Tag: Canada Emergency Response Benefit

IS CERB TAXABLE? EXCLUSIVE REPORT AS TO WHAT HAPPENS WHEN YOU DON’T HAVE THE MONEY TO PAY OFF YOUR TAX RETURN

Post author By Brandon Smith
Post date March 17, 2021

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Is CERB taxable? CERB is a taxable payment

Last weekend we set our clocks ahead 1-hour. This time of year always gets me thinking of doing my income tax return. So with taxes on my mind, I believed it would certainly be appropriate to discuss CERB, which is the short-hand for the Canada Emergency Response Benefit.

So, is CERB taxable? That is what I want to discuss with you today.

Since March 2020, I have written several blogs about different issues facing Canadians with Canada’s COVID-19 Economic Response Plan, including the Canada Emergency Response Benefit (CERB). My 3 previous blogs on CERB were:

Now I look at is CERB taxable?

Is CERB taxable? What is the CERB?

Simply to freshen your memory, I think a summary of the CERB eligibility requirements will nicely establish the stage.

To be eligible for the $2,000 CERB payment by applying through the Canada Revenue Agency (CRA), you needed to have met specific CERB requirements for each of the CERB time periods you were making an application for. The Government of Canada specified the eligibility requirements to be:

You didn’t obtain CERB or Employment Insurance (EI) from Service Canada for the CERB dates now being requested.
You did not voluntarily give up your work.
You live in Canada and are not younger than 15 years of age.

You earned at least $5,000 (before taxes) in the preceding 12 months, or in 2019, from 1 or even more of:

job income;
self-employment income;
provincial benefits for maternity or parental leave;
your job hours have been lowered as a result of COVID-19;
you have actually quit or will give up work as a result of COVID-19;
you are not able to work as a result of COVID-19, for example, because you are looking after an individual;
you have been paid EI benefits for at least one week of qualifying after December 29, 2019, and your entitlement to such benefits have ended;
this is your first application because:
- you have quit or will stop working, or you are working decreased hours, as a result of the coronavirus;
- you don’t expect to earn over $1,000 in gross work or self-employment earnings for at least 14 days right during the 4-week duration.
  If you are getting a subsequent period: You are still not utilized or self-employed, or you are doing decreased hrs due to COVID-19. You do not prepare for transforming $1,000 in gross income; and
- you expect this to continue throughout the whole 4-week period you are applying for.
  is CERB taxable

The CERB emergency benefit: Our federal government started to attack the self-employed

The Canadian CERB program is completed. The CRA approved and paid retroactive applications until December 2, 2020. Currently, they are doing audits to see if individuals who received CERB did not really qualify.

As you may recall, this revealed a one-of-a-kind issue to the self-employed individual. CRA was inconsistent in their descriptions and definitions of the threshold to get CERB. The concern that was uncovered for self-employed people was in the computation of income. The qualification guidelines and eligibility standards concerning self-employed earnings had been misunderstood by both the public and CRA employees alike!

Self-employed Canadians have said that when they reviewed the federal government’s CERB site, they understood that their business had to have earned (before taxes) a minimum of $5,000. CRA stated that the $5,000 was net income, your business earnings after deducting all your expenses. Numerous people understood it to be gross earnings as meeting the income test requirement for obtaining CERB. The federal government originally stated that those that misunderstood this regulation would need to pay all the CERB back. Luckily for them, the government has withdrawn from that position and will just rely upon the income tax system to determine what those people will have to pay in income tax.

Now for is CERB taxable?

Is CERB taxable? Report T4E amounts on your tax return

Along with any other income you might have earned in 2020, if you got the CERB or other emergency benefits from Service Canada or any kind of EI payments, you will certainly be sent out a T4E tax slip showing the amount paid. So is CERB taxable? Sadly, yes.

These benefits are taxable. Any of this kind of payment you received prior to December 31, 2020, will certainly need to be reported on your 2020 tax return. You will receive a T4E slip at tax time or you may also get your T4E info from your My Service Canada Account.

Maximize your tax planning for CERB before our debt-ridden government comes looking for more

When I think of tax planning, I think of ways to avoid (but not evade) income tax. In the case of CERB and other such benefits, the planning is really making sure you actually have the money to pay your 2020 income tax liability. The reason for this was that, unlike employment income, no income tax was deducted at source for the CERB payments. The federal government wanted to get the money out as quickly as possible without extra bookkeeping.

