Category: Blog

February 9, 2021 – today, the Honourable Diane Lebouthillier, Minister of National Revenue, announced that the Government of Canada will provide targeted interest relief to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022. This will give Canadians more time and flexibility to pay if they have an amount owing.

To qualify for targeted interest relief, individuals must have had a total taxable income of $75,000 or less in 2020 and have received income support in 2020 through one or more of the following COVID-19 measures:

• the Canada Emergency Response Benefit (CERB); 
• the Canada Emergency Student Benefit (CESB); 
• the Canada Recovery Benefit (CRB); 
• the Canada Recovery Caregiving Benefit (CRCB); 
• the Canada Recovery Sickness Benefit (CRSB); 
• Employment Insurance benefits; or 
• similar provincial emergency benefits.

The Canada Revenue Agency (CRA) will automatically apply the interest relief measure for individuals who meet these criteria.

Additionally, any CRA-administered credits and benefits normally paid monthly or quarterly, such as the Canada Child Benefit and the goods and services tax/harmonized sales tax credit will not be applied to reduce individuals’ tax debt owing for the 2020 tax year. Canadians are strongly encouraged to file their tax returns by the filing deadline to ensure that their benefit payments continue without interruption.

The Canada Revenue Agency has introduced a temporary flat rate method to calculate your home office expenses for 2020 for employees
who worked from home in 2020 due to COVID-19. If you use this method, your employer is not required to complete Form T2200S,
Declaration of Conditions of Employment for Working at Home Due to COVID-19, and you are not required to keep documents to support
your claim.

Option 1 – Temporary flat rate method

You may use this method to calculate your home office expenses if you worked more than 50% of the time from home for a period of
at least a month (four consecutive weeks) in 2020 due to COVID-19. If you meet this condition, you can claim $2 for each day that you
worked at home during that period, plus any other days you worked at home in 2020 due to COVID-19, up to a maximum of $400. This amount is entered as a deduction on line 22900 of your return.

Option 2 – Detailed Method

You can also calculate your home office expenses using detailed method.

You may use this method to calculate your home office expenses if you:
1) Worked more than 50% of the time from home for a period of at least a month (four consecutive weeks) in 2020.
The period can be longer than a month. For examples, go to canada.ca/cra-home-workspace-expenses
2) Have a completed and signed Form T2200 Short, Declaration of Conditions of Employment for Working at Home Due to COVID-19,
from your employer
and
3) Kept all your supporting documents
Note: You cannot claim any expenses that were or will be reimbursed by your employer

Eligible Expenses The following list includes common home office expenses:

For additional home office expenses you may be able to claim, go to canada.ca/cra-home-workspace-expenses

• rent paid for a house or apartment where you live

• electricity, water, heat, or the utilities portion of your condominium fees

• maintenance (minor repairs, cleaning supplies, light bulbs, paint, etc.)

• home internet access fees

• office supplies (stationery items, pens, folders, sticky notes, postage, toner, ink cartridge, etc.)

• employment use of a basic cell phone service plan

• long distance calls for employment purposes Employees who earn commission income can also claim the following:

• property taxes

• home insurance

• lease of a cell phone, computer, laptop, tablet, fax machine, etc. that reasonably relate to earning commission income

Non-eligible Expenses You cannot claim any of the following:

• capital cost allowance

• mortgage interest

• principal mortgage payments

• capital expenses (replacing windows, flooring, furnace, etc.)

• office equipment (printer, fax machine, briefcase, laptop case or bag, calculator, etc.)

• monthly basic rate for a landline telephone

• cell phone connection or license fees

• purchase of a cell phone, computer, laptop, tablet, fax machine, etc.

• computer accessories (monitor, mouse, keyboard, headset, microphone, speakers, webcam, router, etc.)

• other electronics (television, smart speaker, voice assistant, etc.) • furniture (desk, chair, etc.)

The TFSA contribution limit is $6,000 for 2021. This means the maximum cumulative contribution room will increase to $75,500, up from $69,500 in 2020. You can always check your cumulative contribution room by logging onto your CRA MyAccount.

