GST/HST payments and other tax exemptions with small businesses is something that is top-of-mind during COVID-19. The CRA has put in place measures which should help alleviate some of these stresses. The CRA will permit all businesses to defer payment until the end of June 2020 on any GST/HST payments or remittances that are owing on or after March 27, 2020 and before June 2020 with no interest to payments.³ The deadline to file has remained the same, however, the CRA won’t impose penalties on a return that is filed late as long as it’s filed by June 30, 2020.³

The deadlines to file certain categories of tax and information returns have been extended:

• Trusts having a taxation year ending on December 31, 2019, may defer filing T3 returns until May 1, 2020.¹

• Partnerships and their members may defer filing T5013 returns until May 1, 2020.¹

• The deadline to file NR4 information returns has been extended to May 1, 2020.¹

For more questions and answers, please take a look at the Deferral of GST/HST Tax Remittances.

In conjunction with the GST/HST exemptions, the Ontario government has also announced the following measures to help support small businesses:

• Provincial tax deferrals on the Employer Health Tax (EHT), Tobacco Tax, Fuel Tax, Beer Tax and Mining Tax and other provincially-administered taxes until August 31, 2020 with no interest or penalty.²

• The Employer Health Tax (EHT) has temporarily increased, until January 1, 2021, from $490,000 to $1 million
→Employers who have to pay EHT have employees who physically report for work at your permanent establishment in Ontario; or have employees who are attached to your permanent establishment in Ontario; or have employees who do not report to work directly at your permanent establishment but are paid through your Ontario permanent establishment; and have Ontario payroll in excess of your allowable exemption amount.⁶

• Property tax reassessments being conducted this year for the 2021 tax year have been postponed.²

• Provincial Land Tax Payments are deferred from their next due date for 90 days without interest or penalty.²

For more information on the Employer Health Tax (EHT) or a full list of measures the Ontario government is taking.

Disclaimer

The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.

References

¹Brown, K., Meighen, C., Nearing, R. W., Purkey, F., & Juneja R. (2020, April 13). Tax Measures Under Canada’s COVID-19 Economic Response Plan. Retrieved April 15, 2020, from https://www.mccarthy.ca/en/insights/blogs/mccarthy-tetrault-tax-perspectives/tax-measures-under-canadas-covid-19-economic-reponse-plan ²Business, C. F. O. I. (2020, April 10). Canadian Federation Of Independent Business. Retrieved April 14, 2020, from https://www.cfib-fcei.ca/en/advocacy/employment-and-labour/ontario-covid-19-relief-measures-your-business ³Canada Revenue Agency. (2020, March 31). Government of Canada. Retrieved April 15, 2020, from https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-gst-hst.html ⁴Department of Finance Canada. (2020, April 11). Archived – Additional Details on the Emergency Wage Subsidy. Retrieved April 14, 2020, from https://www.canada.ca/en/department-finance/news/2020/04/additional-details-on-the-canada-emergency-wage-subsidy.html ⁵Department of Finance Canada. (2020, April 11). Government provides further flexibility for employers to access the Canada Emergency Wage Subsidy. Retrieved April 13, 2020, from https://www.canada.ca/en/department-finance/news/2020/04/government-provides-further-flexibility-for-employers-to-access-the-canada-emergency-wage-subsidy.html ⁶Ministry of Finance. (2020, April 7). Employer Health Tax. Retrieved April 15, 2020, from https://www.fin.gov.on.ca/en/tax/eht/index.html ⁷Ministry of Labour, Training and Skills Development. (2020, March 26). UPDATED: Ontario Enabling Financial Relief for Businesses. Retrieved April 13, 2020, from https://news.ontario.ca/mol/en/2020/03/ontario-enabling-financial-relief-for-businesses-1.html ⁸Osler. (2020, March 19). COVID-19 Quick-Reference Considerations for Employers. Retrieved April 14, 2020, from https://www.osler.com/en/resources/regulations/2020/covid-19-quick-reference-considerations-for-employers#Section1-a ⁹Shapiro, Hulton, & Lucha, B. (2020, April). COVID-19: The Essential Need-to-Know Guide for Employers and Employees: Insights. Retrieved April 13, 2020, from https://www.dickinson-wright.com/news-alerts/covid19-the-essential-guide-for-employers#a. Federal Amendments to the Canada Labour Code