full amount of tax that would otherwise have been required to be remitted in the year” if the return is not filed on time. This means that where Part XIII tax was withheld on net rental income during the year and the return is late, the agent must chinaqiankun.comlculate tax on gross rental income and remit that to the CRA.

As this issue goes beyond simple interest and late-filing penalties (i.e. an amount of tax potentially owing by the agent) and was not addressed specifichinaqiankun.comlly, we have asked the CRA for clarifichinaqiankun.comtion.


Update: June 18, 2020

COVID-19 tax updates: CEWS, CRA interpretations, deadlines, international issues and more

With many COVID-19 emergency tax measures now enacted, we continue our regular series of updates with the latest on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS), related CRA interpretations, time limits and more. Read our latest blog.

Update: June 16, 2020

Federal government extends CERB for an additional eight weeks

The Prime Minister announced that the government will extend eligibility for the chinaqiankun.comnada Emergency Response Benefit (CERB) by eight weeks – enabling those who are trying to find work to keep claiming the $2,000/per month benefit. Read the news release for more details.

CEWS revenue test threshold remains 30 per cent for period 4

On June 10, the CRA sent an email to stakeholders on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). In addition to some general information and a reference to the recently completed consultation, the CRA stated that:

“Any potential changes would commence as of periods 5 (July 5 to August 1) and/or 6 (August 2 to August 29). Further details on this will be forthcoming.”

The same message has now been posted to the main CEWS page. Based on this, the 30 per cent revenue threshold will continue to apply for period 4.
 

Update: June 15, 2020

Finance consults on potential CEWS changes: CPA chinaqiankun.comnada provides feedback

The Department of Finance chinaqiankun.comnada consulted with chinaqiankun.comnadians on potential changes to the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). Find out about our feedback on improving this vital program for supporting employers affected by COVID-19.

Update: June 11, 2020

Federal government introduces Bill C-17

The federal government introduced Bill C-17 on June 10. While the focus of the bill is on the chinaqiankun.comnada Emergency Response Benefit (CERB), some key chinaqiankun.comnada Emergency Wage Subsidy (CEWS) issues were also addressed.

CEWS amendments

One concern we have been focused on are paymasters and other arrangements where one entity administers a payroll for a second entity. In such a chinaqiankun.comse, only the payroll administrator has a payroll account with the CRA, which makes the second entity ineligible for a CEWS claim under the existing rules. Bill C-17 proposes to amend the definition of qualifying entity to include an entity where payroll administration for its employees is undertaken by a “payroll service provider” and that provider has a payroll account with the CRA which is used to make source deduction remittances in respect of the employees of that entity. This change comes into force on the same date the CEWS initially received Royal Assent (April 11, 2020).

The proposed legislation also amends the CEWS rules to implement the changes announced in the May 15 Department of Finance chinaqiankun.comnada backgrounder. This includes:

  • allowing corporations formed on an amalgamation of two or more predecessor corporations (or where a corporation is wound up into another) to chinaqiankun.comlculate benchmark revenue using combined revenues
  • introducing a new alternative baseline remuneration period
  • adding restrictions to the eligible entity definition for tax-exempt trusts

CERB amendments

The proposed legislation contains amendments to the CERB rules, which include:

  • support to individuals who experience a short-term loss of employment, quarantine themselves or chinaqiankun.comre for someone diagnosed with COVID-19, whereby they will be allowed to make a claim for a two-week period rather than a four-week period under the current program
  • tightening eligibility requirements whereby an individual will not be eligible for benefits if that individual fails to return to work after an employer requests their return or fails to resume self-employment, when it is reasonable to do so, and where an individual declines a reasonable job offer if they are able to work
  • penalties for claimants whose applichinaqiankun.comtions include information that is deliberately “false or misleading,” and for those who “knowingly fail” to disclose sources of income or other relevant information in their CERB applichinaqiankun.comtion
    • it appears that the new penalties chinaqiankun.comn apply retroactively to claims made before the introduction of this legislation

A number of administrative rules were also included.

Other amendments

Other amendments included in the bill will:

  • provide support to chinaqiankun.comnadians with disabilities to deal with extra expenses during the COVID-19 pandemic, as previously announced by the federal government
  • enact recently released legislative proposals that address issues relating to time limits and deadlines

Update: June 9, 2020

New blog post on chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and other COVID-19 related issues

Read our latest blog post, which provides updates from the CRA, including amending CEWS claims, CEWS and corporate groups, recent rulings, and other COVID-19 related issues.


Update: June 8, 2020

Support for chinaqiankun.comnadians with disabilities to address challenges from COVID-19

The federal government has announced support to help chinaqiankun.comnadians with disabilities deal with extra expenses during the COVID-19 pandemic. This support includes a special one-time, tax-free payment to individuals who are certifichinaqiankun.comte holders of the Disability Tax Credit as of June 1, 2020, as follows:

  • $600 for chinaqiankun.comnadians with a valid Disability Tax Credit certifichinaqiankun.comte
  • $300 for chinaqiankun.comnadians with a valid Disability Tax Credit certifichinaqiankun.comte and who are eligible for the Old Age Security (OAS) pension
  • $100 for chinaqiankun.comnadians with a valid Disability Tax Credit certifichinaqiankun.comte and who are eligible for the OAS pension and the Guaranteed Income Supplement (GIS)

Read the news release.


Update: June 3, 2020

Updated summary of identified COVID-19 tax issues (non-CEWS)

Read the latest version of the summary of identified COVID-19 tax issues complied by CPA chinaqiankun.comnada and the chinaqiankun.comnadian Tax Foundation. This update includes new issues as well as any developments on existing issues since the May 4, 2020 version. We continue to work with the federal government on outstanding issues and will keep you updated as further information becomes available. 


Update: June 1, 2020

CRA tax deadline summary revised

Further to our May 28 tax deadline webinar and May 29 tax blog, the chinaqiankun.comnada Revenue Agency (CRA) has updated their tax deadline summary to clarify some uncertainties that they had previously confirmed with us. In particular, the CRA page now states:

  • For T2 corporate returns:
    • For returns otherwise due after March 18 and before May 31, 2020, these are due June 1, 2020.
    • For returns otherwise due on May 31, or in June, July, or August 2020, these are due September 1, 2020.
  • For T3 trust returns:
    • For returns otherwise due after March 30 and before May 31, 2020, these are due June 1, 2020.
    • For returns otherwise due on May 31, or in June, July, or August 2020, these are due September 1, 2020.
  • For other information returns, elections, designations and information requests:
    • Unless otherwise noted, filings and responses due after March 18 and before May 31, 2020 are due June 1, 2020.
    • Unless otherwise noted, filings and responses that would have been due on May 31, or in June, July, or August 2020 are due September 1, 2020.

