COVID-19 and the Canada Revenue Agency

Thousands of Canadian individuals and businesses remain under collection action by the Canada Revenue Agency (“CRA”).  Several tax filing deadlines have been extended to allow taxpayers to cope with loss in revenue due to the ongoing COVID-19 pandemic. The following are important tax filing changes that can be found on the CRA website, but have been summarized here:

1.      The personal tax filing deadline for the 2019 tax season has been extended to June 1, 2020.

2.      Trust filing deadlines have been extended to May 1, 2020.

3.      Businesses may defer income amounts without interest and penalties until after August 31, 2020.

4.      The CRA has suspended the initiation of audits for four weeks, starting March 18, 2020 and has suspended ongoing audits for the same time. 

Objections, Appeals and Taxpayer relief

Objections relating to entitlements and benefits have been prioritized as a critical service during the COVID-19 pandemic. The CRA has stated that there should not be any delays. If you are currently the subject of a collection action by the CRA, please feel free to contact our office to speak with a tax lawyer who can assist you in your dispute.

Objections relating to other tax matters, both corporate and individual, are being held in abeyance. No collection action will be taken on these accounts at this time.

For the Tax Court of Canada (“TCC”), the TCC has ordered an extension of all timelines prescribed by the rules while it is closed. If you are a taxpayer debating their TCC options, please contact Spiteri & Ursulak LLP and speak to an experienced tax litigation lawyer.

Taxpayers who are unable to file a return or make payments on taxes owing due to the COVID-19 pandemic can apply for relief from interest and penalties. Taxpayer Relief applications are currently being prioritized based on COVID-19 issues.

If you have questions or concerns about your CRA dispute matters or if you want to appeal to the TCC, contact Spiteri & Ursulak LLP to speak with an experienced tax lawyer. We would be delighted to assist you.

**This information is not intended as nor does it constitute tax or legal advice. The information contained herein has been obtained from sources believed to be reliable at the time obtained, but neither Spiteri & Ursulak LLP nor its employees, agents, or information suppliers can guarantee its accuracy or completeness after the date of April 2, 2020.

What is the Canada Emergency Response Benefit?

Over the past several weeks, the Government of Canada continues to make announcements concerning the ongoing COVID-19 pandemic. On March 25, 2020, the Government unveiled the Canada Emergency Response Benefit (“CERB”). CERB will allow Canadians to access a taxable benefit of up to $2,000.00 per month for a period of four months. This taxable benefit will be available to Canadians between March 15 and October 3, 2020. The taxation of the benefit of $2,000.00 will result in a net amount of $1,800.00. In applying for this benefit, you should consider how this might affect your personal circumstances come tax season in 2021.

The Government is hopeful that money will be distributed within two-weeks of applying. This benefit will be paid once every four weeks.

The CERB replaces two previous announced benefits. The reasoning for combining two previous benefits is to streamline the benefit system for Canadians to off-set the financial impact of COVID-19.

Who is eligible?

The CERB applies to all Canadians who are sick, have lost their employment, or are required to take care of a dependent who is infected with COVID-19. Whereas self-employed people were ineligible for EI benefits, the CERB covers self-employed and employed individuals.

It is urged that individuals who are applying for benefits update their direct deposit information on their My CRA Account to receive the funds quicker. For those Canadians that are currently receiving EI, they should not apply for the CERB benefit. If their EI benefit finishes prior to October 3, 2020, and they remain unemployed, they can apply for the CERB benefit.

If you are concerned about your current situation or have questions about how to apply for the benefit, please contact the team at Spiteri & Ursulak LLP. We would be happy to assist you and answer any questions.

**This information is not intended as nor does it constitute tax or legal advice. The information contained herein has been obtained from sources believed to be reliable at the time obtained, but neither Spiteri & Ursulak LLP nor its employees, agents, or information suppliers can guarantee its accuracy or completeness after the date of April 2, 2020.