Category: Blog

General blog posts

Renter’s Tax Credit for BC

You can claim this refundable income tax credit if you meet all of the following conditions:

  • You rented and occupied a rental unit for at least six months in a calendar year in British Columbia
  • You are 19 years of age or older, or married or in a common-law partnership, or a parent of a child
  • You were a resident of British Columbia at the end of December 31 of the year for which you are claiming the credit

If you have a spouse or common-law partner, only one credit can be claimed per couple even if both rent their own homes.

You are not eligible for this credit if any of the following conditions apply:

  • You were confined to a prison or a similar institution at the end of the year and you have been confined for more than six months in total for the year that you are claiming the credit
  • You were an employee of a foreign country or a family member or a servant of the employee of a foreign country

The following amounts are not considered as rent for the purposes of the credit:

  • A rent that was paid to someone related to you
  • A rent paid for a campsite, moorage or manufactured home site
  • A rent on accommodations your employer paid for, unless the amount was included in your income for the year
  • A rent paid under a rent-to-own plan

Do not claim this credit on a return for a person who died in the year for which the credit is claimed.

You can claim the credit of $400 a year if your adjusted family net income is below $60,000. If your income is more than $60,000 and less than $80,000 you may receive a reduced amount. The tax credit is reduced by 2% of the amount by which your adjusted family net income exceeds $60,000. The credit is reduced to zero if your income is $80,000 or more.

The adjusted family income threshold amount of $60,000 will be indexed each year for inflation.

Bankruptcies in 2023

The British Columbia renter’s tax credit cannot be claimed on your pre-bankruptcy or in-bankruptcy return.

You must be an eligible renter for at least six months in 2023.

How to claim this credit

Claim this credit on Form BC479 for the year that you rent your rental unit

What is new for 2023 personal tax filing

Property flipping

Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events.

Temporary flat rate method – home office expenses

The temporary $500 flat rate method does not apply to 2023. Therefore, taxpayers looking to claim home office expenses for 2023 will be required to use the detailed method and get a completed T2200.

Advanced Canada workers benefit (ACWB)

Advance payments of the Canada workers benefit (CWB) are now issued automatically under the ACWB to those who received the benefit in the previous tax year. As a result, Form RC201, Canada Workers Benefit Advance Payments Application, has been discontinued.

Starting in 2023, amounts from your RC210 slip are to be reported on Schedule 6, Canada Workers Benefit, in order to calculate the amount to enter on line 41500 of your return. If you have an eligible spouse, you can choose who will claim the basic amount for the CWB regardless of who received the RC210 slip for the basic amount.

First home savings account (FHSA)

The FHSA is a new registered plan to help individuals save for their first home. Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax free.

Multigenerational home renovation tax credit (MHRTC)

The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.

Intergenerational Business Transfers

This article was posted on the CPA website by Ashley Kim on November 21, 2023.

Before Bill C-208 came into effect on June 29, 2021, owners of a small business corporation, a family farm, or a fishing corporation were penalized when they sold or transferred shares to their child through a corporation owned or controlled by the child. The anti-avoidance rule in section 84.1 of Canada’s Income Tax Act (the ITA) recharacterizes capital gains as taxable dividends if taxpayers receive non-share consideration, such as cash or a promissory note for the proceeds of their shares to a non-arm’s length (related) corporation. Due to this recharacterization, section 84.1 not only subjects taxpayers to higher taxes (taxable dividends are subject to a higher tax rate than capital gains), but it also eliminates the opportunity for taxpayers to claim their lifetime capital gains exemption (LCGE) on the sale of their shares.

To encourage genuine intergenerational business transfers, Private-Member’s Bill C-2081 was introduced in 2021. Under the terms of this bill, which received royal assent and became law on June 29, 2021, if certain conditions are met, a transaction will not be subject to section 84.1,2 and the individual taxpayer will pay tax at the lower capital gains rate. If the taxpayer has sufficient LCGE and is not subject to other taxes, such as alternative minimum tax, there may be no tax on the transaction.

