COVID-19
How it works: Government is waiving tariffs on certain medical goods, including PPE such as masks and gloves. This intends to reduce the cost of imported PPE for Canadians, help protect workers, and ensure supply chains can keep functioning well.
Department: Canada Border Services Agency
Applicability: A vast number of protective masks, gloves and other garments, as well as disinfectants and sterilization products, wipes, medical consumables and other cleaning products. For further detail, Appendix A provides a list and description of goods based on tariff classification which are eligible for relief under this Order. Appendix B provides a list of other medical supplies that are not subject to this Order as they are already eligible for Most-Favoured Nation duty-free tariff treatment
Effective date: The relief of customs duty is available for eligible goods imported on or after May 5, 2020. This relief can be claimed at the time of importation or within two years of the date of importation.
How it works: The Canada Revenue Agency will not contact any small or medium-sized businesses to initiate any post-assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.
Department: Canada Revenue Agency
Applicability: The majority of businesses, per Finance Canada.
Funding: Not applicable.
Effective Date & Length: Underway.
How it works: Allow all businesses 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. No interest or penalties will accumulate on these amounts during this period.
Department: Canada Revenue Agency
Applicability: All businesses are applicable.
Funding: 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. Deferred until after August 31, 2020 (could be further deferred).
Effective Date & Length: Time frame applicable: the period after March 18, 2020, and September 2020.
How it works: Imported goods by businesses are generally subject to the GST, at a rate of 5 percent, as well as applicable customs duties, which vary by product and country of origin. While the vast majority of imports enter Canada duty-free, some tariffs remain, especially on consumer goods.
Department: Canada Border Services Agency
Applicability: Businesses that import goods.
Funding: Typically, payments owing for customs duties and the GST on imports are due before the first day of the month following the month in which the Statements of Accounts are issued. Payment deadlines for statements of accounts for March, April, and May are being deferred to June 30, 2020.
Effective Date & Length: Unspecified. Payments for March, April, and May are being deferred to June 30th.
How it works: The Government is deferring Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020.
Department: Canada Revenue Agency
Applicability: Minister of National Revenue will extend until June 30, 2020, the time that:
● Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
● Quarterly filers have to remit amounts collected for January 1, 2020, through March 31, 2020 reporting period; and,
● Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.
Funding: This measure could provide up to $30 billion in cash flow or liquidity assistance for Canadian businesses and self-employed individuals over the next three months.
Effective Date & Length: Effective Immediately, for the next 3-months.
How it works: The government is providing people and business in parts of Northern Ontario located outside of municipal boundaries a 90-day deferral of upcoming Provincial Land Tax (property tax) payments without incurring interest or penalties. This tax helps fund community services in unincorporated areas, such as policing, land ambulances, public health and social services.
Applicability: Applies to owners of over 63,000 residential and business properties outside municipal boundaries.
Effective Dates: Applies to all four 2020 Provincial Land Tax installments.
Liquidity Relief: Provides $15 million in property tax deferrals for people and businesses in parts of Northern Ontario located outside of municipal boundaries.
How it works: The government is providing municipalities with a 90-day deferral of the upcoming quarterly (June 30) remittance of education property tax to school boards. This provides municipalities with flexibility to, in turn, provide property tax deferrals to local residents and businesses.
Applicability: Depends on action taken by the municipality.
Effective Dates: Depends on action taken by the municipality.
Liquidity Relief: Provides municipalities over $1.8 billion in liquidity from June 30-September 30 to provide tax deferrals to local residents and businesses.
How it works: A 45-day suspension of time-of-use (TOU) electricity rates. This will hold electricity prices to the off-peak rate of 10.1 cents-per-kilowatt-hour, 24 hours per day, seven days a week to all time-of-use customers.
Customers will see rate reductions of over 50 percent compared to on-peak rates.
Applicability: Applies to all time-of-use customers, approximately five million residential consumers, farms and some small businesses. Seasonal customers and those paying tiered rates will not see their rates change.
The discount will be applied automatically to electricity bills without the need for customers to fill out an application form.
Effective Dates: March 24th until May 8th (45-day suspension). Depending on billing cycles, some customers will see these changes on their next electricity bill. TOU customers whose billing cycle ended before their local distribution company implemented this change will receive the reduced rate as a credit on a future bill.
Liquidity Relief: Based on this change the government estimates average small businesses will save $150 and farms will save more than $300.
