Canada has announced new financial and tax measures in response to COVID-19.
In addition to extending certain tax deadlines, Canada will provide a variety of financial measures for Canadian individuals and businesses affected by the COVID-19 outbreak. In particular, the CRA will delay tax filing deadlines for individuals to June 1, 2020 and for trusts to May 1, 2020. In addition, all taxpayers that owe income tax balances and income tax instalments on or after March 18, 2020 and before September 2020 will now have until September 1, 2020 to remit these amounts. Further, Canada will provide a temporary wage subsidy to help small businesses retain employees and an Emergency Care Benefit to offer financial support to affected individuals.
Businesses and individuals should review these measures, which were announced by Canada’s Prime Minister and Minister of Finance on March 18, 2020, to determine whether they may qualify for government support. In particular, these measures may help businesses maintain their cash flow despite any disruptions caused by COVID-19. As this situation continues to develop quickly, Canada also indicated that it would table emergency legislation to implement these measures, and that further support would be forthcoming, including for industries that are disproportionately affected at this time.
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