Starting 2021, new trust income tax return filing and information reporting requirements will come into effect for most Canadian trusts.  Non-resident trusts that are required to file a T3 trust tax return are also subject to the new rules.  The changes were announced in the 2018 federal budget and will be applicable for trust taxation year ending on or after December 31, 2021.

The federal government’s Canada Emergency Rent Subsidy (“CERS”) opened for application on November 23, 2020.  The CERS program replaces the Canada Emergency Commercial Rent Assistance program (CECRA) and is designed to subsidize businesses, charities and non-profits that have suffered a revenue drop due to COVID-19.

On November 5, 2020, Ontario Minister of Finance Rod Phillips announced the province’s 2020 Budget.  Highlights of the tax measures in the 2020 Budget are discussed below:

On October 1, 2020, the Government of Ontario announced a change under the Trust in Real Estate Services Act, 2020 that will allow real estate agents (“Agents”) to incorporate and be paid through a Personal Real Estate Corporation (“PREC”).  

The developments on the COVID-19 pandemic have been numerous and developing rapidly since the Government of Canada passed the first COVID-19 Emergency Response Act approximately one month ago.

This Tax Update looks at some of the more recent measures intended to provide relief to Canadian small businesses and taxpayers:

1. the Canada Emergency Wage Subsidy
2. the Canada Emergency Business Account loan program
3. the Business Credit Availability Program
4. Canada Emergency Commercial Rent Assistance