While the eventual cost to the Treasury depends on actual energy consumption, the estimated cost is $171 million.
How it works: Workplace Safety and Insurance Board (WSIB) will allow Schedule 1 employers to defer reporting and payments for a period of six months. Schedule 2 businesses that pay the WSIB for the cost related to their workplace injury and illness claims can also defer payments. No interest will be accrued on outstanding premium payments and no penalties will be charged during this six-month deferral period.
Applicability: All employers covered by the WSIB’s workplace insurance are automatically eligible for the financial relief package. They will not be required to opt-in to receive this benefit.
Effective Dates: Until August 31, 2020 (six month period).
Liquidity Relief: $1.9 billion in tax deferrals.
How it works: The government is providing businesses with a five-month interest and penalty-free period to make payments for the majority of provincially administered taxes (Employer Health Tax; Tobacco Tax; Fuel Tax; Gas Tax; Beer, Wine and Spirits Taxes; Mining Tax; Insurance Premium Tax; International Fuel Tax Agreement; Retail Sales Tax on Insurance Contracts and Benefit Plans; and Race Tracks Tax).
Applicability: Available to approximately 100,000 businesses.
Effective Dates: April 1 to August 31, 2020 (five-month period).
Liquidity Relief: $6 billion in tax deferrals.
How it works: The government is temporarily raising the Employer Health Tax (EHT) exemption from $490,000 to $1 million for 2020. Eligible private-sector employers with annual payrolls up to $5 million would be exempt from EHT on the first $1 million of total Ontario remuneration for 2020. The maximum EHT relief for eligible employers for 2020 from the exemption would increase to $19,500 from $9,945.
Applicability: About 30,000 private-sector employers would not pay any EHT for 2020 and another 27,000 private-sector employers would pay less EHT for one year.
Liquidity Relief: $355 million tax cut.
Guelph City Council approved the following measures to provide some financial relief for businesses: No interest, penalty or collection fees on property taxes until August 1, 2020. Where possible, the City will collect property tax installments on April 30 and June 30. Property owners who may not be in a position to pay taxes on time can email tax@guelph.ca to defer automatic tax payments. There will also be no late fees or interest on water, wastewater or stormwater bills until August 1, 2020.The City of Guelph will also continue issuing business licenses, and defer fees until August 1, 2020.
The City of Kingston is waiving penalties and interest charges on April and May interim arrears and offering to defer property tax instalments for April and May. Property owners with the 10-month payment plan must send a request to the City by March 27 to amend and defer payment due April 1 and May 1, which are to be rescheduled for November 1 and December 1, respectively.
There will be no new late fees or City-imposed non-sufficient funds (NSF) charges for water/wastewater bills until June 30, 2020. Businesses and property owners can opt out or suspend pre-authorized payments on the City's website. In addition, no water shutoffs will be carried out until June 30, 2020. Also, there will be no new late fees or City-imposed non-sufficient funds (NSF) charges for tax billings until June 30, 2020. Businesses and property owners can opt out or suspend pre-authorized payments on the City's website.
Task Force includes industry and business organizations from across the City
The City of Brampton waived interest and late fees on property tax payment for a five-month period of March 18, 2020 to August 19, 2020. No interest or late fees will be applied on the second instalment, which was due on March 18, 2020. The third instalment, due on April 22, 2020, will also be exempted from interest and late fees. Those who sent post-dated cheques to the City and would like to cancel the payment may do so by calling 311 by April 15, 2020.
Mayor's Task Force is co-chaired by Regional Councillors Michael Palleschi and Paul Vicente
Burlington City Council unanimously approved relief of penalty and interest for property taxes in the months of April and May 2020 and relief of the administration charge for any returned payments during that time. For more information and further assistance, businesses can reach out to (289) 337-5505 ext. 102, Monday to Friday between 9 a.m. and 5 p.m. As well, Team Burlington is planning a series of COVID-19 virtual business support forums to give business leaders the opportunity to ask questions and hear from subject matter experts. More details and registration information are available at burlingtonchamber.com.
Burlington's business support organizations (Team Burlington), which includes: Burlington Economic Development, Burlington Chamber of Commerce, Burlington Downtown Business Association, Aldershot Village BIA and Tourism Burlington.