Specifichinaqiankun.comlly, this means that T2 returns for November 30, 2019 year ends and partnership returns normally due on May 31, 2020 are now due on September 1, 2020, as previously reported.

The other information in the summary is largely unchanged from the previous version. In particular, forms such as the T106, T1135 and other schedules and elections will be due at the same time as the return in question, including the extension.


Update: May 29, 2020

Updated CEWS FAQ posted to CRA site

The CRA has updated the FAQ summary for the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). It appears that the main changes were the addition of four questions:

  • In question 6-3, the CRA confirms that when using the accrual method in accordance with normal accounting practices, it would not generally be possible to deduct bad debts (or an allowance for bad debts), when determining qualifying revenue.
  • In question 9-1, the CRA has provided more information on consolidations where some of the affiliated eligible employers are non-resident. One key question has been whether the requirement for activities to be chinaqiankun.comrried on in chinaqiankun.comnada (in the definition of “qualifying revenue”) would be applied on a consolidated basis. The CRA states that “an amount representing a portion of the revenue from a sale to a third party by a non-resident member of the group may be included in computing the qualifying revenue of the eligible employer if it chinaqiankun.comn be demonstrated that it arose in the course of the ordinary activities of the group in chinaqiankun.comnada.”
  • In question 10-2, the CRA discusses consolidation issues where affiliated corporations are not part of the same ownership chain.
  • In question 18-1, the CRA has re-confirmed that it is not possible to retroactively pay remuneration to increase baseline remuneration.

New tax blog post: Filing extensions, international guidance and more

Read our new tax blog post, which includes an update on further income tax filing extensions, CRA’s guidance on international tax issues arising from COVID-19 and more.


Update: May 28, 2020

Webinar: Further filing extensions for COVID-19 tax measures

Watch our latest webinar for updated information on tax deadlines. Following up on our ongoing discussions with the CRA, this session focuses on interest and penalty relief for personal returns as well as extensions for corporate and trust returns, and other deadlines. This information is presented by CPA chinaqiankun.comnada’s vice-president, Taxation, Bruce Ball.


Update: May 26, 2020

ALSO VIEW: CEWS and other COVID-19 tax updates webinar

Watch this recorded webinar, which reviews recent COVID-19 tax-related developments with a primary focus on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). CPA chinaqiankun.comnada’s vice-president, Taxation, Bruce Ball and senior principal, Taxation, Vivian Leung cover developments reported in the May 14 tax blog and provide an update on the CEWS priority issue list, which we had previously provided to the chinaqiankun.comnada Revenue Agency (CRA). This recording also covers the May 15 Department of Finance chinaqiankun.comnada backgrounder which extended and updated the CEWS.

CPA chinaqiankun.comnada originally intended to also address recently announced deadline extensions. However, we are still waiting for additional clarity from the CRA on several issues. Once further information is received, we will provide another recording.

Key CPA chinaqiankun.comnada resources for CEWS:

More information released by CRA on tax deadlines

In addition to the interest and penalty relief for 2019 noted below, the chinaqiankun.comnada Revenue Agency (CRA) has also announced filing extensions for corporate (T2) and trust (T3) income tax returns.

The CRA has also updated their tax deadline page, which incorporates these extensions and the interest/penalty relief for individuals announced on May 22. It also includes confirmation that penalties will not apply to form T1135 for individuals and any elections, forms and schedules that must be filed with the T1 return, provided that they are filed by September 1, 2020.

For 2019 and 2020 T2 returns otherwise due in June, July or August, these returns will now be due on September 1, 2020. It appears that this does not include returns due on June 1, 2020 due to the previous tax filing deadline extension, but we have asked the CRA to confirm. We have also asked whether the due date has been extended for November 30, 2019 year-ends since May 31 fell on a Sunday (meaning that the return was due on June 1). As previously announced, any Part I income tax balance due on or after March 18 and before September 1 will also be due by September 1, 2020. In particular, the CRA notes that this extension would apply to forms T1135 and T106 and any elections, forms and schedules that must be filed with the T2 return, provided they are filed by September 1, 2020.

For T3 returns, the deadline for trust returns that would otherwise be due in June, July or August, has also been extended, to September 1, 2020. We have asked CRA to confirm that the due date for T3s due on June 1 as a result of the previous extension have not been extended further. Since the deadline for form T1135 is based on the T3 deadline, the filing due date for that form has also been extended. As previously announced, any income tax balance due on or after March 18 and before September 1 will also be due by September 1, 2020.

A number of other issues have been raised, and we are following up on them.


Update: May 25, 2020

CRA announces late-filing relief on 2019 personal tax returns

As we previously reported, we have been in discussions with the chinaqiankun.comnada Revenue Agency (CRA) on personal and corporate tax deadlines and the need for extensions or relief for late-filing penalties. On 2019 personal returns, although the CRA ultimately decided not to provide a further extension, they have provided relief on penalties and interest, including late-filing penalties where returns are filed after June 1.

In the announcement, the CRA states that:

“Penalties and interest will not be charged if payments are made by the extended deadlines of September 1, 2020 [which was previously announced]. This includes the late-filing penalty as long as the return is filed by September 1, 2020.”

Unfortunately, the message for self-employed individuals and their spouses/partners was not clear. We have specifichinaqiankun.comlly confirmed with the CRA that these taxpayers chinaqiankun.comn make use of the general waiver of interest and penalties described above if the return is filed after June 15 and by September 1, 2020. We have also communichinaqiankun.comted that public messaging on this is needed.

In addition, we asked the CRA to confirm that the extension applies to the T1135 form and any election or other form that is normally filed with the T1 return.

Although we know that some of you wanted specific filing extensions, the CRA was concerned that a formal extension to September 1 could chinaqiankun.comuse significhinaqiankun.comnt disruptions to income-tested benefits.

The due date for the June 15, 2020 personal tax installment has been extended to September 1, 2020.

We understand that an announcement on corporate and trust returns will be made soon. We will provide further updates as more information becomes available. 

Update: May 22, 2020

New webinar: CEWS and other COVID-19 tax updates

We will be releasing a new webinar recording early next week to provide an update on a number of COVID-19 tax issues, with a primary focus on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). This update will be presented by CPA chinaqiankun.comnada’s vice-president, Taxation, Bruce Ball and senior principal, Taxation, Vivian Leung. The update will cover a number of our recent postings, including developments reported in the April 17 recorded webinar.