On July 19, 2021, however, the Department of Finance announced that it planned to amend Bill C-208 to safeguard against certain unintended tax avoidance loopholes—such as “surplus stripping” where there is no genuine intergenerational transfer of business3—and provided an illustrative list of issues with Bill C-208.

The proposed amendments to Bill C-208, which were announced in Budget 2023, are more restrictive and would apply to transactions on or after January 1, 2024. Given the potential impact of these changes, taxpayers looking to make business succession arrangements should pay heed if they want to avoid triggering unexpected tax consequences.

To help, this article provides a general overview of both Bill C-208 and the proposed amendments. However, due to the complexity of the current and proposed rules, the proposed rules are presented in a simplified manner.

Bill C-208

The general conditions under which the relieving provisions of Bill C-208 apply can be summarized as follows:

  • A taxpayer must be resident in Canada (not a corporation);
  • The taxpayer disposes shares (“subject shares”) of a corporation (“subject corporation”), which is resident in Canada;
  • The subject shares are qualified small business corporation (QSBC) shares  or shares of a family farm or fishing corporation (FFFC)4;
  • The taxpayer disposes of these shares to another corporation (“purchaser corporation”), and the purchaser corporation is controlled by one or more of the taxpayer’s children or grandchildren who are 18 years of age or older; and
  • The purchaser corporation does not dispose of the subject shares within 60 months of their purchase.

The provisions include a rule intended to reduce the LCGE of the taxpayer where the subject corporation’s taxable capital employed in Canada (TCEC) is greater than $10 million; it is also intended to eliminate the LCGE if the TCEC is greater than $15 million.5 However, this reduction to the capital gains exemption may not be effective due to concerns with the language used in the legislation.

In addition, there is a requirement that the taxpayer provide an independent assessment of the fair market value of the subject shares, as well as an affidavit signed by the taxpayer and a third party attesting to the shares’ disposal.

Proposed amendments

As outlined in Budget 2023, the proposed rules put more restrictions or conditions on a parent and an adult child to ensure that the exception6 to section 84.1 is only applied in the case of a “genuine” intergenerational business transfer. The amendments focus mainly on the transfer of control and ownership from a parent to their adult child and on conditions that must be met by the child after the transfer is made. These conditions include maintaining control of the purchaser corporation until a specific time and engaging in the underlying active business.

It’s important to note that the meaning of “child” has been extended under the proposed rules to include a child’s spouse even after the child’s death.7 It has also been extended to include a niece or nephew of a taxpayer or taxpayer’s spouse, the spouse of a niece or nephew, and the children of a niece or nephew. This extended meaning would enable more taxpayers to take advantage of the exception rule.

Additionally, in supplementary information to Budget 2023, the Department of Finance noted that the proposed amendments are also intended to remedy the fact that Bill C-208 does not address:

  • The parent’s control in the underlying business of the corporation;
  • The child’s involvement in the business;
  • Whether the interest in the purchaser corporation held by the child continues to have value; and
  • Whether the child retains an interest in the business after the transfer.8

Under the 2023 budget proposals, there are two paths to achieving an acceptable intergenerational transfer of qualifying shares: 1) an immediate intergenerational business transfer, which must be completed within three years; and 2) a gradual intergenerational business transfer, which can be completed over a period of five to 10 years. Most of the conditions for these two paths are similar except for the transitioning period and a few distinctive characteristics, as discussed below.

Pre-conditions

The proposed rules would apply where a parent resides in Canada and sells QSBC or FFFC shares to a corporation controlled by their adult child (where the expanded definition of child applies, as described earlier). Under these rules, the taxpayer (parent) would have to be an individual, not a trust; this means that a trust could not be used to multiply the LCGE among family members, and the parent would have to control the subject corporation prior to sale.9

Additionally, the parent must not have previously sought an exemption pursuant to paragraph 84.1(2)(e) of the ITA. This is meant to prevent a parent from undertaking successive transfers of shares that derive value from the same active business.

The disposition of shares

Under the proposed amendments, the following conditions would have to be met on and after the transfer:

Transfer of control and ownership

At the time of disposition, the parent would have to give up control of the subject corporation, the purchaser corporation, or any other person or partnership (referred to as a “relevant group entity”) that carries on an active business that is relevant to the determination of whether subject shares qualify as QSBC or FFFC shares.