How much tax will I have to pay on CERB is a question people ask. Given the duration that the benefits lasted for, the maximum CERB that Canadians might have obtained is $12,000 of revenue. Nevertheless, the amount of income tax obligation that you will owe cannot be calculated on this number alone. It will be calculated based on the full amount you made throughout the year.

Because the sum total of CERB paid to you is taxable income, it will be reported on line 11900 of the 2020 income tax return. That amount, in addition to any other sources of income, works through your income tax return to end up with your total taxable income and your total deductions. After that, you determine your income tax obligation, what taxes at source were subtracted or tax paid by you in instalments. The net amount is either tax payable or a tax refund. So the income tax payable on the CERB payments you obtained relies on what your marginal tax rate is.

Contributing to an RRSP may have been the only other way to reduce your total taxable income and therefore your total income tax. However, in a year where you had to rely on CERB, you may not have had surplus funds to contribute to an RRSP in 2020 or the first 60 days of 2021.

Is CERB taxable? When do I have to pay CERB taxes?

Unlike our 2019 income tax returns, there are no extensions being offered this year. The filing deadline for your 2020 income tax return is April 30, 2021, for most people. A self-employed person has until June 15, 2021, to file their income tax return. However, anyone who has a tax balance owing to CRA must pay it by April 30.

What if I didn’t set aside taxes for CERB? What happens when you can’t pay the tax on your CERB tax debt?

If you really did not reserve the right amount, or anything, to pay your taxes for CERB, and you find that you owe a substantial amount (possibly not hideous if CERB was your only earnings in 2020) then you’ll still have to figure out how to pay your taxes.

This situation resembles the majority of self-employed people whose taxes are not subtracted at source and need to be really attentive at reserving cash from their income to pay their income tax obligations. If they don’t have the funds readily available, they need to clamber to find the money for the CRA.

After your tax return is prepared, if you recognize you don’t have the cash to pay the tax owing, talk with your tax advisor. Perhaps they can establish a realistic timetable to offer CRA to pay your tax bill over some months using a current dated cheque and a few post-dated cheques to cover off the balance. This will give you the breathing room and financial help that you need.

However, the COVID-19 pandemic has left many Canadians in dire straits. They have barely enough money to pay for food and rent or mortgage payments, let alone income tax. If you find yourself in a situation where post-dated cheques are not even a possibility, contact a licensed insolvency trustee. We will provide you with a free consultation where we will go over your financial situation with you and make recommendations.

If you are working again and have a steady income, perhaps a consumer proposal is right for you. If you are not back at work or do not have full hours as you did before the pandemic, perhaps bankruptcy is your answer. Either way, contact a licensed insolvency trustee and find out what all your viable options are to settle your debts and eliminate that stress from your life.

Is CERB taxable summary

I hope you have enjoyed this is CERB taxable Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.

You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation.

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Tags Canada Emergency Response Benefit, Canada Revenue Agency (CRA), cerb, CERB eligibility requirements, CERB emergency benefit, CERB is a taxable payment, COVID-19 Economic Response Plan, emergency benefits, how much tax will I have to pay on CERB, Ira Smith Trustee, is cerb taxable, Report T4E amounts on your tax return, self-employment income, Service Canada, T4e, tax planning for CERB, taxes at source, what is the CERB

Brandon Blog Post

THE I NEED FINANCIAL HELP IMMEDIATELY CANADA PLAN TO BECOME FINANCIALLY STRONG

Post author By Brandon Smith
Post date December 23, 2020

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

We hope that you and your family are safe and healthy. For those that celebrate it, we wish you all a very Merry Christmas. To everyone, we wish you a healthy, happy and secure 2021.

I need financial help immediately Canada introduction

“I need financial help immediately Canada” is something we have heard daily as a result of the COVID-19 pandemic. Many have either lost their jobs entirely or have had their hours cut back dramatically. Canadians have been battling to make ends meet daily. It is therefore not a shock that individuals have been looking for financial assistance from the Federal Government throughout and other methods just to say afloat.

Sadly yet at the same time thankfully, the Government of Canada and the Provinces, including where I live, Ontario, acted quickly to provide some emergency financial relief. This Christmas holiday season will be very different for so many individuals in Canada and internationally.

The purpose of this I need financial help immediately Canada Brandon’s Blog is to look at where we have come from so far from the onset of COVID 19 so far in Canada and what financial assistance programs remain for individuals in Canada in the weeks and months ahead for 2021.

