CRA and COVID-19: Changes to taxes and benefits
COVID-19 has affected millions of people around the world, slowing down all the institutions and complicating all kinds of bureaucratic proceedings.
One such important change in the institutions is the filing of tax returns and the changes made into it due to COVID 19. The Canada Revenue Agency (CRA) has decided upon a host of laws and tax benefits that will help the citizens not only return their tax statements but also get several tax rebates. Given below are a few of the different laws by CRA helping the citizens.
CRA Rules and Rebates
Rebate on income tax
The revenue agency is demanding that citizens who received government relief packages for COVID 19 mention the amount on their income tax returns. It has issued different forms like T4A and T4E which help in easy returns. The government has also announced Interest relief for individuals with a taxable income of $75,000 or less in 2020 and received a COVID-19 benefit. To help people pay taxes over time the government is also allowing them to pay the amount over a duration of time.
Canada Recovery Benefit
This plan helps individuals who are directly affected by COVID-19. Self-employed and employed people who are not eligible for employment insurance can take benefits of this plan by getting about $ 1000 for a two-week period. Citizens can apply for up to 13 periods until they are in a better situation.
Canada Recovery Caregiving Benefit
The Canada Recovery Caregiving Benefits gives income support to individuals who cannot work as they have to stay at home to take care of their children below 12 years or a senior citizen who needs special care. This particular plan by the CRA gives eligible individuals about $500 for a one-week period and they are eligible to apply again for a total of 26 weeks.
Canada Recovery Sickness Benefit (CRSB)
The Canadian government is also helping people who are in self-isolation due to COVID-19 or have a greater risk of contracting it. This helps individuals who cannot work in that period focus on recovery and not worry about their financial status. Eligible individuals can get up to $ 500 for a week and reapply again once.
Canada Emergency Rent Subsidy (CERS)
The CERS is made specifically for businesses, charities, and non-profit organizations that have taken a significant hit in their revenues over the past year. Under this plan, the government directly provides a sum to these organizations and individuals which they can then use to cover their property or rent expenses.
The government has issued a large number of care packages as can be seen above. Still to properly get them an experienced tax and accounting professional is required. The Accounting and Tax company is a Tax consultant in Toronto.
Being a Canadian tax consulting service, the enterprise can easily help customers apply for the different COVID relief plans and even clearly file the tax returns.
