Financial Support

The WTABC is keeping abreast of promises made by the Government of Canada regarding compensation for affected businesses and will assist its members with claims. The provincial government confirmed it is working with its federal counterpart on support for affected workers, and on broader supports for the B.C. economy and impacted industries.

CURRENT FINANCIAL RESOURCES BEING PROVIDED BY GOVERNMENT OF CANADA

(click on the green links below to find out more about each program)

MARCH 27 UPDATE

On March 27 the government announced the following support for small businesses:
[FULL PRESS RELEASE]

WAGE SUPPORT

For employees continuing to work, employers can receive a temporary wage subsidy equal to 75% of renumeration for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. 

GST

All Goods and Services Tax/Harmonized Sales Tax (GST/HST) payments can be deferred until June, as well as customs duties owed for imports.

INTEREST FREE LOANS

The new Canada Emergency Business Account will provide funding to eligible financial institutions so that they can provide interest-free loans in the form of lines of credit of up to $40,000 to businesses with payrolls of less than $1 million. A quarter of this loan (up top $10,000) is eligible for complete forgiveness. Loans are to be repaid within one year.

OTHER ANNOUNCEMENTS

Employment Insurance Benefits – on March 25 the government announced to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit. Check the Canadian Government COVID-19 Employment Insurance (EI) Notification Page for application details and updates. The application form will be available through a Government of Canada portal on April 6. 

Flexibility for Businesses Filing Taxes – government is allowing all taxpayers to defer, until after August 31, 2020, the payment of income tax amounts owed on or after March 18 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.

The Business Development Bank of Canada and Export Development Canada (EDC) will provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses. Applications available on each website.

For further details (mortgages, individual tax return deadlines, etc.) visit: Support for Canadians and Businesses  and Helping Canadians with the economic impact of the COVID-19 Pandemic

CURRENT FINANCIAL RESOURCES BEING PROVIDED BY PROVINCE OF BRITISH COLUMBIA

(click on the green links below to find out more about each program)

Province Press Release – March 23, 2020

Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020. Businesses with a payroll under this threshold are already exempt from the tax.

In addition to the employer health tax, the Province is extending tax filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax, tobacco tax, motor fuel tax and carbon tax until Sept. 30, 2020. The scheduled April 1 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, will be delayed and their timing will be reviewed by Sept. 30, 2020.

Business and light- and major-industry property classes will see their school tax cut in half. This will provide $500 million in immediate relief for business that own their property and allow commercial landlords to immediately pass savings on to their tenants in triple-net leases.

In the longer term, the recovery plan will dedicate funding to particularly hard-hit parts of the economy, such as the tourism, hospitality and culture sectors. The B.C. government is partnering with business and labour leaders to build an economic stimulus plan. The Province has allocated $1.5 billion for economic recovery.

TIABC in conjunction with WTABC and several other tourism organization have sent a letter to Honourable Lisa Beare Minister of Tourism, Arts and Culture outlining Proposed Government Measures to Assist BC’s Tourism and Hospitality Industry. READ LETTER