As many Canadians are going through the health and financial crisis caused by COVID-19, Canadian Government has taken following steps to help Canadian Tax Payers. These steps are temporary and more announcements will come in future if this pandemic continues for a long time.
Effective March 18, 2020 all employers facing revenue losses and to prevent lay-offs government is providing wage subsidy of 10% gross wages during the three month period up to a maximum of $1,375 per employee and $25,000 per employer.
For example if an employer will pay 13,750 in wages to an employee during a period of three months starting from March 18, 2020 will be able to deduct 1,375 in total from the payroll tax remittance for each employee and pay the balance to CRA. Maximum subsidy an employer can receive over these 3 months is 1,375 per employee and $25,000 in total considering all employees.
The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
Dear friends, as our services are classified as essential services we will remain open and continue to help our clients with our services and any questions they may have. However, most of our services are provided remotely with no in- person meetings unless it’s absolutely essential and all precautionary measures are followed. Please be assured our office is following all precautionary measures that are recommended by Public Health Canada including social distancing, use of masks and sanitizers etc. Our clients can drop off their documents and file at the reception or in a drop box with their name on it. Our files are regularly assigned to staff. All the questions and consultations are done via email or phone. We will keep updating our friends and clients with any government announcements and any changes in our operations from time to time until this crisis is over.
Toronto Downtown Office (New)
5700-100 King Street West
Toronto, ON M5X 1A9