In an immediate transfer, both legal and factual control would have to be transferred to the child. In a gradual transfer, only legal control would have to be transferred. However, in explanatory notes to Budget 2023, the Department of Finance stated10 that taxpayers should not rely on the ITA to justify any remaining factual control by the parent.

In both types of transfers, the parents would also be prohibited from owning, directly and indirectly, more than 50% of voting common shares of the subject corporation or more than 50% of equity interest in the relevant group entity, except with regard to any non-voting preferred shares, after the disposition.

Transfer of remaining ownership

In both immediate and gradual transfers, the parent would have to dispose of the remaining balance of their common growth shares in the subject corporation and any equity interest in a relevant group entity, excluding non-voting preferred shares, within 36 months of the disposition.

In an immediate transfer, the parent could hold the non-voting preferred shares or any debts indefinitely. In a gradual transfer, however, the parent could not—within 10 years of the initial disposition time—own, directly or indirectly, an interest (debt or equity) that is equal to more than 50% of the value of their interest in an FFFC at the time of disposition; for a QSBC, the number drops to 30%.

Transfer of management

The parent would have to transfer management of the business to at least one child and permanently stop managing the subject corporation and any relevant group entity within 36 months of an immediate transfer (or a greater period of time as is reasonable in the circumstances). In the case of a gradual transfer, it would increase to 60 months (or a greater period of time as is reasonable in the circumstances).

Child’s control and involvement

In an immediate transfer, the child would have to retain control of the subject or purchaser corporation for 36 months. In a gradual transfer, the time period extends to a minimum of 60 months (or until the business transfer is completed).

The child (or at least one of the children) must be actively engaged in the business on a regular, continuous, and substantial basis.11 This would require the child to work a minimum of 20 hours per week.

Relieving provisions

Even though the child would have to meet multiple conditions after the transfer of business, the proposed rules provide relief in certain circumstances without triggering any negative tax consequences. These include circumstances in which the child:

  • Subsequently disposes of the shares to an arm’s-length party or to another child;
  • Cannot carry on the business due to physical or mental impairment or death; and
  • Disposes of all business assets to satisfy debts to the business’s creditors.

Exercise caution

These are just some of the issues to bear in mind when contemplating the potential impact of the amendments to Bill C-208. It is currently unclear whether all genuine family business succession undertakings would be able to meet the conditions proposed in these amendments. Therefore, to avoid incurring severe tax consequences, it is important for taxpayers to understand the restrictions and conditions that would have to be met by both parent(s) and child(ren).

 


Ashley Kim, CPA, is a tax manager in Canadian tax services for BDO Canada LLP in Vancouver, where she focuses primarily on estate planning for high-net-worth individuals, corporate reorganizations, and sales of businesses for private corporations. She thanks Tina Huang, CPA, CA, TEP, a tax partner at BDO, for her assistance with this article. This article was originally published in the November/December 2023 issue of CPABC in Focus.

Footnotes

2 Pursuant to paragraph 84.1(2)(e) of the ITA.

4 Within the meaning of subsection 110.6(1) of the ITA.

5 Pursuant to paragraph 84.1(3)(b) of the ITA.

6 Pursuant to paragraph 84.1(2)(e) of the ITA.

7 This is the same meaning as in subsection 70(1) of the ITA.

8 Department of Finance Canada, Budget 2023 – Tax Measures: Supplementary Information, March 28, 2023 (16).

9 Pursuant to paragraph 84.1(2.3)(b) of the ITA.

11 Within the meaning of paragraph 120.4(1.1)(a) of the ITA.

https://www.bccpa.ca/news-events/cpabc-newsroom/2023/november/amendments-to-bill-c-208-opportunities-and-new-restrictions-for-intergenerational-business-transfer/

UNDERUSED HOUSING TAX DEADLINE EXTENDED to April 30 2024

Government of Canada extends deadline for homeowners to file their Underused Housing Tax return

From: Canada Revenue Agency

News release

October 31, 2023
Ottawa, Ontario
Canada Revenue Agency

The Minister of National Revenue announces that owners affected by the Underused Housing Tax (UHT) will have until April 30, 2024, to file their returns for the 2022 calendar year without being charged penalties or interest.

