Kennedy Accounting Services
324 Flying Club Rd K0K 3E0 Stirling, ON, Canada

The Ontario government recently expanded its Covid-19 funding relief programs for businesses. Please visit the following link and follow the prompts, to determine if your business meets the qualifications to receive additional funding.https://www.app.grants.gov.on.ca/msrf/#/

Canada Revenue Agency (CRA) announced today they are extending the payment deadline for individual, corporate and trust income tax returns from September 1, 2020 to September 30, 2020. This extension also applies to installment payments. They will not charge late filing penalties on returns as long as they are filed by September 30th. If you receive credits and benefits such as the Canada Child Benefit CRA will continue payment of these benefits from July through September 2020, based on information from your 2018 tax return. If they have not received and assessed your 2019 return by early September 2020 these benefits will cease in October 2020 and individuals may have to repay amounts issued from July 2020.

Please keep in mind that if you are a business who received the CEBA loan ($40,000.00). There will more than likely be reporting required in the future where you must account for the funds you spent and that they were spent appropriately. Please make sure you let us know when you are drawing from this loan so we may track this for you and it can be accounted for appropriately. The eligibility for this loan was to open up and be made available for additional businesses. There has been no further news on this at this time.

Please note that the Canadian Emergency Response Benefit (CERB) payments that started to go out this week are taxable income. These payments will be included with all your other income on your 2020 tax return. No income tax is being deducted or withheld from these payments. If at all possible, I would recommend setting aside 25% to go towards the taxes you will owe on these payments. This is of course an average. Some of you will owe more and some of you less depending on your given situations. I would also like to point out that payment of any 2019 income taxes you owe has been currently deferred until September 1st, 2020. This would mean that in less than 8 months after that date (given the current rules) your 2020 taxes become due and payable as well.

The Canada Emergency Response Benefit (CERB) is open for applications on April 6th. Please see the following for details about qualification requirements and the application process. https://www.canada.ca//s/benefits/ei/cerb-application.html