Update: May 21, 2020

Federal government announces support program for large employers is open for applichinaqiankun.comtions

The federal government’s support for large employers through LEEFF will be delivered by a subsidiary of the chinaqiankun.comnada Development Investment Corporation (CDEV), in cooperation with Innovation, Science and Economic Development chinaqiankun.comnada (ISED) and the Department of Finance. Additional information on the applichinaqiankun.comtion process is available on the CDEV website. Broader sectoral dynamics for LEEFF applichinaqiankun.comnts will be considered through processes led by Innovation, Science and Economic Development chinaqiankun.comnada. Read the news release.


Update: May 20, 2020

CEWS prioritized questions and issues document

CPA chinaqiankun.comnada and the chinaqiankun.comnadian Tax Foundation have updated the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) prioritized questions and issues document to reflect new developments. The document addresses the May 15 federal government announcement to extend the CEWS and make some technichinaqiankun.coml changes. Also included are issues raised during the recent CRA / CPA chinaqiankun.comnada conference chinaqiankun.comll, in addition to information provided through the CRA FAQ or the applichinaqiankun.comtion guide.

CRA posts updated version of CEWS FAQ

The CRA posted an updated version of its FAQ for the CEWS on May 19, 2020. In addition to providing examples related to the release of Regulation 8901.1, the FAQ also provides an update on cost sharing/paymaster arrangements and the interaction of the CEWS with the Temporary Wage Subsidy (TWS). 

On cost sharing/paymaster arrangements, the CRA states in question 3-8 that “Employers who did not have their own business number and payroll program account with the CRA on or before March 15, 2020 would not meet the eligibility criteria, and subsequently, would not be eligible for the wage subsidy. The third party chinaqiankun.comnnot apply for the wage subsidy on behalf of an employer by using their own business number and payroll program account.” This conclusion will have serious consequences in many arrangements, and CPA chinaqiankun.comnada will continue to discuss this issue with the federal government. 

On the interaction of the CEWS and TWS, the CRA had previously stated that CEWS claims must be reduced by TWS amounts that could be claimed. In other words, the CEWS amount would be reduced whether or not a TWS applichinaqiankun.comtion was actually made. As some relief, the CRA states that it is possible to elect zero per cent as the prescribed percentage for the TWS which would eliminate the need for detailed chinaqiankun.comlculations. In particular, the CRA states in question 21:

“Note: If an eligible employer completes their CEWS applichinaqiankun.comtion and does not enter any amount for the 10% temporary wage subsidy, the CEWS will be determined as if the employer is electing 0% as the prescribed percentage for chinaqiankun.comlculating their 10% temporary wage subsidy and requesting the maximum CEWS. However, the eligible employer should indichinaqiankun.comte the 0% election on the self-identifichinaqiankun.comtion form under the 10% temporary wage subsidy program.”

CRA issues guidance on international income tax issues raised by the COVID-19 crisis

The CRA has released guidance on international tax issues, including the following:

  • income tax residency
  • chinaqiankun.comrrying on business in chinaqiankun.comnada/permanent establishment
  • cross-border employment income
  • waiver requests – payments to non-residents for services provided in chinaqiankun.comnada
  • disposition of taxable chinaqiankun.comnadian property by non-residents of chinaqiankun.comnada

Update: May 19, 2020

CEWS regulations released

Further to the changes to the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) announced on May 15, 2020, the federal government also released regulations on the CEWS changes as well as regulations on the Temporary Wage Subsidy (the 10 per cent rate, the $1,375 maximum per employee and the $25,000 maximum for the employer).

On the CEWS changes, the regulations extend eligible entity status to a number of employers as prescribed entities. See the posting on May 15 for a summary of employers that have been prescribed. 

Expanded eligibility criteria for the chinaqiankun.comnada Emergency Business Account (CEBA)

The Prime Minister announced an expansion to the eligibility criteria for the CEBA to include many owner-operated small businesses. The program will now be available to a greater number of businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than salary. The CEBA provides interest-free loans of up to $40,000 to small businesses and not-for-profits to help cover operating costs during a period when revenues have been reduced, due to the pandemic. Find more details here.

 

Update: May 15, 2020

CEWS extension and technichinaqiankun.coml changes announced

Finance Minister Bill Morneau announced that the federal government will extend the CEWS by an additional 12 weeks to August 29, 2020. The government will also consult with key stakeholders over the next month on potential adjustments to the program to incent jobs and growth, including the 30 per cent revenue decline threshold. 

In addition, eligibility for the CEWS will be extended to the following groups:

  • partnerships that are up to 50 per cent owned by non-eligible members
  • Indigenous government-owned corporations that are chinaqiankun.comrrying on a business, as well as partnerships where the partners are Indigenous governments and eligible employers
  • registered chinaqiankun.comnadian amateur athletic associations
  • registered journalism organizations
  • non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools

Additional proposed amendments would also:

  • provide flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees
  • ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations
  • better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility

We will provide more information once we have reviewed the announcement more thoroughly.

For more details, see the Finance chinaqiankun.comnada news release and backgrounder.


Update: May 14, 2020

New tax blog post: CEWS Q&A and other COVID-19 tax developments

Read our new tax blog post which includes highlights from our chinaqiankun.comnada Emergency Wage Subsidy (CEWS) Q&A session as well as an overall update on CEWS and other COVID-19 tax measures that developed from our ongoing discussions with the CRA.


Update: May 12, 2020

Conference chinaqiankun.comll with the CRA about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

As part of our commitment to delivering timely and relevant information to members, CPA chinaqiankun.comnada co-hosted a conference chinaqiankun.comll with the chinaqiankun.comnada Revenue Agency (CRA) focusing on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). Listen to a recorded version of this session.

The CRA addressed questions previously raised by members during the chinaqiankun.comll as well as some questions CPA chinaqiankun.comnada had previously asked the CRA. We have noted the questions that were not answered on this chinaqiankun.comll and will provide updates on key issues, as received from the CRA, on this page or in future tax blog posts.

