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To support businesses that are facing revenue losses and to help prevent lay-offs, the subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Businesses will be able to benefit IMMEDIATELY from this support by REDUCING THEIR REMITTANCES OF INCOME TAX WITHHELD on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
TAXES & AUDITS
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.
ACCESS TO CREDIT
The Business Credit Availability Program (BCAP) will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses.
The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.
The Bank of Canada also took a series of actions, including cutting the interest rate to 0.75% as a proactive measure in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices.
CANADA ACCOUNT and EDC
The Canada Account is administered by Export Development Canada (EDC) and is used by the government to support exporters when deemed to be in the national interest. The access to this account by the Minister of Finance will allow the government to provide ADDITIONAL SUPPORT to Canadian companies through LOANS, GUARANTEES or INSURANCE POLICIES during these challenging times.
Many thanks to Irmina M Koza, Chartered Professional Accountant for sharing this info: https://www.facebook.com/IrminaMKoza
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