***I need financial help immediately Canada*: A review of 2020 emergency benefits for individuals**

Canada Emergency Response Benefit (CERB)

The main program for individuals saying “I need financial help immediately Canada” was the CERB, which is now closed. CERB payments cannot be released after December 31, 2020. The application window for retroactive CERB applications closed on December 2. Applications need to be authorized by today in order for the funds to be paid out in time.

This coronavirus induced support program has helped millions of individuals with income support payments in 2020. The most recent published Federal Government statistics are only as of October 4, 2020. That information published by the Government of Canda indicates that:

27.57 million applications were submitted
$81.64 billion was paid out to provide financial assistance

The final numbers are not in yet, but it is clear that over $100 billion will have been paid out in CERB monthly payments.

CERB and the self-employed

In previous blogs, I provided a summary of who was eligible for CERB payments. You will also recall the ongoing snafu that occurred to self-employed people in what the Canada Revenue Agency (CRA) claims that they misinterpreted the minimum income requirements. I explained that whole kerfuffle in my recent blog “CERB REQUIREMENTS: ASTONISHING MIXUP UNDERSTANDING CERB REQUIREMENTS LEADS TO A BAD OUTCOME“.

I notice that even right now, the Government of Canada website shows:

“The Benefit is available to workers:……

Who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application;…”

So the Federal Government’s own website still shows a misleading description of which self-employed individuals were eligible for CERB. If the interpretation is really “net income” as CRA contends, shouldn’t their own website say that? Self-employment income is a misleading term. “Self-employment net income” is a standard accounting term and is what CRA says it meant.

It is unfortunate that the self-employed who are screaming to our Federal politicians “I need financial help immediately Canada” cannot rely on the plain English words on the government’s own website.

CERB was part of Canada’s coronavirus economic response plan. Additional financial assistance was given to individuals by the Government of Canada in the form of:

Employment insurance program

Temporary modifications to the employment insurance program (EI) to better support Canadians who require financial aid. Since September 27, 2020, the minimum payment is $500 weekly on a gross basis (before income tax).

Canada Recovery Sickness Benefit (CRSB)

The CRSB gives $500 each week for as much as 2 weeks, for employees that:

Are not able to work for a minimum of 50% of the week due to the fact that they have gotten ill with coronavirus.
Are self-isolated for reasons connected to the coronavirus.
Have underlying conditions, are going through treatments or have acquired other sicknesses that, in the viewpoint of a medical practitioner, nurse practitioner, individual in authority, government or public health authority, would make them more prone to contracting the coronavirus.

Canada Recovery Caregiving Benefit (CRCB)

The CRCB offers $500 weekly for up to 26 weeks per household for employees:

Incapable of working at least 50% of the week since they are parents with children who need to care for a youngster under the age of 12 or family member since schools, day-cares or care facilities are shut because of the coronavirus since the child or member of the family is sick and/or required to quarantine or goes to high danger of severe illness because of the coronavirus.

Mortgage payment deferral

Most mortgage deferral programs have now ended. House owners who said I need financial help immediately Canada, who needed a time out from making their mortgage payments, might have qualified for a mortgage payment deferral.

The deferral was an agreement between the borrower and the banks or other mortgage lenders. I described the program in more detail in my blog “MORTGAGE DEFERRAL CANADA IS ENDING: 3 KILLER WAYS TO DEAL WITH COVID-19 RELATED MONEY PROBLEMS“.

These were the programs to help the average Canadian feeling the pinch and saying “I need financial help immediately Canada” because of the Covid 19 pandemic.

***I need financial help immediately Canada*: A review of 2020 emergency benefits for businesses**

Canadian small businesses have no doubt been hit the hardest in this Covid 19 mess. Provinces and regions within provinces have had differing approaches in severity, but they have all involved lockdowns. Due to the variety of goods sold in some big box stores, they have been allowed to stay open while specialty small retailers who spent money on making sure they abided by all Covid 19 protocols had to shut down. This has been especially hard on small retailers during the holiday retail shopping season.

There were several programs paying various amounts available as support for businesses. In no particular order, the main Government of Canada support programs for businesses are:

Canada Emergency Wage Subsidy (CEWS)

The Federal Government is paying up to 75% of employees’ salaries for qualifying eligible employers, with this CEWS subsidy rate now running until June 2021. The CEWS wage subsidy allows businesses to maintain and also re-hire staff members and hopefully stay clear of having to lay off employees.

