COVID-19
How it works: Reducing the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020, to provide flexibility to annuitants who might otherwise be forced to liquidate investments to meet minimum RRIF withdrawal requirements.
Department: Canada Revenue Agency
Applicability: Owners of Registered Retirement Income Funds (RRIFs).
The Response Plan also notes that similar rules will apply to individuals who are receiving variable benefit payments under defined contribution registered pension plans.
Funding: Unspecified.
Effective Date & Length: Unspecified.
How it works: Canada Revenue Agency will defer the filing due date for the 2019 tax returns of individuals, including certain trusts.
Department: Canada Revenue Agency
Applicability:
● For individuals (other than trusts), the return filing due date will be deferred until June 1, 2020. However, the Agency encourages individuals who expect to receive benefits under the GSTC or the Canada Child Benefit not to delay the filing of their return to ensure their entitlements for the 2020-21 benefit year are properly determined.
● For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.
Funding: Deferring collection of more than $50 billion in tax revenue.
Effective Date & Length: The Canada Revenue Agency will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
How it works: Introduce a pause on the repayments of Canada Student Loans until September 30th, 2020, with no accrual of interest.
Department: Canada Revenue Agency
Applicability: Holders of a Canada Student Loan account. Students do not need to apply for the repayment pause.
Funding: Unspecified.
Effective Date & Length: Effective March 30th – September 30th
How it works: Mortgage payment deferrals can help you during times of financial hardship — like unemployment or reduced employment due to the Coronavirus (COVID-19) outbreak.
The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. It’s also known as a mortgage payment deferral agreement or mortgage forbearance agreement and it’s a temporary measure.
Department: Canadian Banks
Applicability: All customers who are currently in good standing and have been impacted by COVID-19 can apply for mortgage relief from their bank. Customers will answer a few questions to help their banks direct applications appropriately.
COVID-related mortgage deferral is available for an indefinite period and customers do not face a deadline for having to seek relief. They can approach their bank as the need arises.
Customers should understand that this is not mortgage forgiveness. Mortgage deferral means that payments are skipped for a defined period of time, during which interest which would otherwise be part of the deferred payments is added to the outstanding balance of the mortgage. The added interest is incorporated into the monthly payment, either when payments resume at the end of the deferral period or upon renewal at the end of the mortgage’s term.
Funding: Unspecified.
Effective Date & Length: Unspecified.
How it works: Deferral for Ontario Student Assistance Program (OSAP) loan payments and interest accrual.
Applicability: All OSAP loan holders
Liquidity Relief: Total $20 million
Effective Dates: March 30, 2020 to September 30, 2020 (Six-month deferral)