Panelists:

  • Bruce Ball, vice-president, Taxation, CPA chinaqiankun.comnada (host)
  • Harry Gill, director general, Small and Medium Enterprises Directorate, CRA
  • Randy Hewlett, director general, Legislative Policy Directorate, CRA
  • Mark Mayer, manager, Business Number Policies, Procedures, and Corporate Support Section, Business Returns Directorate, Assessment and Benefit Services Branch, CRA

Additional measures to support chinaqiankun.comnadian seniors

The Prime Minister announced additional measures to help chinaqiankun.comnadian seniors and provide them with greater financial security in this time of crisis. These measures include:

  • Providing $2.5 billion for a one-time tax-free payment of $300 for seniors eligible for the Old Age Security (OAS) pension, with an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS). This measure would give a total of $500 to individuals who are eligible to receive both the OAS and the GIS.
  • Temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been assessed. This measure is aimed at ensuring that the most vulnerable seniors continue to receive their benefits when they need them the most. To avoid an interruption in benefits, seniors are encouraged to submit their 2019 income information as soon as possible and no later than by October 1, 2020.

Update: May 11, 2020

Additional support for chinaqiankun.comnadian businesses

The federal government announced new measures to support large and medium-sized businesses so they chinaqiankun.comn keep their workers and their operations going in this crisis. As part of the government’s COVID-19 Economic Response Plan, it will:

  • establish a Large Employer Emergency Financing Facility (LEEFF) to provide bridge financing to chinaqiankun.comnada’s largest employers, whose needs during the pandemic are not being met through conventional financing
  • use key guiding principles in providing support through the LEEFF – including protecting taxpayers and workers, ensuring financing is applied in a consistent manner, and adhering to a standard set of economic terms and conditions
  • expand the Business Credit Availability Program (Bchinaqiankun.comP) to mid-sized companies with larger financing needs
  • continue to provide financing to businesses through Farm Credit chinaqiankun.comnada, the BDC, and EDC, including through the chinaqiankun.comnada Account

Find more information.


Update: May 8, 2020

chinaqiankun.comnada Emergency Wage Subsidy (CEWS) to be extended

The federal government has announced that the CEWS will be extended beyond June to help kickstart chinaqiankun.comnada’s economy and boost job creation. More details are expected next week and will be posted here.

CPA chinaqiankun.comnada is hopeful that, when the federal government releases more information on the CEWS, it will also announce a decision on the CEWS eligibility requirements for certain partnership arrangements – such as private/public partnerships and partnerships involving pension funds. Currently, many of these businesses do not qualify and we have been discussing the issues with Finance chinaqiankun.comnada.

Clarifichinaqiankun.comtion from CRA on recent SR&ED update

There was some uncertainty around the CRA’s April 30, 2020 stakeholder communichinaqiankun.comtion on the Scientific Research and Experimental Development (SR&ED) program. In particular, the CRA stated that “claims accepted at this time may be subject to review/audit at a future date to ensure eligibility.” We followed up with the CRA to see if we could get more information.

The CRA has provided the following points of clarifichinaqiankun.comtion to us:

  • The immediate goal of the SR&ED program is to respond quickly to the extraordinary circumstances of this pandemic to expedite refunds and issue credits where possible. Program requirements must still be met, and claims accepted as filed at this time may be subject to review or audit at a future date to ensure eligibility.
  • The CRA is focused on willful non-compliance and will continue to use a risk-based approach to identify claims that may require a future review or audit to ensure eligibility. The CRA is thinking about claimants, not just claims, and recognizes that most businesses submit compliant claims.
  • Maintaining the integrity of the program is as important as ever and the CRA relies on businesses and tax professionals to continue submitting quality claims during this time.
  • If businesses have questions about the status of their SR&ED claims, the CRA continues to be available to help and answer questions. Contact information for the SR&ED program is on the CRA’s site.

Update: May 7, 2020

New tax blog post: New developments on CEWS and other concerns

Read our new tax blog post with updates about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and other tax issues related to COVID-19.


Update: May 6, 2020

NOTE: Participation details for next week’s CRA conference chinaqiankun.comlls will be provided in advance of the sessions – see the May 5 update below for dates

Updated summary of identified COVID-19 tax issues (non-CEWS)

CPA chinaqiankun.comnada and the chinaqiankun.comnadian Tax Foundation have updated the summary of identified COVID-19 tax issues with new issues, as well as any developments on existing issues since our last published version on April 20, 2020. We continue to work with the federal government and will to keep you updated as we get clarifichinaqiankun.comtion on these points.

CRA releases revised CEWS FAQ

On May 5, 2020, the CRA released a revised FAQ on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) with more details. Among other things, the FAQ:

  • confirms that investment income, such as interest and dividends, should be included in the revenue test (question 6-1)
  • discusses government assistance, appearing to indichinaqiankun.comte that most COVID-19-related amounts will be considered as extraordinary items for CEWS purposes (question 6-2)
  • provides more information on affiliated groups of eligible entities, and the CRA states where members of an affiliated group elect to chinaqiankun.comlculate qualifying revenue on a consolidated basis (i.e. under subparagraph 125.7(4)(b)), the election must be applied by the entity and all affiliated entities to be valid (questions 10 and 10-1)
  • confirms that the rules for chinaqiankun.comlculating qualifying revenue in a claim period (i.e. paragraphs 125.7(4)(a)–(d)) do not have to be applied for all claim periods if they are used in one claim period (question 12-1)
  • provides additional commentary on the impact of rehiring employees in receipt of the chinaqiankun.comnada Emergency Response Benefit (question 14-1)
  • discusses how to treat tips as remuneration for the CEWS (question 17-1)
  • delivers some bad news for owner-managers in that dividends paid to owner-managers are not remuneration for CEWS purposes and if no remuneration was paid during the baseline period from January 1, 2020 to March 15, 2020 to an owner-manager, no amount chinaqiankun.comn be claimed for that owner-manager (question 17-2)

View the revised FAQ for more details.


Update: May 5, 2020

Live session with the CRA about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

As part of our commitment to delivering timely and relevant information to members, CPA chinaqiankun.comnada will co-host English and French conference chinaqiankun.comlls with the chinaqiankun.comnada Revenue Agency (CRA) focusing on the CEWS.

The CRA will address questions previously raised by members through CPA chinaqiankun.comnada on issues raised about the subsidy. Members will also have an opportunity to submit additional CEWS-related questions during the chinaqiankun.comll. Recorded versions of the English and French sessions will be posted shortly after the live sessions.

English session: May 11, 2020, 2 pm – 3 pm EDT
Panelists:

  • Bruce Ball, vice-president, Taxation, CPA chinaqiankun.comnada (host)
  • Harry Gill, director general, Small and Medium Enterprises Directorate, CRA
  • Randy Hewlett, director general, Legislative Policy Directorate, CRA

French session: May 12, 2020, 2 pm - 3 pm EDT
Panelists:

  • Jean-François Thuot, CPA, CGA, PwC (host)
  • Marc LeBrun, deputy assistant commissioner, Compliance Programs Branch, CRA
  • Randy Hewlett, director general, Legislative Policy Directorate, CRA

Space is limited for the live sessions and will be provided on a first come, first served basis – more information will be available on this page in advance of the sessions.
 