The City of Calgary is giving customers the option to defer payments of their utility bills for a 3-month period, with no penalties or interest. Outstanding amounts owing will be divided up amongst the last six bills issued in 2020. As well, the Calgary Chamber of Commerce is at the table with the Business Sector Support Committee, and acting as the liaison between the Business Community and local government. Calgary City Council is cancelling any Business Improvement Area (BIA) tax penalties between April 1, 2020 and June 30, 2020. This means that any business that has not already paid their BIA tax has until June 30, 2020 to pay a penalty free. A penalty of 7% would apply to taxes outstanding as of July 1, 2020.
Under the Economic Response Plan, the City of Cambridge will launch immediate relief actions, including grace periods for penalties and interest on property taxes and water utility bills for the months of April and May 2020, and relaxed parking enforcement. City staff remain committed to continuing to review additional opportunities in the coming weeks.
The INVESTCambridge team is available by phone or email to help business owners navigate through this difficult period.
Durham local municipalities have adopted relatively consistent property tax assistance measures for businesses including: waiving the various property tax service fees including non-sufficient funds (NSF) charges and fess associated with making adjustments to pre-authorized payment plans (PAP); deferring collection activities; waiving interest and late payment charges for 60 days; and the majority of the municipalities have deferred the June 2020 property tax installment by 30 days. The Durham Economic Task Force continues to identify needs and opportunities.
Regional Chair and Mayor John Henry; Durham Region's Economic Development and Tourism team; Business Advisory Centre of Durham; all of Durham's Chamber of Commerce and Boards of Trade
The City of Edmonton is providing a grace period for no late penalties on tax payments made by August 31, 2020. In regular circumstances, penalties would be applied starting on July 1, 2020. More information will be available before tax notices are mailed in May. The City is also working with Alberta Utility Commission and utility partners on a deferral program and has recommended a deferral period of March 18, 2020 to June 18, 2020. Edmonton City Council approved the deferral of BIA Tax Levy payment penalties. BIA members who are in financial hardship due to the pandemic may delay their levy payments until September 30, 2020, and no late penalties will be applied.
Halifax Water customers may defer payments on accounts from March 13, 2020 to July 31, 2020. No interest will be charged during this grace period. Disconnection for non-payment of service is also suspended until July 31, 2020.
The Town of Halton Hills is offering temporary relief for taxpayers by removing all penalties and fees for those who need to defer payment. The grace period will run from April 1, 2020 to June 30, 2020. Taxpayers who are on the pre-authorized tax payment plan or those who have sent post-dated cheques for their upcoming installments, have the option of staying with the current terms or cancelling the payment by calling 905-873-2600 before 4:30 p.m. April 15, 2020.
Halton Region is extending the payment due date for its local municipalities from April 30, 2020 to June 30, 2020, along with other relief efforts including lowering the industrial tax ratio for businesses. All four local municipalities within Halton Region are offering tax relief to their communities - check with your local municipality for more information.
Hamilton City Council unanimously approved waiving penalties and interest on the April 30, 2020 municipal property tax installment for 60 days, until June 30, 2020. There will also be a 30 day waiver of penalties and interest on the June 30 installment. This tax relief is available to all property classes. Hamilton taxpayers who pay through preauthorized payment plans will need to notify the City if they want to opt out of their April 30 payment a week prior to that date.
The City of Kitchener is waiving penalties and interest on all utility bills through April 2020 and May 2020, and is waiving any late payment charges on utility bills and suspend all utility disconnections until May 31, 2020. The program could also be extended past May if needed. As well, the City is developing a centralized resource for businesses, for additional one-on-one support, to help Kitchener businesses navigate the various aid programs and apply for grants, funding or credits that may be available. More information to follow.
The Town of Lincoln is suspending all late fees and penalties on property taxes, payments of water bills, and accounts receivable until June 30, 2020. Water disconnections have been suspended. More information to follow.
The City of London is waiving interest and penalties for a 60-day period. All interest and penalties for unpaid interim 2020 property tax installments that come due on March 31, 2020 will be waived for a period of 60 days. All interest and penalties for unpaid water and wastewater billings will be waived for a minimum period of 60 days. All Community Improvement Plan (CIP) loan repayments will be deferred on an interest-free basis for a minimum period of 60 days. As well, London City staff will be reporting back to City Council on the impacts and potential costs of other options in June 2020. More information to follow.
The economic impact task force will work directly with London's business and industry leaders and organizations and will include: the Chamber of Commerce, London Economic Development Corp., LIUNA, large employers and the Better Business Bureau. Meetings will take place weekly, for as long as required.
