| We are writing this blogpost as we know it may be beneficial for you and your family. If any of the information is applicable act on it. Here is a list of a number of measures announced so far by the federal and provincial government to aid Canadians during the COVID-19 pandemic. Canadian personal tax return filing deadline is extended to June 1st. GST/HST returns still need to be filed by the normal due date. Even if you cannot pay your amount owing, please file to ensure penalties are avoided. T4 Employees who have been laid off should apply for regular EI benefits. There is a 28 day waiting period for EI. You do not need your ROE from your employer to apply. Non-T4 Employees (contractors, self-employed individuals, business owners, casual labourers etc…) who are unable to work during this time can apply for the Canadian Emergency Response Benefit online starting in April. This will pay $2,000 a month for up to 4 months. Businesses who need capital during this period can apply for loans through the Business Development Bank of Canada (www.bdc.ca) Please make sure you are filed up to date on all your corporate and personal taxes if you are looking to apply for any type of benefit! The last thing we want to see happen is that your application to receive support is held up because the government makes up-to-date filings a condition precedent of receipt. Here is the link to the CERB information page: https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html Mortgage companies will defer your payment up to 6 months on a case-by-case basis. Please call them ASAP if you think you will need to do this. One client I just spoke to recounted his experience yesterday on the phone with CIBC: in only a few short minutes they proceeded to defer the mortgage payments on all 4 of his rental properties and his principal residence for up to 6 months. Please note: Interest will continue to accrue and will be added to the principal balance. This could be the biggest financial crisis of our lifetime. That is not hyperbole, it is the absolute consensus among economists, banks, and financial experts. We would do well to remember the lessons of the 2008 recession, and indeed the lessons of every recession: your hedge is not assets or speculative gains, it is INCOME. Plan your investment strategy accordingly. Measures to Help Businesses Weather COVID-19 Pandemic (in details). Wage Subsidy Payroll Increase – UPDATED The previously announced wage subsidy, designed to help employers cover their workers’ wages, will be raised from 10 percent to 75 percent, and will be backdated to March 15. Businesses and non-profit organizations seeing a drop of at least 30 percent in revenue due to COVID-19 will be able to qualify for the government’s 75 percent wage subsidy program. The government is hoping employers will be able to keep workers on payroll or rehire those that have been laid off. All impacted businesses, big and small, will qualify. The government will cover up to 75 percent of a salary on the first $58,700 which could mean payments of up to $847 a week for each employee. Businesses are encouraged to top up their employees’ wages with the remaining 25 percent of the salaries. The federal government mentioned that this program must operate on a basis of good faith and trust, and serious consequences will be faced by companies who decide to misuse or abuse this program. Canada Emergency Response Benefit (CERB) – UPDATED To support workers who lost their job due to the COVID-19 pandemic, the federal government has introduced legislation to establish the Canada Emergency Response Benefit (CERB) which combines the previously announced Emergency Care Benefit and Emergency Support Benefit into one simpler and more accessible program. CERB is a taxable benefit that will provide $2,000 a month for up to 4 months for workers who lose their income as a result of the COVID-19 pandemic and covers Canadians who have lost their job, are sick, quarantined or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, contract workers and self-employed individuals who would otherwise not be eligible for EI. The portal for accessing the CERB will be available in early April. Canada Emergency Business Account (CEBA) Ottawa is also launching a new loan program – Canada Emergency Business Account – whereby banks will be able to offer $40,000 loans, guaranteed by the government and interest-free for the first year, to qualifying businesses. If businesses meet certain conditions, $10,000 of that loan will be forgivable. In addition, the government will be providing $12.5 billion to Export Development Canada and the Business Development Bank, to help small and medium-sized businesses with their cash flow requirements when applying for loans. GST and HST Payment Deferrals The federal government has announced they will defer GST and HST payments, plus duty and taxes on imports, until June, allowing businesses to use this money to pay for immediate expenses. Even with all of the tools and technology available to keep us connected, many of us are still feeling stressed, scared, and isolated. However, you can rest assured that you are not alone. We’re not only here to help you buy and sell real estate. We want to be a resource to our clients and community through good times and bad. If you and your family are in need of assistance, please reach out and let us know how we can help. We will keep you posted and monitor all changes happening around us. Stay healthy and safe, Regards, Nikolay and Tatiana |