Please see below for the latest information on:

• DEFERRAL OF ADMINISTRATIVE INCOME TAX ACTIONS – New!
  • Returns, elections, designations and information requests.
• OBJECTIONS – New!
  • Entitlement to benefits vs. other tax matters.
  • Filing deadline.
• CPP/EI APPEALS TO THE MINISTER – New!
• SUSPENDING AUDIT ACTIVITIES – New!
• SUSPENDING COLLECTIONS ON NEW DEBT – New!
• TAXPAYER RELIEF REQUESTS – New!
• EMPLOYMENT INSURANCE
• CANADA EMERGENCY RESPONSE BENEFIT
• GOODS AND SERVICES TAX CREDIT (GSTC)
• CANADA CHILD BENEFIT (CCB)
• REGISTERED RETIREMENT INCOME FUNDS (RRIFS)
• CANADA STUDENT LOANS
• APPRENTICE LOANS

DEFERRAL OF ADMINISTRATIVE INCOME TAX ACTIONS – New!

Department of Finance / Canada Revenue Agency

Unless otherwise noted, administrative income tax actions required of taxpayers by the CRA that are due after March 18, 2020, can be deferred to June 1, 2020.  These administrative income tax actions include returns, elections, designations and information requests.

OBJECTIONS – New!

Department of Finance / Canada Revenue Agency

Any objections related to Canadians’ entitlement to benefits and credits have been identified as a critical service and will continue to be processed during the COVID-19 crisis. As a result, there should not be any delays associated with the processing of these objections.

With respect to objections related to other tax matters filed by individuals and businesses, the CRA is currently holding these accounts in abeyance. No collection action will be taken with respect to these accounts during this period of time.

For any objection request due March 18 or later, the deadline is effectively extended until June 30, 2020.

CPP/EI APPEALS TO THE MINISTER – New!

Department of Finance / Canada Revenue Agency

In cases where taxpayers wish to file an appeal in relation to CPP/EI rulings decision, they are encouraged to do so through MyAccount to avoid potential delays.

The CPP/EI appeals program is currently only actioning appeals that are related to cases where EI benefits are pending. These cases will be treated on a priority basis. All other appeals will be actioned when normal services resume.

In addition, the CPP/EI Appeals to the Minister program will exercise discretion on a case by case basis when additional time is required to respond to a request.

SUSPENDING AUDIT ACTIVITIES – New!

Department of Finance / Canada Revenue Agency

CRA will not initiate contact with taxpayers for audits, with certain exceptions. This includes:

• no new audits being launched;
• no requests for information related to existing audits; and
• no audits should be finalized and no reassessments should be issued.

SUSPENDING COLLECTIONS ON NEW DEBT – New!

Department of Finance / Canada Revenue Agency

Collections activities on new debts will be suspended until further notice, and flexible payment arrangements will be available.

Payment arrangements are also available on a case-by-case basis if you can’t pay your taxes, child and family benefit overpayments, Canada Student Loans, or other government program overpayments in full.

If you have concerns and require contact with a Collections Officer, please contact our toll free number 1-800-675-6184 between 8:00 a.m. and 4:00 p.m. your local time.

TAXPAYER RELIEF REQUESTS – New!

Department of Finance / Canada Revenue Agency

Taxpayers who are unable to file a return or make a payment by the tax-filing and payment deadlines because of COVID-19 can request the cancellation of penalty and interest charged to their account. Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met. For more information about deadlines, see Helping Canadians with the economic impact of the COVID-19 Pandemic.

For more information about taxpayer relief and how to make a request to the CRA to have interest and/or penalties cancelled, please go to Canada.ca/taxpayer-relief. 

EMPLOYMENT INSURANCE

Employment and Social Development Canada

Employment Insurance (EI) sickness benefits provide up to 15 weeks of income replacement and is available to eligible claimants who are unable to work because of illness, injury or quarantine, to allow them time to restore their health and return to work. Canadians quarantined can apply for Employment Insurance (EI) sickness benefits.

If you are eligible, visit the EI sickness benefits page to apply.

Service Canada is ready to support Canadians affected by COVID-19 and placed in quarantine, with the following support actions:

• The one-week waiting period for EI sickness benefits will be waived for new claimants who are quarantined so they can be paid for the first week of their claim
• Establishing a new dedicated toll-free phone number to support enquiries related to waiving the EI sickness benefits waiting period
• People claiming EI sickness benefits due to quarantine will not have to provide a medical certificate
• People who cannot complete their claim for EI sickness benefits due to quarantine may apply later and have their EI claim backdated to cover the period of delay

Important: If you are directly affected by the COVID-19 because you are sick or quarantined and you have not yet applied for EI benefits, please submit your application before contacting us. This will allow us to better serve you and prevent delays in establishing your claim.

If you have already completed the application for EI sickness benefits whether you are sick or quarantined and would like to have the one-week waiting period waived, call the new toll-free phone number below. It is important to note that no other request will be actioned on this phone line. We will take action only for sick or quarantined clients affected by the COVID-19 for which the application for sickness benefits has been filed.

• Telephone: 1-833-381-2725 (toll-free)
• Teletypewriter (TTY): 1-800-529-3742

If you are experiencing symptoms such as cough, fever, difficulty breathing or you are in self-isolation or quarantine, do not visit or enter any Service Canada office.  As an alternative, you may access our services online or by calling 1 800 O-Canada.

CANADA EMERGENCY RESPONSE BENEFIT  

On March 25, 2020:

• The government announced the Canada Emergency Response Benefit (CERB), which replaces the Emergency Care Benefit and the Emergency Support Benefit.
• The Canada Emergency Response Benefit Act received royal assent, and became law.

The announcement provides general details of the benefit.  The legislation provides specific details on who is eligible for the benefit.