The City of Markham announced the following supports for businesses: no late payment charges for non-residential property taxpayers from October 1, 2020 to December 31, 2020; deferral of the 2020 stormwater fees; elimination of the April 1, 2020 water rate increase of 7.8%; and suspension of the Municipal Accommodation Tax (MAT) from April 1, 2020 to December 31, 2020, to provide relief to hoteliers.
The Town of Milton is offering temporary relief for taxpayers by relaxing all penalties and fees for those who need to defer paying their property taxes. Neither interest nor late fees will be charged for taxes on April 1, 2020, May 1, 2020 or June 1, 2020. This grace period will extend to June 30, 2020.
The City of Mississauga is deferring property tax billings for a 3-month period. For the months of April, May and June and for properties enrolled in the City's pre-authorized payment plan, payment will be deferred to your chosen withdrawal date in the months of July, August, and September 2020, respectively. The 2020 interim tax levy installment dates of April 2, 2020 and May 7, 2020 will also be deferred to July 2, 2020 and August 6, 2020, respectively. It is important to note that these installment are required to be collected within the current year, which is why the deferral dates are detailed above.
Mayor Crombie and City Councillors along with Mississauga's Economic Development Office met virtually with members of the business community, including MBOT, local BIAs, and businesses representing key sectors, including Life Sciences, Aerospace, Clean Tech, Advanced Manufacturing, and IT were in attendence.
As Montréal proceeds slowly with reopening due to COVID-19, the city has once again extended the deadline for payment of the second instalment of municipal taxes. Owners and businesses can pay their last payment on September 1, 2020.
The Town of Newmarket is waiving all fees and interest related to late payment of property taxes for the March and April instalments for businessses. Newmarket Town Council also approved a tax deferral program. More information to follow.
The City of Niagara Falls is not charging any interest or penalties on overdue tax billings. Water disconnections have been suspended. Details of the policy will be given shortly. More information to follow.
The Town of Oakville is accepting property tax payments with no interest or late fees for up to two months. All property owners qualify for the deferral. The next tax installment is due on April 24, but it and all outstanding property taxes will be accepted at anytime up to June 30 without penalty. Property owners on pre-authorized payment plans (PAP) will be able to opt-out of the plans without consequence, as long as they do so by emailing PAP@oakville.ca prior to the 15th of the payment month. Please note once a property owner opts-out of the town’s PAP program, it is the property owner’s responsibility to reapply to the program if desired. Re-application will also have to be made before the 15th of the payment month. All NSF charges will be waived until June 30.
Additionally, Town of Oakville has introduced comprehensive online processes to allow building and development projects to advance during the COVID-19 pandemic. All planning, building, engineering and development applications and permits can now be submitted electronically, including rezoning and site plans. Staff will be reviewing and processing applications using new digital tools while working remotely and using video teleconference software.
The City of Ottawa is offering a penalty free payment grace period until April 15, 2020 to all property owners for the 2020 interim tax bill. Ottawa City Council also approved the creation of the 2020 Property Tax Hardship Deferral Prrogram for Ottawa small business property owners (assessed property value of up to $7.5M) that have been financially affected as a result of the COVID-19 pandemic. The program will extend the interim property tax and final property tax deadlines of March 19, 2020 and June 18, 2020 to Octover 30, 2020. Property owners must apply for the deferral before July 31, 2020 to be considered. Further, the City of Ottawa is providing an interest-free 30-day payment grace period on all unpaid water bills issued before April 1, 2020. For water bills issued between April 1 and October 30, the City is granting a 30-day extension on the due date.
Mayor Watson co-chairing with Councillor Eli El-Chantiry; Michael Crockatt, President and CEO of Ottawa Tourism; Mark Kaluski, Chair, Ottawa Coalition of Business Improvement Areas; Sueling Ching, President and CEO, Ottawa Board of Trade; Lise Sarazin, directrice generale, Regroupement des gens d'affairs; Carole Anne Piccinin, Executive Director, Ottawa Festival Network
Regina City Council approved the Utility Deferral Program, which allows businesses to defer utility payments for up to six months with no late payment charges or interest. Payment collection on overdue utility and property tax accounts will also be suspended. Tax notices will be issued on schedule in May 2020, however property owners will have until after September 30, 2020 before any penalties are applied.
