CRB - Updated Guidance

On June 30, 2021, CRA updated its website to provide guidance on the amounts that can be received under the CRB program. It noted:

If you are eligible for the Canada Recovery Benefit (CRB), you can receive $1,000 ($900 after taxes withheld) for a 2-week period for up to 21 periods.

If you have already applied for 21 periods, or are applying for your first CRB period on or after period 22 (July 18 to 31, 2021), you may receive $600 ($540 after taxes withheld) for a 2-week period. 

You may re-apply up to a total of 25 eligibility periods (50 weeks) between September 27, 2020 and September 25, 2021.

Source page

COVID-19 Business Supports – Corporate Reporting

CRA has stated in Guide RC4088 General Index of Financial Information (GIFI) (released on June 28, 2021) and the T4012 T2 Corporation - Income Tax Guide 2020 (released on June 14, 2021) that COVID-19 related assistance should be included on line 8242 (Subsidies and grants) of the GIFI (Schedule 125). In addition, each of the COVID-19 subsidies received should be specifically identified on line 605 (description of other items, for example, “CEWS $15,500”), with the amount on line 295 being “0” on Schedule 1.

This marks a significant departure from previous guidance released by CRA, which stated that COVID-19 related assistance should be reported on line 295 of Schedule 1 and not on line 8242 (Subsidies and grants) of the GIFI.

No guidance was provided in respect of past filings done in a manner inconsistent with the new directions.

Watch! Life in the Tax Lane - July 2021

This FREE 10-minute video for Canadian Tax Professionals includes rapid-fire discussion of select recent developments in the wonderful world of Canadian tax presented by the Video Tax News Team. 

Sources:

• CEWS Audits – Source 1 and Source 2

• CERS Lockdown Support – Restricted Activities – Source 1 and Source 2

• Insurable Employment

• Impending US Tax Changes

• US Master Limited Partnerships (USMLPS) – Withholding Taxes

• Poor Records – Repayment of Shareholder Advances

Life in the Tax Lane is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2021, All Rights Reserved.

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Tax Update 2021

14 hours of practical tax information | 10 virtual live sessions | Recording available

The world has changed, and the pace of tax change has only accelerated. Get up-to-date and relevant tax planning tips and traps for owner-managed businesses with the 37th annual Tax Update seminar.

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For detailed COVID-19 information curated for Canadian accountants, go to videotax.com/Covid19

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Tax Update 2021 - Registration Open!

14 hours of practical tax information  | 10 virtual live sessions  |  Recording available

The world has changed, and the pace of tax change has only accelerated. Get up-to-date and relevant tax planning tips and traps for owner-managed businesses with the 37th annual Tax Update seminar.

With the uncertainty around in-person gatherings and travel due to the COVID-19 pandemic, as well as the positive response from last year's registrants, we are excited to offer this course virtually again for 2021.

Virtual live sessions will be offered from September through November and sorted by geographic location so that we can deliver targeted, practical tax information. Registrants can join us for 2-full-day or 4-half-day sessions. All virtual live events will include a textbook and access to the session recording for two weeks.

Video Tax News is working diligently on offering some in-person sessions. We are closely monitoring federal and provincial health protocols. If we determine that hosting a compliant and safe in-person session is feasible, we will notify those interested by September (or earlier). Learn more.

CEBA Updates

On June 8, 2021, the CEBA website was updated to provide guidance on requalifying and upcoming deadlines. It notes:

Deadlines

• For Existing Non-Deferrable Expense Applicants

  • The initial document submission deadline is July 14, 2021.

  • The document resubmission deadline is September 3, 2021

• For $20,000 Expansion Applicants Required to Submit Additional Information Related to Their Business Number:

  • The deadline to submit additional information related to your business number is August 20, 2021

• For $20,000 Expansion Applicants Required to Requalify Under the Non-Deferrable Expense Stream:

  • The initial document submission deadline is September 16, 2021

  • The document resubmission deadline is October 17, 2021

Requalification

To requalify under the Non-Deferrable Expense stream, please visit https://application-demande.ceba-cuec.ca, complete a new attestation, and provide supporting documentation to demonstrate between Cdn. $40,000 and Cdn. $1,500,000 in 2020 Non-Deferrable Expenses. You may also call the CEBA Call Centre at 1-888-324-4201.

Applicants have until September 16, 2021 to attempt to requalify under the Non-Deferrable Expense stream.