Department of Finance – Announcement

All Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, will be able to receive the CERB.

The CERB will:

• Provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic.  Benefits receive under the program are taxable.
• Cover 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.
• Apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).
• Apply to workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19.

Canadians who:

• are already receiving EI regular and sickness benefits as of today will continue to receive their benefits and should not apply to the CERB.  If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19.
• have already applied for EI and whose application has not yet been processed would not need to reapply.
• are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

Note – it appears that that you cannot receive both CERB and EI benefits for the same period; that you have to choose between them.

Applying for CERB Benefits:

• The portal for accessing the CERB will be available in early April.
• Canadians will begin to receive their CERB payments within 10 days of application. The CERB will be paid every four weeks and be available from March 15, 2020 until October 3, 2020.

Applying for EI Benefits:

• EI eligible Canadians who have lost their job can continue to apply for EI here (https://srv270.hrdc-drhc.gc.ca/AW/introduction?GoCTemplateCulture=en-CA), as can Canadians applying for other EI benefits.

Canada Emergency Response Benefit Act – Legislation

Under the legislation, a “worker” may apply for an income support payment for any four-week period falling within the period beginning on March 15, 2020 and ending on October 3, 2020.  Applications must be made before Dec 03, 2020.

You are a “worker” if you:

• Are at least 15 years of age;
• Are resident in Canada for income tax purposes; and
• Had a total income of at least $5,000 (either for 2019 or the 12 month period up to the application date) from the following sources:
  • employment;
  • self-employment;
  • certain benefits under the Employment Insurance Act;
  • benefits received under a provincial plan:
    • because of pregnancy, or
    • in respect of the care of your new-born children, or children placed with you for the purpose of adoption.

If you are a “worker”, you will be eligible for an income support payment if you:

• cease working* for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which you applied for the payment; and
• do not receive, in respect of the 14 consecutive days that you ceased working because of COVID-19,
  • income from employment or self-employment;
  • benefits, as defined in subsection 2(1) of the Employment Insurance Act; or
  • benefits under a provincial plan in relation to pregnancy, new-born children, or adopted children.

*The government webpage notes that if you are still employed but not being paid because you are not able to work (e.g. there’s not enough business) then you will qualify as ceasing to work.

Note that if you quit your job, you will not be eligible for an income support payment.

The maximum number of weeks for which you can receive an income support payment is limited to 16 weeks.

If you receive an income support payment that you are not entitled to, you are required to repay that amount to the government.  The government will not charge interest on erroneous payments or overpayments recovered from you.

GOODS AND SERVICES TAX CREDIT (GSTC)  

Canada Revenue Agency

The Government is proposing to provide a one-time special payment by early May 2020 through the GSTC. This will double the maximum annual GSTC payment amounts for the 2019-20 benefit year.

The average boost to income for those benefitting from this measure will be close to $400 for single individuals and close to $600 for couples. This measure will inject $5.5 billion into the economy.

Department of Finance

We are providing a one-time special payment by early May through the Goods and Services Tax credit for low- and modest-income families.

The average additional benefit will be close to $400 for single individuals and close to $600 for couples.

There is no need to apply for this payment. If you are eligible, you will get it automatically.

CANADA CHILD BENEFIT (CCB)  

Canada Revenue Agency

The Government is proposing to increase the maximum annual CCB payment amounts, only for the 2019-20 benefit year, by $300 per child.

The overall increase for families receiving CCB will be approximately $550 on average; these families will receive an extra $300 per child as part of their May payment. In total, this measure will deliver almost $2 billion in extra support.

Employment and Social Development Canada

• Eligible recipients will receive $300 more per child with their regular May CCB payment.
• If you have previously applied for the CCB, you do not need to re-apply.
• For more information on the Canada Child Benefit such as how to apply and eligibility requirements, go to Canada child benefit or call 1-800-387-1193.

REGISTERED RETIREMENT INCOME FUNDS (RRIFS)

Canada Revenue Agency

To ensure that certain groups who may be vulnerable to the impacts of COVID-19 have the support they need, the Government is proposing targeted help by reducing required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020, in recognition of volatile market conditions and their impact on many seniors’ retirement savings.

This will provide flexibility to seniors that are concerned that they may be required to liquidate their RRIF assets to meet minimum withdrawal requirements. Similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.

CANADA STUDENT LOANS

Employment and Social Development Canada

• To support student and apprentice loan borrowers during the COVID-19 pandemic, the Government of Canada has announced its plan to pause the repayment of Canada Student Loans and Canada Apprentice Loans until September 30, 2020, with no accrual of interest. Pending parliamentary approval, these measures will become effective March 30 2020. This will include pre-authorized debits. These measures will provide relief to nearly 1 million CSLP borrowers in repayment. We will provide more details shortly.
• Proposed legislation would temporarily pause the repayment of Canada Student Loans.
• Effective March 30, 2020, all student loan borrowers will automatically have their repayments suspended until September 30, 2020. No payment will be required and interest will not accrue during this time. Students do not need to apply for the repayment pause.
• These measures will provide relief to nearly 1 million CSLP borrowers in repayment.
• Students who are currently studying can continue to apply for Canada Student Loans. There will be no change to the application process. If a borrower wishes to apply for student financial assistance during the pause, they should apply through their Province or Territory of residence.

APPRENTICE LOANS  

Canada Apprentice Loan Service Centre

To support apprentice loan borrowers during the COVID-19 pandemic, the Government of Canada has announced its plan to pause the repayment of Canada Apprentice Loans until September 30th, 2020, with no accrual of interest. Pending parliamentary approval, these measures will become effective March 30th, 2020. This will include pre-authorized debits. 

Please speak to your DMCL advisor about your circumstances and to understand the tax impact of owning these plans.