Greeting for Global Tax Services Clients
We, Global Tax Services Professional Corporation (GTS), are rooting for all business owners who are struggling with the COVID-19 crisis that is hitting Canada. We would like to brief the Canadian Federal Government’s stabilization measures to stabilize the social and economic crisis. The Federal Government is financing $ 27 Billion to be allocated to workers and employers through the COVID-19 Economic Response Plan. In addition, BDC prepares Business Credit Availability Program (BCAP) with commercial banks; $ 10 Billion emergency business funds have been organized for small and medium-sized business owners. We will update as fast as we can as detailed conditions are announced.
- Emergency Working Capital Financing
- Sectors; private businesses (including oil and gas, aviation and travel)
- Host banks of the financing; Business Development Canada Bank and Export Development Canada Bank
- Terms and the interest rates will be announced later.
** For reference, the PEI government already has an emergency operating fund of up to $ 100,000, with the fixed interest rate of 4%, and deferred payment for one year. Ontario government will announce further details.
- Temporary Income Support for Workers and Parents under employment insurance program
- One-week waiving period exemption when quarantine measures apply for EI Sickness Benefit.
- Self-employed and workers who have a sick family of COVID-19 regardless of whether they are eligible for EI.
- If income will be cut off for child-care due to school closing measures regardless of whether eligible for EI.
- Changes for Taxpayers
- Extension of the deadline for filing personal income tax (T1): until June 1 (Mon), 2020
- Extension of tax payment deadline: until August 31 (Mon), 2020.
- E-mail electronic signature available (for T183 and T183Corp) to keep the social distance.
- Wage Subsidy for Small Business (SMEs) owners (including corporations)
A three-month Temporary benefit subsidy will be provided to eligible small business owners to prevent sales loss and lay-off. This includes corporations receiving small business deductions, non-profit organizations (NPO), and charities. Up to 10% of the maximum salary during the period, such business and organization will receive a subsidy grant of up to $ 1,375 per employee and up to $ 25,000 per employer.
- Temporary suspension of CRA audit
GST / HST reviews and audits for SMEs will be suspended for 4 weeks.
- Extension of payment deadline for corporate tax and GST / HST tax
- Extension of the deadline for paying corporate and other taxes: until August 31, 2020
- Extension of payment for installation effective March 18, 2020.
Global Tax Services will inform you further details as soon as the Ontario government announces further details. If you have any inquiries about loans to SMEs, please contact us (GTS). You can email to [email protected] or call 1-866-369-08069 (Toll free) / 905-731-0850 for inquiry and state that you have Federal emergency loan Inquiries.
For your reference, it is highly recommended that you secure enough cashable assets in advance through loans to small and medium-sized enterprises in preparation for the mid- to long-term recession.
Following the social distancing, which is strongly promoted by all governments, you can send your scanned accounting documents via email, [email protected] or your assigned accounting staffs. Global Tax Services can also provide a free business-grade Dropbox for your business, and help you set up a convenient application on your cell phone. For a high-speed scanner to purchase and setup with recommendation, free business-grade Dropbox or a smartphone application setup with downloading support inquiry, please make an appointment in advance before a visit to Global Tax Services. We remind you that large portion of GTS staffs will work-at-home.
We will try our best efforts to reply to you as soon as possible, but please understand that, in March and April, our reply may be delayed due to the busy and heavy workload during this difficult time.
The staffs at Global Tax Services and I sincerely hope the clients will overcome this unprecedented situation.