Canadian government provides emergency COVID-19 support
On March 18, 2020, Prime Minister Justin Trudeau announced a new set of economic measures to help stabilize the economy in response to fallout resulting from the COVID-19 outbreak. On March 25, the COVID-19 Emergency Response Act was passed by the House and Senate, and received Royal Assent.
The $82 billion stimulus package will support Canadians and Canadian business, with $27 billion allocated for direct support and $55 billion in liquidity through tax deferrals (note, as there are likely more measures to come, these figures could change). Two measures that may help work truck industry businesses during this challenging time are
- Flexibility for businesses filing taxes. Canada Revenue Agency (CRA) will allow all businesses to defer until after Aug. 31, 2020, the payment of any income tax amounts that become owing on or after today [March 18, 2020] and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
- Helping businesses keep their workers. To support businesses facing revenue losses and to help prevent layoffs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
There are also numerous measures to provide financial support to individuals whose work has been affected by COVID-19.
Provincial governments move to close non-essential businesses
Ontario and Quebec governments both announced on Monday, March 23, that all non-essential businesses in each of their respective provinces would close in an attempt to slow the spread of COVID-19.
In Ontario, all manufacturing along with integrated supply chains are considered essential and will not close. The closures in Ontario
apply to work truck industry companies. See a
of essential workplaces in Ontario.
In Quebec, however, the list of priority manufacturing activities deemed essential is narrower than Ontario’s definition and does not appear to include the types of manufacturing activities associated with the work truck industry. Therefore, the closures of businesses in Quebec
to work truck industry companies. Please consult the detailed
list of priority services and activities
. For more information, contact the Quebec government at 877-644-4545.
Other provinces may announce similar closures in the coming days and weeks.