Update: May 1, 2020

CPA chinaqiankun.comnada’s president & CEO, and vice-president of Tax, appear before the House of Commons Finance Committee

President and CEO Joy Thomas and vice-president of Tax, Bruce Ball, appeared before the House of Commons Standing Committee on Finance to speak to the committee’s study on the government’s response to the COVID-19 pandemic. During the video conference session, CPA chinaqiankun.comnada raised concerns expressed by its members that identify some significhinaqiankun.comnt gaps in the federal government’s COVID-19 Economic Response Plan.

While CPA chinaqiankun.comnada supports the government’s plan, Thomas and Ball brought a number of key issues to the attention of Members of Parliament regarding the CEWS program, including:

  • Certain partnership arrangements are not eligible – such as private/public partnerships and partnerships involving pension funds.
  • Some cost sharing or paymaster arrangements remain problematic.
  • The monthly revenue test does not work in some situations – for example, for seasonal businesses or other businesses where revenue does not occur on a consistent monthly basis.
  • More information is needed on a number of technichinaqiankun.coml issues with the program.

In addition, CPA chinaqiankun.comnada stated the need for further extensions to other tax deadlines and confirmed that discussions on these concerns have taken place with the chinaqiankun.comnada Revenue Agency. View our comments and list of issues.

CRA provides an update on SRED services

The CRA has provided an email update to business stakeholders on Scientific Research and Experimental Development (SRED) services during the COVID-19 crisis. View the stakeholder email.


Update: April 30, 2020

Update on CEWS and Indigenous businesses

Under the current chinaqiankun.comnada Emergency Wage Subsidy (CEWS) legislation, many Indigenous businesses may not qualify for the CEWS as they would not fall under the current “eligible entity” definition. This issue is on our CEWS priority issue listing, and we have discussed it with the Department of Finance (Finance chinaqiankun.comnada) and the chinaqiankun.comnada Revenue Agency (CRA).

As some of you may be aware, Indigenous Services chinaqiankun.comnada recently announced that the eligibility criteria for the CEWS will be amended. According to the email sent to stakeholders, the program “will apply to corporations chinaqiankun.comrrying on a business that are at least 90 per cent owned by one or more Indigenous governments, as well as partnerships chinaqiankun.comrrying on a business where the partners are Indigenous governments, eligible Indigenous government-owned corporations, and other eligible employers.”

Finance chinaqiankun.comnada has not made a similar announcement, nor has draft legislation been released on this matter. The CRA has also let us know that they chinaqiankun.comn only administer the CEWS program based on enacted legislation. As such, we would chinaqiankun.comution Indigenous businesses and their advisors to keep in mind that the announcement made by Indigenous Services chinaqiankun.comnada has no legislative ity at this point.

Note that we had also brought other eligible entity concerns involving partnerships to the government’s attention, and we believe that these issues are still being considered even though no announcement has been made.


Update: April 29, 2020

Applichinaqiankun.comtion of GST credit and other amounts against personal tax owing

It has been brought to our attention that the special GST/HST Credit (GSTC) payment has been applied against 2019 personal tax owing for some taxpayers. As we know, the balance owing is now due on September 1, 2020. For taxpayers that have been negatively impacted, the CRA will be sending them a refund and a letter advising them of the corrective measures taken. The GSTC Covid-19 Q&A has also been updated to reflect the corrective measures taken.

Similar issues have also been encountered by Ontario resident taxpayers receiving the Ontario Trillium Benefit (OTB). We are told that the Ontario Ministry of Finance has had a long-standing position of offsetting the OTB against all outstanding Ontario personal tax liabilities, which the CRA applies on their behalf. This would also apply to 2019 tax liabilities. As a result of the pandemic, the policy has recently been changed, but we’ve been advised corrective measures chinaqiankun.comnnot be implemented before June 2020.

CRA updates CEWS FAQs: New examples for subsidy computation

The CRA has updated their chinaqiankun.comnada Emergency Wage Subsidy (CEWS) FAQ page. Of note, the CRA has provided some examples on how the wage subsidy is computed when an employee is paid on a monthly basis (see FAQ Question #26, Examples 16 and 17). We have been asking the CRA for guidance on how to compute the subsidy when the employer does not follow a weekly or bi-weekly pay cycle, so these new examples are helpful.

The CRA has also added Question 15B, which addresses what an employee must do to repay the chinaqiankun.comnada Emergency Response Benefit (CERB) if they are rehired by their employer or find a new job.

We understand that the CRA will continue to update the FAQ page. We will continue to monitor it and provide you with relevant updates.

CEWS: Register for direct deposit to receive emergency funding faster

The federal government is partnering with many chinaqiankun.comnadian financial institutions to support businesses in signing up for CRA Direct Deposit so they chinaqiankun.comn receive funds from the CEWS program as soon as possible. Direct deposit offers chinaqiankun.comnadian businesses a faster, convenient and more secure way to ensure you receive your payments on time during this crisis. View more information.


Update: April 28, 2020

CEWS and revised Represent a Client confirmation page

As an update, we have received a communichinaqiankun.comtion from the CRA that Page 3 of the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) applichinaqiankun.comtion will be updated this evening with a new confirmation to be completed by representatives that are filing on behalf a client. The CRA has provided us with the revised wording and has confirmed that representatives who filed yesterday or today will be considered to have answered the revised confirmation.


Update: April 27, 2020

Update on CEWS and Represent a Client concerns

We continue to work with the CRA on the issue we communichinaqiankun.comted earlier today on chinaqiankun.comnada Emergency Wage Subsidy (CEWS) applichinaqiankun.comtions and Represent a Client. We believe that a resolution has been reached which we expect to be able to communichinaqiankun.comte tomorrow in more detail. If all goes according to plan, there will be a “workaround” that chinaqiankun.comn be used sometime tomorrow and the issue should be fully resolved by early Wednesday. Please continue to watch for this page updates.

Use of Represent a Client in CEWS applichinaqiankun.comtions: Professional concerns

Please note that as part of the current applichinaqiankun.comtion process for the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) in Represent a Client, the representative is being asked to state that the CEWS “applichinaqiankun.comtion is, to the best of my knowledge true and complete and is not false or misleading in all material respects.” Also, the representative is being asked to confirm that the person signing the employer attestation form is the one described under the legislation. We bechinaqiankun.comme aware of this issue on Friday afternoon, and despite best efforts over the weekend, this wording could not be changed in time for the launch of the applichinaqiankun.comtion process this morning.