This transitional relief will allow more affected owners to meet their obligations under this new law, which is part of the Government’s long-term plan to increase available housing for Canadians. Consequently, the Canada Revenue Agency will waive the application of penalties and interest for any late-filed UHT returns and for any late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT is paid by April 30, 2024.

“The Underused Housing Tax is one part of our plan to combat the housing shortage,” says the Honourable Marie-Claude Bibeau, Minister of National Revenue. “We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations.”

The UHT is an annual 1% tax on the ownership of vacant or underused housing in Canada. It is a federal tax that is independent of other provincial and municipal taxes on vacant or underused housing in Canada. It generally applies to foreign national owners of Canadian residential property, but it’s important to note that some Canadian individuals (namely those who own residential property as a partner of a partnership or as a trustee of a trust) and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax. These owners are referred to as “affected owners”.

The vast majority of Canadian individuals who own residential property are excluded owners and, therefore, do not have to file a UHT return or pay the tax. It is the duty of the owner of Canadian residential property to determine if they are an affected or excluded owner.

How to determine if you are an “affected owner”

The CRA has published a new online self-assessment tool. This tool helps you to find information you need to determine if you:

  • Need to file a return and pay the tax; or
  • Need to file the return but not pay the tax because you may qualify for an exemption from paying the UHT; or
  • Do not have to file a UHT return or pay the tax because you are an excluded owner.

If you’re an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.

Filing the Underused Housing Tax return

The fastest and easiest way to file your UHT return is through My Account and My Business Account.

If you are not registered for the CRA’s online portals, you can file your UHT return electronically, but you will need:

  •  one of the following valid CRA tax identifier numbers:
    • social insurance number
    • individual tax number
    • business number, and
  •  A digital access code

You can also file your return by mail or fax. Visit our File the return page to find out more.

More information

To learn more about the Underused Housing Tax, visit canada.ca/cra-uht.

For more information that can save you time, we encourage you to visit UHTN15, Questions and Answers on the Underused Housing Tax – Canada.ca.

Home Buyers Amount expanded

The CRA has expanded the Home Buyer Amount tax credit from $5,000 to $10,000.  What does this mean in real dollars? The result of a $10,000 credit is a tax refund or tax savings of $1,500.   I have heard many people refer to this as the first time home buyer amount.  This is simply not true.  You qualify for this tax credit as long as you have not owned a home in the year of purchase and the four previous years.  There are some additional considerations and conditions.

The details of this Line 31270 tax credit claim can be found here

If you aren’t sure you can always ask us.

Underused Housing Tax Introduced by Government of Canada

The Underused Housing Tax is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners.

This is a summary of some of the most important information about the Underused Housing Tax. More information and details about the tax will be available over the coming weeks.

On this page

Who must file a return and pay the tax

If you are an excluded owner of a residential property in Canada, you have no obligations or liabilities under the Underused Housing Tax Act.

An excluded owner includes, but is not limited to:

  • an individual who is a Canadian citizen or permanent resident – unless included in the list of affected owners below
  • any person – including an individual who is a Canadian citizen or permanent resident – that owns a residential property as a trustee of a mutual fund trust, real estate investment trust, or specified investment flow-through trust (SIFT) for Canadian income tax purposes
  • a Canadian corporation whose shares are listed on a Canadian stock exchange designated for Canadian income tax purposes
  • a registered charity for Canadian income tax purposes
  • a cooperative housing corporation for Canadian GST/HST purposes
  • an Indigenous governing body or a corporation wholly owned by an Indigenous governing body

If you are not an excluded owner we refer to you as an affected owner and you have obligations under the Underused Housing Tax Act for your residential property in Canada. An affected owner includes, but is not limited to:

  • an individual who is not a Canadian citizen or permanent resident
  • an individual who is a Canadian citizen or permanent resident and who owns a residential property as a trustee of a trust (other than as a personal representative of a deceased individual)
  • any person – including an individual who is a Canadian citizen or permanent resident – that owns a residential property as a partner of a partnership
  • a corporation that is incorporated outside Canada
  • a Canadian corporation whose shares are not listed on a Canadian stock exchange designated for Canadian income tax purposes
  • a Canadian corporation without share capital

If you are an affected owner, you must file an Underused Housing Tax return for each residential property that you own in Canada on December 31. You must also pay the Underused Housing Tax, unless your ownership qualifies for an exemption for the calendar year. Even if your ownership qualifies for an exemption, you must still file an Underused Housing Tax return for the calendar year.

