Announcements from the federal government in with respect to the financial aid available in response to the COVID-19 crisis have become a near daily occurrence. Today was no exception.
Further to its recent announcement of the Temporary Wage Subsidy for Employers ("TWS") - the details of which are set out in our March 26, 2020 article COVID-19: An Update to the Federal Aid Package Now Called the Canada Emergency Response Benefit ("CERB") - Prime Minister Justin Trudeau announced a major boost to the TWS on March 27, 2020.
While the TWS was initially only going to allow eligible employers to reduce the amount of payroll deductions required to be remitted to the CRA by 10% of the remuneration paid by an employer between March 18 and June 20, 2020, that amount has now been increased to 75% (and is backdated to March 15, 2020).
In addition, Prime Minister Trudeau also announced:
- Guaranteed bank loans of up to $40,000 for small business which will be interest-free for the first year. In certain circumstances, up to $10,000 for the loans could be non-repayable; and,
- That GST and HST payments, as well as duties and taxes owed on imports, will be deferred until June.
The increase to the TWS and newly-announced financial aid measures are aimed at avoiding layoffs and business closures in response to the COVID-19 crisis.
Details of these new programs are expected by Monday, March 30, 2020.
About Mackrell International - Canada - Scott Venturo LLP is a full service business law firm in Calgary, AB and a member of Mackrell International. Mackrell International - Canada is comprised of four independent law firms in Alberta, British Columbia, Ontario and Quebec. Each firm is regionally based and well-connected in our communities, an advantage shared with our clients. With close relations amongst our Canadian member firms, we are committed to working with clients who have legal needs in multiple jurisdictions within Canada.
This article is intended to be an overview and is for informational purposes only.