Small businesses continue to face challenges and uncertainty during the COVID-19 pandemic and the government is providing support to ensure they can stay in business.

December 4, 2020 – Government of Canada increases the Canada Emergency Business Account loans

Since the spring, the Canada Emergency Business Account has helped almost 800,000 small businesses and not-for-profits in Canada. Today the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, announced the expansion of the Canadian Emergency Business Account (CEBA).

Starting on Friday, December 4, 2020, eligible businesses facing financial hardship as a result of the COVID-19 pandemic are able to access a second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available to small businesses.

Half of this additional financing, up to $10,000, will be forgivable if the loan is repaid by December 31, 2022.

This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid on time.

As announced in the Fall Economic Statement, the application deadline for CEBA has also been extended to March 31, 2021. 

To apply, eligible businesses and not-for-profits need to contact the financial institution that provided their initial CEBA loan and provide the appropriate information and documentation. 

If your business has had any drop in revenue you will qualify for the new rent subsidy. Need help to apply for the Rent Subsidy? Please contact us

Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

To see who can apply click here

To see what periods you can apply for click here

December 18, 2020 – The B.C. government has introduced a one-time, tax-free payment of up to $1,000 for eligible families and single parents and up to $500 for eligible individuals. You have until June 30, 2021 to apply. 

To get to the application website click here

How the benefit works

The BC Recovery Benefit (the benefit) is a one-time direct deposit payment for eligible families, single parents or individuals. Benefit eligibility is based on net income from your 2019 tax return. You must apply to receive the benefit.  

Benefit rates

The amount you’re eligible for will be automatically calculated based on your income when you apply.

Families and single parents

• $1,000 for eligible families and single parents with a net income of up to $125,000
• Reduced benefit amount for eligible families and single parents with a net income of up to $175,000

The benefit defines a family as an individual and their spouse or common-law partner, unless they are separated. Both people must be residents of B.C. on December 18, 2020. 

The benefit defines a single parent as an individual who is the principal caregiver to at least one child.

Individuals

• $500 for eligible individuals with a net income of up to $62,500
• Reduced benefit amount for eligible individuals with a net income of up to $87,500

Using 2019 income tax data

As with the B.C. Emergency Benefit for Workers, in order to prevent fraudulent claims, applicants must provide 2019 income tax data to receive the benefit.

British Columbians need support now, and if the benefit relied on 2020 income tax data, payment wouldn’t be possible until approximately fall 2021.

Determine your eligibility

General eligibility criteria

Generally, the benefit is available to people:

• Residing in British Columbia on December 18, 2020
• Who are at least 19 years old on December 18, 2020, or meet specific eligibility criteria
• Who filed a 2019 Canadian personal income tax return, or meet specific eligibility criteria
• Who have a valid social insurance number, individual tax number or temporary tax number

If you receive a payment and we later determine that you’re not eligible for it, you will be required to repay it.

Note: If you’re applying for the family benefit, your spouse or common-law partner must also meet the general eligibility criteria.

What you need to apply

Net income from your 2019 tax return

You must provide your net income from your 2019 tax return. This number can be found on Line 23600 of your most recent 2019 income tax return.

If you haven’t already filed your 2019 tax return, file with the Canada Revenue Agency as soon as possible before applying for the benefit. 

There are multiple ways to file, including:

• Online, by paper or by phone
• Free tax clinics for people with modest income and a simple tax situation. Find a tax clinic

Social insurance number

When you apply, we’ll need your social insurance number, individual tax number, or temporary tax number to verify your eligibility.

Driver’s licence number

If you have a B.C. driver’s licence, you must provide your driver’s licence number. This information will be used to help detect and stop fraudulent claims.

Direct deposit information

The benefit will only be issued by direct deposit. You must have an account with a Canadian financial institution to receive the benefit.

If you’re on income or disability assistance and don’t have a bank account, a modified application will be available early in the new year to help you apply for and receive the benefit.

The Government of Canada is taking immediate, significant and decisive action to support Canadians and businesses facing hardship as a result of the COVID-19 outbreak.

The support programs are updated regularly. Please use the links below to stay up to date on the support programs

Support for individuals click here

Support for businesses click here