Penalties for failing to file the return on time

There are significant penalties if you fail to file an Underused Housing Tax return when it is due. Affected owners who are individuals are subject to a minimum penalty of $5,000. Affected owners that are corporations are subject to a minimum penalty of $10,000.

Exemptions

Your ownership of a residential property may be exempt from the Underused Housing Tax for a calendar year depending on:

  • the type of owner you are
  • the availability of the residential property
  • the location and use of the residential property
  • the occupant of the residential property

Remember if you are an affected owner of a residential property in Canada on December 31 you still have to file an Underused Housing Tax return for the residential property for the calendar year, even if your ownership qualifies for an exemption.

Exemptions based on the type of owner

Your ownership of a residential property may be exempt for a calendar year if you are:

  • a specified Canadian corporation
  • a partner of a specified Canadian partnership, or a trustee of a specified Canadian trust
  • a new owner in the calendar year
  • a deceased owner, or a co-owner or personal representative of a deceased owner

Exemptions based on the availability of the residential property

Your ownership of a residential property may be exempt for a calendar year if the property is:

  • newly constructed
  • not suitable to be lived in year-round, or seasonally inaccessible
  • uninhabitable for a certain number of days because of
    • a disaster or hazardous conditions
    • renovations

Exemption based on the location and use of the residential property

Your ownership of a residential property may be exempt for a calendar year if the property is:

  • a vacation property located in an eligible area of Canada and used by you or your spouse or common-law partner for at least 28 days in the calendar year

Refer to the Underused housing tax vacation property designation tool to determine if your residential property is located in an eligible area of Canada for the purposes of this exemption.

Exemptions based on the occupant of the residential property

Your ownership of a residential property may be exempt for a calendar year in either of the following situations:

  • it is the primary place of residence for you or your spouse or common-law partner, or for your child who is attending a designated learning institution
  • at least 180 days in the calendar year are included in one or more qualifying occupancy periods for your ownership of the residential property

qualifying occupancy period is at least one month in a calendar year during which one of the following qualifying occupants has continuous occupancy of the residential property:

  • an individual with a written contract who deals at arm’s length with you and your spouse or common-law partner
  • an individual with a written contract who does not deal at arm’s length with you or your spouse or common-law partner, and who pays at least fair rent for the property
  • you, or your spouse or common-law partner, who has a Canadian work permit
  • your spouse or common-law partner, parent, or child who is a Canadian citizen or permanent resident

Special rule for individual owners of multiple residential properties

If between you and your spouse or common-law partner you own multiple residential properties, your ownership may not qualify for the exemptions for either primary place of residence or qualifying occupancy unless you file an election with the CRA to designate only one property for the purposes of the exemption.

Calculate what you owe

If your ownership of a residential property does not qualify for an exemption from the Underused Housing Tax for a calendar year, you must calculate what you owe for the calendar year.

The tax rate of the Underused Housing Tax is 1%. To calculate what you owe, multiply the value of the residential property by the 1% tax rate. Then multiply that result by your ownership percentage of the property.

Determine the value of the property

There are two ways to determine the value of a residential property. The general rule is to use its taxable value. If you want to use its fair market value instead, you must file an election with the Agency.

An affected owner electing to use the fair market value of a residential property to calculate Underused Housing Tax owing must get an appraisal of the property. The appraisal report must be prepared by an accredited, professional real estate appraiser operating at arm’s length from the owner. The intended use of the appraisal report must be to assist in the administration of the Underused Housing Tax Act.

