Tax Relief Measures

At Lazer Grant, we are following National Health guidelines and taking extra measures to protect our team, our clients and the public from the spread of the Covid-19 virus.  We will continue to serve our clients as best we can.

Effective immediately our reception area will be on reduced hours, from 9 AM to 1 PM, Monday to Friday.  To help with social distancing, there will be a drop box just outside our office front door for deliveries.

Our team members are encouraged to work from home.  Virtual meetings will replace many of the now face-to-face meetings.

Our IT team has done an amazing job leveraging technology so that our clients see minimal interruptions to service.  If you have documents to send us, please send them electronically.  If you do not have a Lazer Grant portal or need assistance with it, please call.

The following is a brief summary of announced measures to reduce the financial impact of the pandemic.

For businesses:

  1. CRA has announced that tax balances and instalments that are owing on or after March 18, 2020 are not subject to interest or penalties until September 1, 2020.  This does not apply to GST, PST or source deductions that are due.
  2. Payroll relief is available for businesses eligible for the small business deduction.  The subsidy is:
  3. 10% of remuneration paid up to a maximum of $1,375 per employee, and $25,000 per employer;
  4. the duration is for a three-month period;
  5. the subsidy can be implemented by reducing the income tax remittance withheld from the employees’ pay;
  6. https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html#h2.
  7. Manitoba Finance is extending April and May deadlines by up to two months for small- and medium-sized businesses with monthly remittances of less than $10,000.  This applies to retail sales tax and health and post-secondary education tax.   https://www.gov.mb.ca/finance/taxation/bulletins.html
  8. BDC is offering working capital assistance to businesses affected by Covid-19.  This link leads to the page to start the process.  https://www.bdc.ca/en/pages/special-support.aspx?special-initiative=covid19
  9. Export Development Canada and Farm Credit Canada are also taking additional measures to provide loans or guarantees.

We recommend you have current financial information to help get through the process quickly.  This includes:

  • most recent year-end financial statements;
  • year-to-date income statement, balance sheet, and up-to-date aged accounts receivable and accounts payable ledgers;
  • income and cash flow projections for the next year.

For individuals:

  1. The personal tax filing deadline has been extended to June 1, 2020.
  2. Taxes owing on 2019 taxes are not subject to interest or penalties until September 1, 2020.
  3. An increase in the maximum annual Canada Child Benefit payment by $300 per child which will be part of the May payment.
  4. Increasing flexibility for homeowners to defer mortgage payments on CMHC insured loans.  Our observations for this show that the lender will look for evidence of lost income to support the request for deferral.
  5. RRIF required minimum withdrawals are reduced by 25% for 2020.
  6. An emergency care benefit will provide up to $900 bi-weekly for individuals, including the self-employed who are unable to work due to quarantine, or to take care of family members, or are required to care for children due to school closures.  This will be administered through the EI program beginning in April.

As always, the Lazer Grant team is here to help.

New detail is coming daily, and we will do our best to share the information with you.