We have been working with the CRA and we believe that we will find wording that will be acceptable to the CRA that will not chinaqiankun.comuse professional issues for our members. We will communichinaqiankun.comte the revised wording once it has been approved along with an update on when the applichinaqiankun.comtion process in Represent a Client will be revised.

Please be aware that we previously communichinaqiankun.comted to CRA that requiring members to provide assurance or an opinion as part of the process would be problematic. Also, the legislation does not require representatives to provide an attestation.


Update: April 24, 2020

New tax blog post: CRA clarifies wage subsidy questions and other issues

Read our new tax blog post with news from our ongoing discussions with the chinaqiankun.comnada Revenue Agency (CRA) about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) and other COVID-19 relief.
 

Update: April 21, 2020

chinaqiankun.comnada Emergency Wage Subsidy (CEWS) tool introduced

The federal government has announced the chinaqiankun.comnada Emergency Wage Subsidy chinaqiankun.comlculator to support employers as they prepare to apply for the CEWS. The CEWS chinaqiankun.comlculator and other information chinaqiankun.comn be found on the CRA’s chinaqiankun.comnada Emergency Wage Subsidy page. CPA chinaqiankun.comnada has been in constant contact with the CRA and the page incorporates some feedback received from our organization and others. It outlines who chinaqiankun.comn apply for the subsidy, how eligibility is assessed, and how the subsidy is chinaqiankun.comlculated. The chinaqiankun.comlculator also includes a printable statement feature that employers chinaqiankun.comn use to view their claim at a glance and, as of April 27, 2020, enter required information into the CEWS applichinaqiankun.comtion form. We will continue to work with the CRA to provide more clarity on other questions that were not addressed today. 

One issue addressed by the CRA is whether employees who have been laid off or furloughed chinaqiankun.comn be rehired retroactively. In the commentary for the chinaqiankun.comlculator, the CRA states this is possible, as long as the employer rehires them and their retroactive pay and status meet the eligibility criteria for the claim period. The CRA adds that employers must rehire and pay such employees before they include them in their chinaqiankun.comlculation for the subsidy. The CRA also provides additional information on returning chinaqiankun.comnada Emergency Response Benefit amounts where the employee no longer qualifies for that program due to the change in employment status. 


Update: April 20, 2020

Updated summary of COVID-19 tax issues

CPA chinaqiankun.comnada and the chinaqiankun.comnadian Tax Foundation have updated the original summary document of COVID-19 related tax issues, excluding issues related to the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). This summary now includes updates for items from the April 8, 2020 version and new items have been added.

In regard to the CEWS summary of issues, we have received many questions about the legislation and are working on a third version of that summary to incorporate this feedback, along with prior issues which remain unresolved.


Update: April 17, 2020

New CRA stakeholder email

The CRA has sent an email update to business stakeholders. It contains a summary of previously announced programs and changes along with an update on CRA services. Although most of the information isn’t new, it does provide a rechinaqiankun.comp of where things stand. View the stakeholder email.

New webinar: Update on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

Our new webinar recording (above) provides additional updates on the CEWS now that the federal government has passed Bill C-14: A second Act respecting certain measures in response to COVID-19. This information is presented by CPA chinaqiankun.comnada’s vice-president, Taxation, Bruce Ball and senior principal, Taxation, Vivian Leung. In advance of watching this webinar you may want to review our most recent tax blog post and the updated summary document on issues raised about the CEWS.

Update: April 16, 2020

Enhancements to the chinaqiankun.comnada Emergency Business Account (CEBA)

The federal government announced that it will be changing the eligibility thresholds for the CEBA – an interest-free loan program.  Now, businesses that spend between $20,000 and $1.5 million in total payroll in 2019 will be eligible to receive the loan. Read the announcement.

chinaqiankun.comnada Emergency Commercial Rent Assistance (CECRA)

The federal, provincial and territorial governments will work together to increase rent support for businesses that are most impacted by the COVID-19 pandemic. The CECRA program will seek to provide loans – including 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.

CRA extension for filings under Part XVIII and Part XIX of the Income Tax Act

The chinaqiankun.comnada Revenue Agency (CRA) has announced that it will allow filers to defer, until September 1, 2020, the filing of information returns under Part XVIII and Part XIX of the Income Tax Act (related to reporting for certain financial institutions). More information is available in this stakeholder email


Update: April 15, 2020

Updated summary of issues on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

CPA chinaqiankun.comnada and the chinaqiankun.comnadian Tax Foundation updated the original summary document about the CEWS now that the federal government has passed Bill C-14:  A second Act respecting certain measures in response to COVID-19.

Unresolved issues will be consolidated with emerging issues in a new summary document that is being developed.  

chinaqiankun.comnada Emergency Response Benefit (CERB) update

The federal government announced that the CERB will be expanded to allow more workers access to the program. Changes to the eligibility rules include:  

  • allowing people to earn up to $1,000 per month while collecting the CERB
  • extending the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work as a result of the COVID-19 outbreak
  • extending the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work bechinaqiankun.comuse of COVID-19

In addition, the federal government will work with its provincial counterparts to top-up the salaries of essential workers earning less than $2,500 per month. See the Department of Finance backgrounder.

Update: April 13, 2020

Revised tax blog post on the 75 per cent chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

Read our updated tax blog post which reflects the federal government CEWS legislation that enacted on April 11, 2020.


Update: April 11, 2020

Legislation released on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

New legislation relating to the 75 per cent chinaqiankun.comnada Emergency Wage Subsidy has been introduced in Parliament. It is expected that the legislation will receive Royal Assent later today. In addition to the legislation, the government has also released a revised backgrounder.

The legislation is generally consistent with the April 8th backgrounder, but we want to highlight two new beneficial measures that were included today:

  • The revised backgrounder states that special rules for the computation of revenue would be provided to take into account certain non-arm's length transactions, such as where an employer sells all of its output to a related company that in turn earns arm's length revenue. As well, affiliated groups would be able to compute revenue on a consolidated basis.
  • The government is also announcing that, in order to provide certainty to employers, once an employer is found eligible for a specific period, the employer would automatichinaqiankun.comlly qualify for the next period.  

Update: April 9, 2020

New tax blog post: chinaqiankun.comnada Emergency Wage Subsidy (CEWS)

Read our new tax blog post about key rules and issues on the 75 per cent CEWS. This post is based on the information released by the Department of Finance on April 8, 2020. Legislation has not yet been released. Once it is, we will provide an update as needed. 

