Working From Home
Real Estate Projects: Watch Out!
Loans For Value: Income Splitting Tool
OAS Deferral: Undoing an Application
Employment Insurance: Voluntary Departure
Changes to Payroll: Correcting Errors
Video Conferencing Tips
Tax Tips and Traps 131, 2020 – 3rd Quarter
The CRA has provided some additional guidance regarding the personal tax filing deadline.
As previously announced, individuals who previously had a personal income tax filing deadline of April 30, 2020 has had their deadline extended until June 1, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 1, 2020.
It is important to note that if you or your spouse are self-employed, you still have until June 15, 2020 to file your taxes. In both of these situations your payment deadline has been extended to September 1, 2020.
This payment extension also applies to installments typically due June 15, 2020, and no interest or penalties will be charged for this payment if it is made before the extended deadline of September 1, 2020.
It is still recommended that individuals file their personal tax return even though there will be no interest or penalties for late filing as it could impact your credit payments including the GST credit. You will still continue to receive payments based off of your 2018 return, but to ensure that you will receive the right amounts it is important to file by the deadline. This also applies if you are entitled to a refund, filing on time will ensure that you get your refund as soon as possible.
For more information please see the CRA website for updated information and additional news: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2020/filing-2019-taxes-covid19-crisis.html?utm_source=mediaroom&utm_medium=eml
Are you planning on applying for the Canada Emergency Wage Subsidy (CEWS) but are unsure how to get access to your CRA My Business Account? The CRA has prepared a short video to help walk business owners through the process of registering for your account.
Please follow the link below to watch the video: https://www.canada.ca/en/revenue-agency/news/cra-multimedia-library/businesses-video-gallery/register-mybusiness-account.html
If you want to get some additional information including calculating your subsidy amount, please go to the CRA website: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html#h-1
Since the beginning of March, restrictions and measures related to COVID-19 have rapidly escalated. On March 18, 2020, the Government of Canada announced a series of measures designed to support the finances of individuals, businesses, charities, and non-profit organizations
COVID-19 Financial Relief for Canadians:
Other Filings and Administration
Federal Government Financial Relief Measures Related to COVID-19
Tax Deadlines & Payments – Summary of Extensions* (as of April 8th, 2020)
COVID-19 Financial Relief for Canadians April 8 2020
As part of Canada’s COVID-19 Economic Response Plan the CRA has extended a number of income tax filing and payment dates to help Canadians during this difficult time.
Some key highlights include:
• Interest and penalties will not be charged if deferred payments are made by September 1, 2020
• Individual filing date extended until June 1, 2020
• All Corporations with a filing date after March 18, 2020 and June 1, 2020 has been extended to June 1, 2020
• Trusts with a year end date of December 31, 2019 have a filing date extension to May 1, 2020
• Trusts with typical due dates in April or May have been extended until June 1, 2020
For additional information on these and other filing and payment extensions please see the CRA website:
Do you feel like there are constant updates and announcements from the Government?
Wanting to know more about how the tax deadlines have changed and what that means to you?
Are you looking for some resources related to working at home for the first time?
Don’t worry because CPA Canada has been working to compile resources for CPAs during the COVID-19 situation!
These resources can help provide valuable resources for both professionals as well as our clients in staying up to date with all of new and changing information.
We recommend that you take a look at the CPA Canada website for updates and additional information.
In response to the difficulties that businesses are facing in light of the COVID-19 situation, both the Ontario Government and WSIB have announced relief plans offering support to Ontario businesses.
- Increasing the Employer Health Tax (EHT) exemption for 2020 to $1 Million (previously $490,000)
- Implementing a relief period for Ontario business for filing and remitting provincial taxes due to circumstances related to COVID-19
- Allowing businesses to defer premium reporting and payments until August 31, 2020 for WSIB payments
Please see the following websites for more information regarding the changes to the Employer Health Tax and WSIB.
Changes to EHT: https://www.fin.gov.on.ca/en/tax/eht/index.html
Changes to WSIB: https://www.wsib.ca/en/novel-coronavirus-covid-19-update
The Charities Directorate has announced several changes as part of the government’s new action plan, and the Directorate has suspended all operations until further notice. There are new digital services available to fill the needs of charities however, that will hopefully offset the pause in functions.
The full announcement can be found on the Canadian Government Charities website; https://www.canada.ca/en/services/taxes/charities.html
It was announced that The Government of Canada has made some significant moves in their attempt to help Canadians during this outbreak.
Graham Scott Enns would like to draw your attention to the following document published by Video Tax News regarding some of the changes that have a specific impact on taxpayers.
Areas of interest include:
Other Filings and Administration
Closing & Webpages to Monitor
Key Points Canada’s COVID-19 Economic Response Plan March 18 2020
Please review the year-end tax planning document below for tips.
2019 YE Tax Planning Doc – TTT
The 2019 personal income tax return checklist has valuable information for all clients.
2019 Personal Income Tax Return Checklist