A summary of Federal and BC Government Economic Response to the COVID-19 Lockdown
Vancouver, BC -- (ReleaseWire) -- 04/09/2020 --As it became clear that the social distancing protocol is going to have a tremendous impact on the Canadian economy in general and small business in particular, both the Federal and BC Government launched a variety of economic responses to help small businesses survive the lockdown due to COVID-19. A summary of the initiatives provided by the Vancouver Tax Accountants at Mew + Company is now available at https://www.mewco.ca/blog/federal-and-bc-government-response-to-the-covid-19-crisis-for-canadian-small-businesses/
It's important for business owners to familiarize themselves with relevant relief packages. To read more about Ottawa's response, go to the official link at https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html#wage_subsidies
Relevant points of the Federal Response that will impact small businesses include:
- a 75% wage subsidy for up to 3 months, retroactive to March 15
- a $40,000 interest-free loan to small businesses that demonstrate they paid between $ 50K to $ 1Mil in total payroll in 2019 (If the balance of the loan is repaid before Dec 31, 2022, 25% of the loan or $ 10K will be forgiven)
- deferral of income tax payments owing or after March 18, 2020. The deferral is interest-free to Sep 1, 2020. Please note that most 2019 installments were owing prior to March 18, so interest will accrue on that
All businesses including the self-employed may defer GST payments until June 30, 2020. That means annual filers do not need to pay until June 30. Quarterly filers need not pay for 2020 Q1 until June 30. Monthly filers need not pay Feb, March and April 2020 until June 30. The CRA has also frozen collection actions, new audits, and audits in progress.
The article goes on to outline BC's response to the crises, which can be read fully at https://news.gov.bc.ca/releases/2020PREM0013-000545. In a nutshell, PST filing and payments have been deferred till Sep 30, 2020.
While Mew + Company will be not be seeing clients while social distancing measures and restrictions remain in effect, the office is open for inquires and questions by phone and email. Please email any question to the office along with a relevant cell number/email. Every effort will be made to answer questions in a prompt and thorough fashion.
About Mew + Company
Mew + Company, Vancouver, is an ideal solution to the taxation problem. With a simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields—including restaurants, real estate, retail, and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.
To learn more about Mew + Company and discuss their services, log on to https://mewco.ca/
Lilly Woo, CPA, CA, CFE, CFP
Mew + Company Chartered Professional Accountants
604 688 9198
Company Website: https://www.mewco.ca