QUEBEC- Department of Finance – Government Action – Covid-19 Response

QUEBEC- Department of Finance - Government Action – Covid-19 Response

Here is a summary of some of the relevant Québec government action taken so far.

Deadline and payment deferral

Quebec has announced filing deadline and deferred payment provisions to harmonize with the Federal provisions which are noted below. However, one key difference is that Quebec also extended the partnership return deadline to May 1 (this was not announced by the Feds).

On the Federal side, the personal tax filing due date for the 2019 tax returns of individuals has been extended to June 1, 2020, and for trusts that have a taxation year ending on December 31, 2019 to May 1, 2020. However, there is no mention of any extension related to the filing of corporate income tax returns and unlike Québec, there is no mention of any extension to the due date of partnership returns.

Furthermore, all taxpayers will be allowed to defer until after August 31, 2020 the payment of any income tax amounts that became owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. 

Also, the CRA Charities Directorate has announced it is extending the filing deadline to December 31, 2020, for all charities with a Form T3010, Registered Charity Information Return due between March 18, 2020 and December 31, 2020.

Concerted temporary action program for businesses (PACTE)

This is a new emergency funding for Quebec businesses whose liquidity is affected by the repercussions of COVID-19.  

This financial assistance is available to businesses operating in Québec. Eligible businesses are those that find themselves in a precarious situation and temporary difficulty as a result of COVID-19. They must show that their financial structure offers realistic prospects for profitability and that the cashflow problem is only temporary. The minimum funding amount is $50,000.

The applications will be reviewed case by case by Investissement Québec.

For more details : https://www.investquebec.com/quebec/en/financial-products/all-our-solutions/Concerted-temporary-action-program-for-businesses.html

Financial support for those who may not qualify for EI

The QC government has proposed the Temporary Aid for Workers Program which would provide a lump-sum of $573 per week, for a period of 14 days of isolation. It might go up to 28 days depending on your health. This benefit is meant to provide income support to workers, including the self-employed, who are quarantined or sick with COVID-19 or present symptoms and that are not receiving any compensation by their employer, or a private insurance and are not covered by another government program such as EI from the federal government. It only applies to workers aged 18 or over.

https://www.quebec.ca/en/family-and-support-for-individuals/financial-assistance/temporary-aid-for-workers-program/

Administrative proposals

Electronic signatures will be accepted in respect of TP-1000.TE and CO-1000.TE and in respect of any signature requirements mentioned in the Taxation Act.

Following the Federal announcement, there is a six-month interest-free moratorium on the repayment of Quebec Student Loans for all individuals currently in the process of repaying these loans

There is also a lot of payments that can be delayed without penalties or interests such as city tax bills, Hydro Quebec bills, etc.

Author

Mona Tessier, CPA, CA
Principal, Indirect Tax Specialist
mtessier@welchllp.com
613-236-9191 #207