SEPTEMBER 2023 - Recent update regarding the Canada Emergency Business Account (CEBA) loan repayment deadlines
On September 14, 2023, the Prime Minister announced extended deadlines for Canada Emergency Business Account (CEBA) loan repayments, providing an additional year for term loan repayment, and additional flexibilities for loan holders looking to benefit from partial loan forgiveness of up to 33 per cent.
Extended Repayment Deadlines: The repayment deadline for CEBA loans to qualify for partial loan forgiveness of up to 33 per cent is being extended from December 31, 2023, to January 18, 2024, recognizing that the end of December is a busy time for many Canadian businesses. This builds on the government's previous one-year extension announced in January 2022.
Refinancing Opportunity: For CEBA loan holders who make a refinancing application with the financial institution that provided their CEBA loan by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness now includes a refinancing extension until March 28, 2024. This will allow more small businesses and not-for-profits to access relief and give them more time to hear back from their financial institutions on refinancing applications.
Loan Conversion to a 3-year term loan: As of January 19, 2024, outstanding loans, including those that are captured by the refinancing extension, will convert to three-year term loans, subject to interest of five per cent per annum, with the term loan repayment date extended by an additional year from December 31, 2025, to December 31, 2026. Small businesses will automatically have access to a three-year, low-interest loan of up to $60,000 if they have not repaid or refinanced their loan. This will provide those who are unable to secure refinancing or generate enough cashflow to repay their loans by the forgiveness deadline an additional year to continue repayment at a low borrowing cost.
Loan Forgiveness: Repaying your CEBA loan on or before the new deadline of January 18, 2024 (or by March 28, 2024, if you submit a refinancing application before January 18, 2024), will make you eligible for loan forgiveness. For a $40,000 loan, you can receive $10,000 in partial loan forgiveness, and for a $60,000 loan, you can benefit from $20,000 in partial loan forgiveness.
MARCH 2023 - Due to challenges on their end, the government has extended the filing deadline for the UHT return until October 31, 2023.
MARCH 2023 - The Underused Housing Tax (UHT) is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners. The deadline for this new tax return is April 30th and carries with it a $10,000 non-filing penalty. Please contact the office if you are a non-resident or your corporation owns a residential or mix residential property to find out if you are required to file this new tax return. https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
JANUARY 2023 - Starting in April 2023, first home savings account (FHSA) will be available to first time home buyers. There both an annual and a lifetime contribution limit. See government website for more information.
OCTOBER 2022 - The government has now made it mandatory to register for My Business Account in order to submit authorization requests for our office to speak to the government on your behalf. If you need assistance with setting this up, please contact our office.
PERSONAL TAXES 2021 - What's new in personal taxes for 2021? Click here
FEBRUARY 2022 - CEBA Loan Repayment Deadlines have changed. The repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended to December 31, 2023, for all eligible borrowers in good standing
JANUARY 2022 - CEWS and CERS are finished and new programs for Tourism and Hospitality Recovery Program (THRP) and Hardest-Hit Business Recovery Program (HHBRP) are now available. However, these two new programs are much harder to qualify for.
Applications are now open for these new programs.
JUNE 2021 - Proposed in budget - Canada Recovery Hiring Program (CRHP) - Employers would have to choose between receiving CRHP or CEWS.
MAY 2021 - The chartbelow is for informational purposes only. Please read the official website(s) or contact the government for full eligibility criteria.
March 2021 - Home office expenses for employees has two methods. First is the regular detailed method where you claim the actual amounts your paid, supported by documents and you must have a signed T2200 or T2200S by your employer. The second method is new for eligible employees working from home in 2020 due to the COVID-19 pandemic. In this method you get a flat $2/day to a maximum of $400 for each you worked from home. You do not need to keep supporting documents and you do you need a signed T2200.
December 23, 2020 - The Ontario government is announcing the new Ontario Small Business Support Grant, which will provide a minimum of $10,000 and up to $20,000 to help small business owners during this challenging period. Details on how to apply to be announced in January 2021. https://www.news.ontario.ca/en/backgrounder/59788/post-4
October 9, 2020 - Federal and Provincial COVID-19 Announcement:
- Rent subsidy (CERS) - new until June 2021 - provided directly to tenants. Would support businesses that have a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a max of 65% of eligible expenses until Dec 19, 2020. Claims can be made retroactively for the period that began September 27th and ends October 24, 2020. A top up emergency rent subsidy of 25% for organizations temporarily shut down by a mandatory public health order. This is in addition to the 65%.
- Wage subsidy (CEWS) - extended until June 2021 - remains at the current subsidy rate of up to a maximum of 65% of eligible wages until December 19, 2020.
- Interest Free Loan (CEBA) - expanded access to an additional 20k loan, 10k of which is forgivable if repaid before December 31, 2022. Again this is interest free. Further details on this to follow
August 31, 2020 - The application deadline for the Canada Emergency Business Account (CEBA) is extended from August 31 to October 31, 2020.
July 15, 2020 - Canada Emergency Wage Subsidy (CEWS) - The Government announced that the CEWS will be extended to the end of December 2020.
June 24, 2020 - Canada Emergency Wage Subsidy (CEWS) - The Government announced on May 15, 2020 that the CEWS would be extended by an additional 12 weeks, to August 29, 2020. The eligibility criteria will apply for the current period (period 4). Any potential changes would commence as of periods 5 (July 5 to August 1) and/or 6 (August 2 to August 29).
