Ontario announces action plan providing support for individuals and businesses
On March 25, Finance Minister Rod Phillips released Ontario's Action Plan: Responding to COVID-19 (March 2020 Economic and Fiscal Update).
The government's action plan is a first step in its response to COVID-19 and includes $7 billion in additional resources for the health care system and direct support for people and jobs. It also will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets.
Among other things, the action plan includes:
Cutting taxes by $355 million for about 57,000 employers through a proposed temporary increase to the Employer Health Tax (EHT) exemption. The EHT exemption is temporarily increased from $490,000 to $1 million, retroactive to January 1, 2020. Those who have already paid will have their returns corrected.
Making available $6 billion by providing five months of interest and penalty relief (i.e., until September 1, 2020) for businesses to file and make payments for the majority of provincially administered taxes such as employer health tax; tobacco tax; fuel tax; gas tax; beer, wine, and spirits tax; mining tax; insurance premium tax; international fuel tax agreement; retail sales on insurance contracts and benefit plans; and race tracks tax.
Relief is automatic without any need to notify the Ministry of Finance. Penalties and interest for the relief period will be waived automatically. There is no requirement to show the impact of COVID-19 on staff or daily operations. Pre-existing debts owing to the government (outstanding taxes, interest, penalties) from previous filing periods will, however, continue to accrue interest during the relief period.
For more information on Ontario’s action plan, please see: https://news.ontario.ca/mof/en/2020/03/ontarios-action-plan-responding-to-covid-19.html?utm_source=ondemand&utm_medium=email&utm_campaign=o
For Ontario’s March 2020 Economic and Fiscal Update in response to COVID-19 (of relevance for tax matters), please see: https://budget.ontario.ca/2020/marchupdate/pdf/2020-marchupdate.pdf
Ontario launches $50 million fund for businesses producing COVID-19 equipment & supplies
On April 1, the government launched a new $50 million Ontario Together Fund to help businesses provide innovative solutions or retool their operations in order to manufacture essential medical supplies and equipment, including gowns, coveralls, masks, face shields, testing equipment and ventilators.
This fund will support the development of proposals submitted by businesses and individuals through the Ontario Together web portal.
For more information, please see: https://news.ontario.ca/opo/en/2020/04/ontario-joins-forces-with-the-private-sector-to-fight-covid-19.html
Ontario announces electricity relief for families, small businesses and farms
For a 45-day period, the Government of Ontario has suspended time-of-use electricity rates, holding electricity prices to the off-peak rate of 10.1 cents-per-kilowatt-hour - 7 days a week, 24 hours a day.
For more information, please see: https://news.ontario.ca/opo/en/2020/03/ontario-providing-electricity-relief-to-families-small-businesses-and-farms-during-covid-19.html.
Ontario government allows businesses to defer WSIB premium payments for six months
The Ontario Government is enabling $1.9 billion in relief for employers to reduce the financial strain brought on by COVID-19. The measure, which will run through the Workplace Safety and Insurance Board (WSIB), will see premium payments deferred for six months (until August 31) for all businesses in the province.
For more information, please see: https://news.ontario.ca/mol/en/2020/03/ontario-enabling-financial-relief-for-businesses-1.html
Deferring remittance of education property tax
The quarterly (June 30) remittance of education property tax to school boards will be delayed by 90 days, with the intention being that municipalities provide property tax deferrals locally.
New guidelines for Ontario charities in need of access to restricted funds
The Ontario Public Guardian and Trustee has developed temporary guidelines to assist Ontario charities in danger of closing, allowing eligible charities to access the income and capital of restricted purpose trust funds for operating expenses. Read more here.