Filing the return

If you are an affected owner of a residential property in Canada on December 31, you must file an Underused Housing Tax return for the calendar year. Even if your ownership of the property qualifies for an exemption and you do not owe any tax, you still must file a return.

More information and details about how to file the return will be available in the coming weeks.

When to file the return or an election

You must file your return for a calendar year by April 30 of the following calendar year.

You must pay any Underused Housing Tax you owe for a calendar year by April 30 of the following calendar year.

Elections to use the fair market value to calculate the tax you owe, or to qualify for the exemptions for primary place of residence or qualifying occupancy, are due by April 30 and are filed on the return.

Remember, there are significant penalties if you fail to file an Underused Housing Tax return when it is due.

Tax identifier numbers

You must have a valid CRA tax identifier number to file your Underused Housing Tax return. The following tax identifier numbers may be used depending on the situation:

  • a social insurance number (SIN)
  • an individual tax number (ITN)
  • a Canadian business number (BN) with an Underused Housing Tax (RU) program account identifier code

Note

A trust account number (TAN) cannot be used to file Underused Housing Tax returns.

Tax identifier numbers for individuals

Depending on your citizenship, if you are an individual, you must file your Underused Housing Tax return using either a SIN or an ITN.

If you are an individual who is a Canadian citizen or permanent resident, you must use a SIN to file your return.

If you do not already have a SIN, please contact Service Canada for information on how to apply for one.

If you are an individual who is not a Canadian citizen or permanent resident, and you already have a SIN, you must use your SIN to file your return.

If you do not have a SIN, you must use an ITN to file your return. If you do not have an ITN, you must apply for one.

Application for a CRA individual tax number (ITN) for non-residents (Form T1261)

Tax identifier numbers for corporations

If you are a corporation, you must use a business number (BN) with an Underused Housing Tax (RU) program account identifier code to file your Underused Housing Tax return.

If you already have a BN, you will have to register your RU program account before you can file your return.

If you do not have a BN, you must apply for one and register your RU program account before you can file your return.

How to register for a business number or CRA program account

You will be able to register your RU program account online after February 6, 2023. A link will be provided soon. Keep checking this page for updates.

Multiple residential properties

If you are an affected owner who owns two or more residential properties in Canada on December 31, you must file a separate Underused Housing Tax return for each property.

Multiple owners

If you are an affected owner of a residential property in Canada on December 31 who shares ownership with one or more co-owners who are also affected owners, each of you must file separate Underused Housing Tax returns for the property. You must each file separate returns even if your respective ownership qualifies for an exemption.

Keeping records

If you are an affected owner of a residential property in Canada on December 31, you must file an Underused Housing Tax return for the residential property. You must also keep records to support the determination of your obligations and liabilities. Even if your ownership is exempt and you do not have to pay the tax, you must still keep records. If you claim an exemption but do not have adequate records to support that exemption, we may disallow it.

 

Canada Housing Benefit

The one-time top-up to the Canada Housing Benefit aims to help low-income renters with the cost of renting. You may be eligible for a tax-free one-time payment of $500 if your income and the amount that you pay on rent qualify.

The Canada Revenue Agency (CRA) administers this one-time payment. To apply for this new federal one-time payment, you do not need to receive other housing benefits such as the Canada Housing Benefit, which is co-funded and delivered by the provinces and territories.

Applications are open until Friday, March 31, 2023.

Sections

Who can apply: One-time top-up to the Canada Housing Benefit

Who is eligible for the one-time payment for renters

Get ready to apply: One-time top-up to the Canada Housing Benefit

What to do before you apply, how to set up direct deposit

How to apply: One-time top-up to the Canada Housing Benefit

How to apply online or by phone and when to expect the payment

After you apply: One-time top-up to the Canada Housing Benefit

If your application is selected for review, request a second review if you disagree with the decision, return the payment

Contact the CRA: One-time top-up to the Canada Housing Benefit

If you have questions about the one-time payment for renters

Canada Dental Benefit

The interim Canada Dental Benefit is intended to help lower dental costs for eligible families earning less than $90,000 per year. Parents and guardians can apply if the child receiving dental care is under 12 years old and does not have access to a private dental insurance plan.

