Association welcomes extension to CEBA, but warns struggling business owners need more time and support
Amid continued infections, recurrent lockdowns, and a slow-going COVID-19 vaccine rollout, this year’s tax season promises to be more stressful than usual for Canadians. That’s even more true for small-business owners hit by the pandemic, which has prompted the Canadian Federation of Independent Business (CFIB) to ask the government for a little leniency.
“Tax season always places a heavy administrative burden on small businesses but no more so than this year given the uncertainties many are dealing with on an ongoing basis and the additional complexity created by the various government support programs,” Corinne Pohlmann, CFIB’s senior vice-president of National Affairs, said in a statement.
Pohlmann noted that the U.S. federal government has already announced some extensions to its tax filing deadline.
The U.S. Treasury Department and the Internal Revenue Service has pushed back the deadline for individual income tax filing from April 15 to May 17, and has given individual taxpayers leeway to postpone their federal income tax payments for the 2020 tax year to May 17 without penalties or interest.
“If Canada follows their example and gives small businesses more time to file taxes, it would give many the boost they need to help get them through the next few months,” Pohlmann said.
To give businesses the chance to recover more fully, CFIB is urging Ottawa to extend tax filing deadlines and delay GST/HST remittances until at least fall of 2021. Citing a recent survey it conducted, the group said nearly two thirds (63%) of businesses said tax deferrals would be helpful to them.
Speaking for CFIB, Pohlmann also lauded the government’s announcement Monday extending the application deadline for the Canada Emergency Business Account (CEBA) to June 30. However, she added that there are still aspects of the program that must be fixed.
“Many businesses are still unable to access the program or are stuck in administrative limbo,” she said.
Noting that some CEBA applicants are still waiting on approval due to technical issues, Pohlmann said CFIB is requesting that the government quickly review such applications.
As for businesses that have been shut out of the program because they started after March 1, 2020, Pohlmann said the association is urging the government to allow them to apply if they meet the other eligibility criteria for CEBA.
“Expanding the loans to $80,000 with a 50 per cent forgivable portion would be a further step in the right direction, as businesses continue to struggle,” she added.
