COVID-19 – Supports for Businesses
TAX DEADLINES & PAYMENTS
Corporate Tax Filing Deadlines: Corporations that would otherwise have a filing due date after March 18 and before June 1, 2020 to defer their deadline to June 1, 2020. This applies for both Federal and Alberta Corporate Income Taxes. Applies to year-end with a year end of September, October or November 2019. Click here for more information
TAX PAYMENTS DUE
Corporate Taxes (RC accounts): The CRA is allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. This applies for both Federal and Alberta Corporate Income Taxes.
GST (RT accounts): We are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports. Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June.
Payroll (RP accounts): No deferrals, all amounts for source deductions must be reported and remitted with the regular deadlines.
Education property taxes: The collection of non-residential education property tax for businesses will be deferred for 6 months. Deferred amounts will be repaid in future tax years. Commercial landlords are encouraged to pass savings on to their tenants through reduced or deferred payments to help employers pay their employees and stay in business.
WCB Premium Payment: The Alberta government announced immediate financial support to private sector employers to have their 2020 WCB premiums deferred to 2021. When we resume invoicing for 2020 premiums in 2021, small- and medium-sized private sector employers will have 50 per cent of their 2020 premiums waived. Invoices for 2020 premiums have been stopped for the remainder of the year and WCB will refund employers who have already made payments towards their 2020 premiums. Click here for more information
Utility Payments: Small commercial customers can defer electricity and natural gas payments for the next 90 days to ensure no one will be cut off, regardless of their service provider. The program is available to Alberta companies who are experiencing financial hardship as a direct result of COVID-19. Call your utility provider directly to arrange for a 90-day deferral on all payments.
ACCESS TO CREDIT
Business Credit Availability Program (BCAP): The Business Credit Availability Program (BCAP) was established to provide $40 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism. This program includes: Loan Guarantee for Small and Medium-Sized Enterprises, and Co-Lending Program for Small and Medium-Sized Enterprises.
At this time the eligibility and application process has not been released. Further information is expected over the next 3 weeks. At this time we are recommending all clients communicate with their existing financial institutions their needs and possibility of existing credit programs from the bank.
Canada Emergency Business Account (CEBA): The new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.these organizations must demonstrate that they had total payroll between $50,000 and $1 million in 2019. The loan is interest-free and 25% of the loan is forgivable (up to $10,000) if the organization repays the loan on or before December 31, 2022. If the loan is not repaid by that date, the resulting loan terms would be decided by each financial institution. Click here for more information
Since the CEBA is available through an organization’s financial institution, the application process will vary, depending on the methods adopted by that financial institution. It is anticipated the loan application will be available online through the financial institutions online banking portal within the next few days or weeks. To get ready for the release of the application, ensure your bank has the most up to date email and contact information for you, enroll for online banking if you have not already done so and have a copy of your 2019 T4 summary readily available.
Blog posts about COVID-19 – Supports for Businesses
We greatly appreciate KWB’s flexibility with scheduling appointments. Even during the busy tax season, they have graciously arranged meetings that accommodated our busy schedules.