Depending on your adjusted family net income, a tax-free payment of $260, $390, or $650 is available for each eligible child. This interim dental benefit is only available for 2 periods. You can get a maximum of 2 payments for each eligible child. Benefit payments are administered by the Canada Revenue Agency (CRA).

The first benefit period is for children under 12 years old as of December 1, 2022 who receive dental care between October 1, 2022 and June 30, 2023.

Sections

Who can apply

Review eligibility criteria for the benefit

How much you can get

Benefit amounts for each period based on family income

Get ready to apply

What to do before you apply, how to set up direct deposit

How to apply

When and how to apply for the benefit

Return a payment

When and how to make a repayment

Contact the CRA

If you have questions about the dental benefit

Government extends loan forgiveness repayment deadline for the Canada Emergency Business Account

From: Department of Finance Canada

News release – deadline extended to December 31, 2023

January 12, 2022 – Ottawa, Ontario – Department of Finance Canada

The Canada Emergency Business Account (CEBA) program has provided interest-free, partially forgivable loans to nearly 900,000 small businesses and not-for-profit organizations to help them navigate the pandemic and remain resilient. However, the Omicron variant has delayed the recovery for businesses in many parts of the country.

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, and the Honourable Mary Ng, Minister of International TradeExport PromotionSmall Business and Economic Development, announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.

This extension will support short-term economic recovery and offer greater repayment flexibility to small businesses and not-for-profit organizations, many of which are facing continued challenges due to the pandemic. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).

Outstanding loans would subsequently convert to two-year term loans with interest of 5 per cent per annum commencing on January 1, 2024, with the loans fully due by December 31, 2025.

The government is also announcing that the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund is extended to December 31, 2023.

Quotes

“As Omicron has reminded us, we are still living in a pandemic. Our government understood, from the outset, that we had to put in place unprecedented measures to meet this unprecedented challenge. By providing small businesses with additional time to repay their loans and still have partial loan forgiveness, affected businesses and workers will continue to have the support they need to get through the pandemic.”

 – The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“As we fight the latest wave of the COVID-19 pandemic, we will continue to stand by Canada’s small businesses. Almost 900,000 small businesses accessed CEBA loans to help maintain operations through this difficult time. By extending the repayment deadline, we are ensuring that these hard working business owners are able to focus on their operations and building back from this pandemic stronger than ever.”

– The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development

Quick facts

  • The CEBA program was open for applications from April 9, 2020, to June 30, 2021. It has provided more than $49 billion in liquidity to over 898,000 Canadian businesses. 
  • CEBA provides interest-free loans of up to $60,000 to small businesses to help cover their operating costs during a time where their revenues have been reduced. These loans are partially forgivable. With the extension announced today, repaying the balance of the loan on or before December 31, 2023, will result in loan forgiveness of up to 33 per cent (up to $20,000). 
  • The $2 billion Regional Relief and Recovery Fund, operated through Regional Development Agencies, has been a key support for businesses unable to access other federal pandemic support programs.

Updates to BC Small and Medium Sized Business Recovery Grant

The Government of British Columbia has announced updates to the eligibility of the Small and Medium Sized Business Recovery Grant

Grants of $10,000 to $30,000 are available to small and medium sized B.C. businesses impacted by COVID-19. An additional $5,000 to $15,000 grant is available to eligible tourism-related businesses. 

The program runs until August 31, 2021 or until the funds are fully expended, whichever comes first.

If you need assistance with applying for the grant or just have questions on eligibility give us a call at Georgeopoulos & Company and we will help.

Important Program Updates

As of March 4, 2021:

  • The program has been extended to August 31st, 2021 or until funds are fully expended, whichever comes first
  • Businesses only need to show a 30% revenue loss from March 2020 to now when compared to the same one-month period in 2019
  • Help preparing a complete application package is now available from a registered Small Business BC service provider

If you applied to the program prior to March 4th, 2021: 

  • You do not need to resubmit an application
  • Applications received prior to changes will be reviewed under updated program criteria
  • Businesses that have already been approved for funding are not affected by these changes