April 25, 2020 - Canada Emergency Commercial Rent Assistance (CECRA) - This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.
The government is also providing further details on the program:
- The program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
- The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.
- Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
April 22, 2020 - CEWS UPDATE (75% Wage Subsidy) - Applications will be accepted starting on April 27, 2020. If you have not previously signed up for CRA's "My Business Account" it is best to do that as soon as possible. It is also suggested to sign up for direct deposit, as you will receive the subsidy quicker if it is deposited directly.
Link for CEWS included a government calculator to help in calculating the amount of the subsidy you are entitled to.
April 16, 2020 - New Announcements from Government -
1) CERB: You are now allowed to earn up to $1000 per month and still qualify for the payments.
2) CEBA: The payroll qualifications for the loan has been changed. You now can apply if payroll is between $20K and $1.5M (from $50K-$1M).
3) CECRA (New): Introduction of the Canada Emergency Commercial Rent Assistance. Will see to provide loans to commercial property owners who in turn lower or forgo rent of small businesses. (No details yet on applications for these loans).
April 8, 2020 - Canada Emergency Wage Subsidy (CEWS)- The 75% wage subsidy has an updated qualification. For the first month of the subsidy, the company needs a 15% sales decrease over the propr year, (versus originally a 30% decline was needed).
Eligible employers would be able to apply for the CEWS through the Canada Revenue Agency’s My Business Account portal as well as a web-based application. More details about the application process are not yet available. https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
- a 75 per cent wage subsidy for qualifying businesses, for up to 3
months, retroactive to March 15, 2020.
- Deferred HST payments for March, April and May remittances until June 30, 2020
- The new Canada Emergency Business Account will provide funding to eligible
financial institutions so that they can provide interest-free loans in the form of
lines of credit of up to $40,000 to businesses with payrolls of less than $1 million.
A quarter of this loan (up top $10,000) is eligible for complete forgiveness.
March 27, 2020 - Businesses: WSIB financial relief package - The financial relief package allows businesses to defer premium reporting and payments until August 31, 2020. Businesses who report and pay monthly, quarterly or annually based on their insurable earnings are eligible for this deferral. https://www.wsib.ca/en/financialrelief
March 18, 2019 - Climate Action Incentive (CAI) Payment - This payment will reduce any taxes owing and may increase your refund. The CAI payment is available to residents of Ontario and a couple other provinces and the calculation of the payment depends on your family composition. There is also a supplement available for residents of small and rural communities. If you qualify for the payment, you will find the amount on Line 449 of your personal taxes.
February 22, 2017 - Starting for the 2016 year, it is now required by the government to report the disposal of your principal residence on your taxes. If you did dispose of your principal residence, please notify us immediately as an adjustment will have to be made to your return.
September 1, 2014 - Ontario employees who earn over $150,000 annually will begin to pay more provincial tax. On July 14th, Ontario introduced a bill which confirms that a personal income tax rate increase will apply to all of the income earned by these employees in the 2014 tax year.
Impact on Withholdings: Although the tax rate increase publicized in the Budget is 1% or 2%, because the tax increase will be in effect for only the last 4 months of 2014, employees in the above income range will notice a 3% or 6% increase in their actual Ontario tax withholdings during the September to end of December period.
April 2014 - Due to the fact that CRA shut down it's system for 5 days during April this year (because of the Heartbleed Bug), the filing deadline has been extended until Monday May 5, 2014. The extension is for filing as well as payments.
Per CRA's website, Social Insurance Numbers (SIN) of approximately 900 taxpayers were removed from CRA systems by someone exploiting the Heartbleed vulnerability.
CRA will be sending registered letters to the affected individuals. CRA does NOT email.
February 2014 - T1135 Foreign Reporting Requirement - The 2013 Budget enacted increased reporting requirements for Foreign property. If you own foreign assets with an aggregate cost in excess of CDN $100,000, you are required to file a form T1135. While it is easy to recall owning foreign real estate, this also applies to investments in foreign corporations and cash held in foreign bank accounts. Please review your investment portfolio with your financial planner to see if you are required to file a form T1135. The deadline for filing T1135's has been extended until July 31, 2014 to allow you time to meet with your financial planner and complete the required paperwork. Failure to file a required form when due or to disclose the relevant information can result in financial penalties.
November 2013 - Credit Card Receipts (NOT ENOUGH) - Keeping receipts is important for corporations, self-employed individuals, and individuals with employment expenses. Please be advised that CRA will not accept a credit card approval receipt as the only documentation to backup an expense or hst claim, unless it shows in detail what was purchased, the hst charged and the hst number of the seller. We find that in general receipts from gas stations show the required information; however, not all approval receipts show what is required. It is a good business practice to look at the receipt provided to make sure it is detailed and shows the sellers HST number. Any expense or HST claim that only has the credit card approval as backup will be disallowed by CRA on audit.
Please download our example of allowed and disallowed receipts.
January 2012 - There are new Accessibility Standards and reporting rules for the Ontario Government. Do you have over 20 employees? Are you up to date on your filings? Please contact our office to set up a consultation or see the government website - www.ontario.ca/onesource