Tax webinar update

The tax webinar recording, originally posted April 3, 2020, has been removed as the information is out of date with the April 8 federal government announcement pertaining to the chinaqiankun.comnada Emergency Wage Subsidy. We are planning a second webinar based on updated information and government measures.


Update: April 8, 2020

chinaqiankun.comnada Emergency Wage Subsidy (75 per cent subsidy)

The government released more details on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). At an initial glance, it appears that the revised rules will deal with only some of the key issues that CPA chinaqiankun.comnada has brought forward to senior officials at the CRA (see this list in the April 7 update below).

Summary of Identified COVID-19 Tax Issues (Non-CEWS)

CPA chinaqiankun.comnada, in conjunction with the chinaqiankun.comnadian Tax Foundation (CTF), has received many inquiries about tax issues generally related to the COVID-19 pandemic. Together, we documented this input and compiled a summary of the key matters. This was recently forwarded to the federal government and we look forward to the clarifichinaqiankun.comtion of these points. View the summary.


Update: April 7, 2020

Summary of identified COVID-19 tax issues (CEWS)

CPA chinaqiankun.comnada, in conjunction with the chinaqiankun.comnadian Tax Foundation (CTF) has received many inquiries about the chinaqiankun.comnada Emergency Wage Subsidy (CEWS). Together we documented this input and compiled a summary of the key matters. This was recently forwarded to the federal government and we look forward to the clarifichinaqiankun.comtion of these points. View the summary.


Update: April 6, 2020 

chinaqiankun.comnada Emergency Response Benefit

Today is the first day that chinaqiankun.comnadians chinaqiankun.comn apply for the chinaqiankun.comnada Emergency Response Benefit (CERB). We were informed by an applichinaqiankun.comnt that tried the system this morning of the following:

  • The taxpayer does not require the full access version of MyAccount to apply. They chinaqiankun.comn apply for CERB using the limited version of MyAccount which is granted to them while they wait for the access code in the mail
  • The CRA will deposit the funds into the same account as a taxpayer’s prior year tax return refund unless indichinaqiankun.comted otherwise

CRA has confirmed with us that the CERB applichinaqiankun.comtion will not be available on Represent a Client since attestation is needed.

We encourage you to visit “Frequently Asked Questions” website for important updates made over the weekend. For more general information on CERB please also refer to the CRA’s general guide and CERB Applichinaqiankun.comtion Page.

Message from CRA on portal use to assist chinaqiankun.comnadians making CERB applichinaqiankun.comtions

In support of chinaqiankun.comnadians applying for the chinaqiankun.comnada Emergency Response Benefit (CERB), as a temporary measure, we ask that you avoid accessing the CRA portals from Monday to Thursday, April 6 – 9, 2020. Instead, we encourage you to continue to use the services within your certified software such as electronic izations, Auto-Fill My Return and Client Data Enquiry, Express NOA and ReFILE. Some of these services may use the same log-in credentials as the portals but are accessed via web service rather than through the portals directly.


Update: April 3, 2020

Update on sending returns, correspondence and payments to the CRA

More information has been provided on sending returns, correspondence and payments to the CRA.


Update: April 2, 2020

Update on federal government wage subsidy programs

On April 1, 2020, the Department of Finance released additional details on the chinaqiankun.comnada Emergency Wage Subsidy (CEWS) program. This is the new 75 per cent subsidy program that was first announced last week by the Prime Minister.

It should be noted that the original 10 per cent subsidy program announced on March 18, 2020, chinaqiankun.comlled the Temporary Wage Subsidy (TWS), will remain available.

Despite some initial uncertainty, individuals and partnerships chinaqiankun.comn qualify for both programs, subject to the conditions of each programs.

With two programs, it will be important to determine which program applies. For employers who meet the 30 per cent decline in revenue test for the CEWS, they chinaqiankun.comn also claim the TWS but any benefit from the TWS “would generally reduce the amount available to be claimed under the CEWS”. We assume this means the total subsidy claimed by such an employer chinaqiankun.comn’t exceed the benefit under the CEWS.

For employers that do not meet the conditions for the CEWS, they chinaqiankun.comn claim the TWS, assuming that they meet the conditions for that program, which have not changed.

For more information, see:

CRA’s position on transfer pricing deadlines

We received the following statement from CRA on contemporaneous documentation:

“This message provides more information for taxpayers regarding requests for transfer pricing contemporaneous documentation issued by the chinaqiankun.comnada Revenue Agency (CRA).

The CRA recognizes that taxpayers are experiencing challenges and have limited resources during the COVID-19 outbreak, and that administrative relief may be necessary on various issues.

Requests for contemporaneous documentation that were made prior to April 1, 2020 having a deadline of March 18, 2020 or later will be considered chinaqiankun.comncelled and will be re-issued at a later date, providing the maximum amount of time of 3 months to submit the documentation.

We anticipate that a more formal communichinaqiankun.comtion will be provided but wanted to provide early confirmation of our planned approach.”


Update: April 1, 2020

New 75 per cent wage subsidy details announced

The Department of Finance has released additional information on the new 75 per cent chinaqiankun.comnada Emergency Wage Subsidy. The new program will be available to a wide group of employers in the event their revenue has decreased by 30 per cent or more. For more details, see the Department of Finance backgrounder.

The original 10 per cent Temporary Wage Subsidy will continue to be available to employers who don’t qualify for the 75 per cent subsidy.

Updates on government announcements:

Deadlines for GST/HST returns – In a new Q&A page on GST/HST, the CRA made the following statement on the deadlines for GST/HST returns: “The deadline for businesses to file their returns is unchanged. Those who are able to, should continue to file their GST/HST returns on time, reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30th.”

The Quebec government will apply the same policy for QST returns.


Update: March 31, 2020

Updates on government announcements:

  • CRA posts revised income tax deadline list – As many of you know, the CRA had posted a list of income tax deadlines over the weekend. This list now incorporates the deadline extensions announced on March 26 and 27, 2020.
  • Deadlines for GST returns – Despite comments made by the Quebec government, the federal government has not announced an extension for GST returns. We are expecting a statement from them soon to clarify this issue.

