$27 Billion Aid Package + $55 Billion in Tax Deferrals Announced
The federal government announced the following measures to help Canadian individuals, families and businesses. This is “the first phase” so stay tuned for more to come.
Individiuals and Households:
- Personal income tax return filing deadline will be June 1st
- Personal income tax payable will be due after August 31st
- Mortgage payments and Line of Credits: Banks will work directly with individuals on a case by case basis, they will be offerring a 6 month deferral on mortgage payments. Contact your bank directly.
- Auto-Loans and Credit Card Payments – on a case by case basis, banks and loan and credit card companies will work with individuals directly to put in place ‘skip a payment’ programs.
- Emergency Care Benefit
- This is for people who do not qualify for EI or paid sick leave, such as self-employed workers, contract workers, gig workers, part-time workers, and others, who fall ill or are in quarantine or have to self-isolate or are taking care of an ill family member.
- Amount will be comparable to EI, $900 every two weeks, for up to 15 weeks.
- Benefit will be avaialble starting in early April or three weeks from now
- Apply online and receive by direct deposit
- No medical documentation requried, just an attestation.
- People have to prove every two weeks that they are still eligible
- Emergency Support Benefit
- 14 weeks of support comparable to what EI would pay
- This is for self-employed people who have to close their business and be at home during this time even if they are not ill
- More details to be announced in coming days
- Student Loans – 6 month moratorium on Canada Student Loans without interest
- Canada Child Benefits – additional $300 per child
- GST Credits – for those that already qualify, an additional $400 will be paid to single adults and $600 for couples, starting in April.
- Senior Citizens – minimum required withdrawls from RRIFs will be reduced by 25%
- Old Age Security and Guaranteed Income Supplement– will continue as usual
- Corporations will have until September 1st to pay any tax payments or installment payments that would otherwise have been due starting tomorrow.
- Subsidy to cover 10% of payroll costs for a period of three months to keep staff on payroll, up to $25,000 per employer, effective immediately.
- $10 billion in credit to businesses through Business Development Bank of Canada and Export Development Canada
Visit www.grumpyaccountant.ca to sign up for updates regarding the publication of my upcoming book, The Grumpy Accountant, an expose of Canada’s ridiculously complicated tax system and my plan on how to fix it!