On March 27, 2020, Prime Minister Justin Trudeau made a number of new announcements as outlined below.
The Prime Minister unveiled that the government is going to be increasing the payroll subsidy in an effort to thwart layoffs due to COVID-19. This subsidy will now cover up to 75 percent of salaries, an increase over the original 10 percent subsidy plan. The wage subsidy will be back-dated to Sunday March 15. No further details were announced, but are expected on Monday.
The federal government is also introducing the Canada Emergency Business Account (CEBA). The new measure will offer qualifying businesses:
- $40,000 loan from banks, which will be guaranteed
- The loan will be interest-free for the first year
- Under certain conditions, $10,000 of it will be forgivable
The government will also be providing an additional $12.5 billion through Export Development Canada to help small and medium-sized businesses with operational cash flow.
For more details on these topics, please click on the provided link.
GST and HST payments, along with duties and taxes owed on imports, will be deferred until June 30, 2020.
For more details on this topic, please click on the provided link.
For employees who have already been laid off, Trudeau emphasized that the Canada Emergency Response Benefit, which was announced on Wednesday, is still applicable.
If you have any questions, please contact your Lipton advisor.