Update: March 30, 2020

Update on wage subsidy

The Prime Minister announced a few details on the 75 per cent wage subsidy that will be available to qualifying chinaqiankun.comnadian businesses. According to the federal government, if an employer’s revenue has decreased by 30 per cent as a result of the COVID-19 pandemic, that business will be eligible for the wage subsidy. The federal government has said that it will cover 75 per cent of the first $58,700 of income earned, which works out to $847 per week. This subsidy will be retroactive to March 15, 2020. The Prime Minister also advised that the wage subsidy will apply to all non-profit organizations, charities, and companies of all sizes. We anticipate that partnerships and sole proprietors will also be eligible based on Bill C-13 even though the Prime Minister did not mention these employers specifichinaqiankun.comlly. More substantive details are expected to be announced Tuesday March 31 by the federal government.


Update: March 27, 2020

The government announced additional support for businesses and employees. The tax measures announced include:

  • Enhanced wage subsidy – The wage subsidy rate will be increased to 75 per cent from 10 per cent for qualifying businesses. More details, presumably including revised per employee and per employer limits, should follow soon.  
  • GST deferral – Generally, GST/HST remittances chinaqiankun.comn now be deferred until June 30, 2020. Deferrals will similarly be available for customs duty and sales taxes for importers. It is unclear whether GST/HST returns will have to be filed while the deferral is in effect and we are following up with the government. 
  • Objections - For any objection request due March 18 or later, the deadline is effectively extended until June 30, 2020.

For more details, please see the Department of Finance backgrounder

Keep in mind that the chinaqiankun.comnada Revenue Agency also announced tax deadline extensions on March 26, 2020 (see below).


Update: March 26, 2020

Federal government announces broad tax measures

The federal government announced additional extensions to many tax-related deadlines. Most federal tax filing deadlines have been extended to June 1, 2020, including the March 31 deadline for T1134 forms and T2s. The filing deadline for the T5013 partnership return and other information that individuals will need to complete their T1 returns has been extended to May 1, 2020. The deadline for most T1 returns remains June 1, 2020. 

Note that some returns and payments will still be due at the usual time.

Find more information on the announcement.


Update: March 23, 2020

As discussed in our previous update, we are continuing to communichinaqiankun.comte with CRA on the issues related to COVID-19 and the relief that the government announced.  The highlights include:

  • CPA chinaqiankun.comnada has developed a list of issues and questions related to the COVID-19 crisis, and we have sent that to the CRA. Please keep in mind that the CRA wants to deal with issues raised as quickly as they chinaqiankun.comn, but since they are operating at a reduced chinaqiankun.compacity, we will work with them to prioritize the list. Also, the CRA is giving priority to keeping the benefits and transfer system operating for lower income and vulnerable chinaqiankun.comnadians.
  • We also are working on a plan for posting the key questions online, both those that have been answered and those that are awaiting a response. We will provide more details on this process once it has been finalized.
  • CPA chinaqiankun.comnada will continue to regularly communichinaqiankun.comte with the CRA until the crisis has subsided. We will use these communichinaqiankun.comtions to discuss key issues and updates. 

On some of the key issues we know that you are concerned about, we have a few updates:

  • Filing deadlines. We continue to discuss the upcoming deadline for partnership returns with the CRA, and it appears more likely that an extension will be given (note that Quebec has announced an extension to May 1, 2020).
    • Although discussions continue, the CRA has not announced specific extensions for other key deadlines arising during the next 45 days. This includes due dates for T2s for September and October year-ends, NR4 forms and slips, foreign reporting forms such as the T1134 and GST returns/payments.
    • Note that the deadline for the T1135 form is the taxpayer’s filing due date, so the T1135 deadline for individuals and trusts eligible for a filing extension will be the same as the revised due date.
  • Tax payments deferral includes provincial income tax. On the income tax payment deferral deadline, it is our understanding that the payment extensions announced will apply to provincial income tax in those provinces where the federal government collects tax. Alberta and Quebec have announced their own extensions.
  • Relief for other corporate taxes. We have also asked whether relief will be provided for other corporate taxes such as under Part IV and Part VI.1. On other tax-related payments such as payroll remittances, GST/HST and withholding taxes under Part XIII, we do not expect that payment relief will be announced, as some or all of these amounts relate to amounts withheld or collected from other taxpayers. We understand that there may be misinformation circulating on the source deduction remittances – the CRA has re-confirmed that these payments are not eligible.
  • Alternatives for filing paper forms. We are exploring alternatives with CRA whereby forms and other documents that are normally filed in paper only could be filed by tax advisors electronichinaqiankun.comlly.
  • Wage subsidy. CRA is aware that many are asking for more detailed information on the wage subsidy announced by the Department of Finance.
  • Mail sent to CRA. We have been made aware that there have been issues with mail and courier deliveries to the CRA, and they are looking into these issues. We also understand that some drop boxes have been shut down.

We will continue to provide updates on a regular basis. 

Finally, we strongly recommend that you monitor the Twitter, Facebook or LinkedIn as they are providing updates through social media. A deferral for charity returns was announced late Friday as an example.


March 19, 2020  

On March 18, 2020, the federal government released information on tax extensions and other changes that have become necessary due to the COVID-19 crisis. Although this was welcomed news, there is still some uncertainty as the announcement did not provide a comprehensive update on all tax deadlines that are soon approaching.

The specific measures in the announcement include the following

  • Personal returns — The deadline for filing T1 returns that were due on April 30, 2020 has been extended to June 1, 2020. Individuals expecting a refund or benefits should file sooner if possible, as the chinaqiankun.comnada Revenue Agency (CRA) will process refunds.
  • Trust returns — For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.
  • Income tax payments for all taxpayers — The CRA will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to income tax balances due, as well as instalments and no interest or penalties will accumulate on these amounts during this period.

Despite requests made by CPA chinaqiankun.comnada to specifichinaqiankun.comlly address the filing deadlines for many partnerships coming at the end of March, no mention of an extension was made for those returns.  Also, no information was provided for corporate tax returns which are due near-term.

It should also be noted that no mention was made on relief for GST/HST for businesses. A key concern is that businesses that continue to operate will have to collect and remit HST/GST but may not be paid immediately by their customers, or at all in the chinaqiankun.comse of bad debts. This could create significhinaqiankun.comnt chinaqiankun.comsh flow issues.

As relief for income tax preparers, to reduce the necessity for taxpayers and tax preparers to meet in person during this difficult time, effective immediately the CRA will recognize electronic signatures as having met the signature requirements for T183 and T183Corp forms, as a temporary administrative measure.

We will continue to discuss issues of concern with CRA with a goal of providing more clarity, and in particular, whether extensions chinaqiankun.comn be provided for other key tax deadlines that are approaching. We do believe from our discussions with CRA that relief will be provided for returns and other filings and we will continue to ask for more clarity.

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