The City of Saskatoon announced that it will continue all building permit inspections with the use of FaceTime and Skype video calls to complete these inspections. Any required documents are to be submitted electronically - details are on the City's website. More information to follow.
The City of St. Catharines is providing a grace period on its property tax and utility bills. Until June 30, 2020, businesses will not be charged late fees or interest penalties on water and tax payments, and accounts receivable. Water disconnections have been suspended.
The City will not be charging interest on commercial and residential property taxes or water meter tax up to and including August 31, 2020.
The City of Toronto is providing a 60-day grace period for pre-authorized property tax and utility payments as well as payment penalties, starting on March 16, 2020. The City will be suspending all pending automated withdrawals that have been scheduled for all businesses within the next 60-day period but not yet withdrawn. For property owners who have submitted post-dated cheques for upcoming instalments, all post-dated cheques will be held and not cashed until 60 days after the original instalment due date. The City is also extending the due date for all utility bills issued by an additional 60 days.
Mayor Tory; Councillor Thompson; Councillor Crawford
Toronto Building Permitting and Inspections have now resumed, with much of the services now coming back online with some modifications. Only electronic applications are being accepted and there are new standards for in-person inspections for health and safety. Priority is being given to permits applications received prior to the service disruption and new applications are being evaluated for a general timeline for processing.
Committee of Adjustment hearings are resuming starting June 3, 2020 and future meetings have been booked through July 31, 2020. The new meeting format will restrict agendas to a maximum of 20 items and priority is being given to items received by March 16 and those files that are completed. More complex cases requiring in-person meetings will be deferred to a later date. Based on the current backlog, it is expected that it will take a number of months to catch-up.
Staff are currently considering when full services, including accepting and reviewing Official Plan and Zoning By-law Amendments Draft Plan of Subdivision will be completely operational.
The City of Vancouver will be delaying all property tax payments for up to 60 days at its next Council meeting. Mayor Stewart has also asked the province of British Columbia to extend tax deferral programs for small businesses and property owners. More information to follow.
The City of Vaughan has implemented a series of temporary measures to safeguard the local economy and protect businesses, including: not requiring accommodation providers to charge the Municipal Accommodation Tax (MAT) at Vaughan Properties; and by ensuring, where possible, Small Business and Entrepreneurship frontline services are continued (either online or by phone). Further, the City of Vaughan is waiving the planned 2020 water and wastewater rate increases and deferring the annual stormwater charge for a 60-day period. The City is also waiving late penalty charges on interim property tax bills and extending the deadline for the Elderly Home-Owners Tax Assistance program.
Rapheal Costa (Manager, Small Business and Entrepreneurship)
Victoria City Council authorized the City’s Real Estate staff to look at potential options to provide relief for businesses located in City-owned properties on a case-by-case basis. City Council has also passed a motion to advocate on behalf of small businesses and non-profits by asking the Province for rent relief and the halt of evictions during the current state of emergency.
The Waterloo Region is looking to waive late payment charges, interest costs and non-sufficient funds (NSF) bank charges for the months of April 2020 and May 2020. This grace period would extend to all Regional accounts receivable, including water and wastewater billings, waste management invoices, child care centre accounts, etc. Also, Regional Council recommended that all lower tier municipalities recommend these actions to their respective Councils. Importantly, the suspension of late payment fees and penalties will be applied to property taxes which are billed by the lower tiers. More information to follow.
The City of Windsor is granting the following grace periods: the third instalment for 2020 interim property taxes has been changed from April 15, 2020 to June 30, 2020. All remaining pre-authorized payment withdrawals scheduled in the months of April, May and June will continue to be taken on the scheduled dates unless otherwise cancelled/adjusted by the property owner. All remaining postdated cheques for the April 15, 2020 instalment will be cashed on the scheduled dates unless cancelled by the property owner. Charges for non-sufficient funds (NSF) related to property tax payments will be waived through the period ending June 30, 2020. There will also be no late payment charges in either form, penalty and/or interest, through the period ending June 30, 2020.
Winnipeg Mayor Brian Bowman announced the establishment of the Mayor's COVID-19 Business Task Force. Business leaders along with Economic Development Winnipeg will discuss impacts to business community and mitigation measures. More information to follow.
The Task Force includes leaders of small, medium and large-sized businesses from Winnipeg, as well as Councillor John Orlikow, Chair of the Standing Policy Committee on Innovation and Economic Development.