Tax Measures Under Canada’s COVID-19 Economic Response Plan

Revenue Quebec offices that closed during the height of the pandemic will reopen on August 17, 2020, to make payments, obtain forms, and drop off documents.

Measures for corporations 

  • The payment deadline[153] for tax instalments and any income tax balance owing that would otherwise be due between March 17 and September 29, 2020, has been extended to September 30, 2020. Any payment not received by September 30, 2020, will accrue interest starting October 1, 2020.
  • The filing deadline for income tax returns that would otherwise be due between June 1 and August 31, 2020, has been extended to September 1, 2020.
  • The Concerted Actions Program for the Maintenance in Employment (“PACME[154]”) reached its maximum financial capacity as of May 27, 2020, for the business component and June 15, 2020, for the collective promotors component. Therefore, businesses are no longer able to submit applications for the PACME and are directed towards the standard offers of measures, programs and services aimed to help businesses. The PACME was implemented to provide direct subsidies to businesses (and certain independent contractors) for eligible training costs to implement good human resource management practices and optimize business efficacy and operations to help them maintain their activities during the pandemic.
  • According to the June 29 IB, tax legislation will be amended to provide for an ad hoc adjustment to the calculation of a corporations’ remunerated hours, which will apply for the given taxation year. This change is intended to limit the impact of the temporary suspension of corporations’ activities on the small business deduction (“SBD”). Accordingly, where all or part of the period that begins on March 15, 2020, and ends on June 29, 2020, (the “closing period”) is included in a corporation’s given taxation year, the number of remunerated hours determined in respect of the corporation’s employees, for the given year, will be deemed to be equal to the product obtained by multiplying the number of remunerated hours otherwise by the ratio of 365 to the number of days in the given year in excess of the number of days in the closing period in the given year. This ad hoc adjustment will also apply to the calculation of the remunerated hours of a partnership with the necessary adaptations for a fiscal year.
  • Businesses that are unable to pay their debt in a lump sum because of their financial situation may be able to spread their payments out over time, based on their ability to pay, until their debt and interest is paid in full. Details can be found here[155].
  • The deadline for filing form RD-222-V, Deduction Respecting Scientific Research and Experimental Development Expenditures, and any prescribed form related to the following has been extended until December 31, 2020, applicable to:
    • refundable tax credits for businesses;
    • the following non-refundable tax credits:
      • the tax credit for salaries and wages (IFC),
      • the tax credit for the development of e-business.

    [156]

However, the extension only applies if the filing deadline would normally fall between March 17 and December 30, 2020.

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