Canada Emergency Business Account (CEBA) interest-free loans

The CEBA supplied an original amount of $40,000 in interest-free loans, to small businesses and not-for-profits. This program is to help support small businesses that have seen revenue drops because of the coronavirus yet face continuously fixed costs.

The government has just recently increased CEBA to consist of an additional interest-free $20,000 funding, raising the maximum amount to $60,000. If paid off by December 31, 2022, the amount of $20,000 is forgiven. If not, interest begins being charged on the full amount.

Businesses have until March 31, 2021, to apply for the $60,000 CEBA loan or the $20,000 increase. Applications are made to the banks or credit unions with which the business maintains one or more business accounts.

Canada Emergency Commercial Rent Assistance Program (CERC)

On Friday, April 24, Prime Minister Justin Trudeau revealed the launch of the CERC for small businesses that were strongly affected by the coronavirus pandemic and the resultant first lockdown. It was developed to reduce premises rent costs by 75 percent for affected local businesses.

The CERC was supposed to provide forgivable loans for commercial landlords that qualify under the strategy to cover half of the three normal monthly rent payments. It was designed to assist local businesses experiencing financial difficulties throughout April, May and June 2020.

The expense and monitoring of the CERC were shared by the provinces and the feds. So in Ontario, the Ontario provincial government and the Canadian Government were to share equally. Unfortunately, the program, like many of the others, had to be created very quickly. Although commercial tenants wanted this relief, the program was largely unsuccessful due to many uncooperative commercial landlords.

Canada Emergency Rent Subsidy (CERS)

As a result of this and businesses still clamouring “I need financial help immediately Canada“, the CERS program came into being replacing the CERC.

The CERS supplies a direct and easy-to-access rental cost and mortgage aid of approximately 65% of eligible expenditures to qualifying services, charities and non-profits. The aid prices hold up until December 19, 2020. This support is offered straight to lessees.

Lockdown Support

Businesses that have been substantially limited by a required public health order issued by a qualifying public health authority are truly screaming “I need financial help immediately Canada” and for good reason. They can obtain an added 25% of rental assistance via the Lockdown Support.

The consolidated impact of the rental cost subsidy and the Lockdown Support is that hard-hit companies, non-profits and charities subject to a lockdown can receive commercial rent assistance of a maximum of 90%.

The CERS and the Lockdown Support are both offered for businesses until June 2021.

Loan Guarantee for Small and Medium-Sized Enterprises

Through the Business Credit Availability Program, Export Development Canada (EDC) is dealing with banks and other financial institutions for this emergency loan program. The EDC will guarantee 80% of brand-new operating credit as well as term loans of as much as $6.25 million to both small and medium-sized businesses (SMEs).

This funding assistance is to be made use of for operational expenses as well as is available to both exporters and non-exporting firms.

This program is currently readily available at different banks and credit unions. This support is offered until June 2021.

Canada United Small Business Relief Fund

The Canada United Small Business Relief Fund gives grants of up to $5,000 to local businesses. These funds can be utilized for eligible expenses of particular initiatives: buying PPE, refurbishing physical rooms, or developing your website or e-commerce abilities.

These are the main programs for Canadian businesses saying to Ottawa “I need financial help immediately Canada” due to difficulties brought on by Covid 19.

***I need financial help immediately Canada*: 2021 emergency measures for individuals and businesses**

Now that I have reviewed the 2020 programs, some of which are continuing, I want to highlight the help for financial hardship that is still available in 2021 for the many who are still saying to Ottawa “I need financial help immediately Canada“. I caution that the information is as of the date of Brandon’s Blog. Any changes, additions or cancellations of or to support programs due to the Covid 19 crisis are not reflected.

I need financial help immediately Canada – Individuals

Canadians who still say to our federal politicians “I need financial help immediately Canada” can still avail themselves of several programs. The first is the Canada Recovery Benefit Fund (CRB). The CRB essentially replaces the CERB.

The CRB gives $500 weekly for no more than 26 weeks as a Covid 19 response. It is for people that have quit working or had their income lowered by at least 50% because of the coronavirus, and that are not qualified for Employment Insurance Benefits.

The main remaining programs available to individuals saying in 2021 “I need financial help immediately Canada“, are:

EI
CRSB
CRCB

I need financial help immediately Canada – Small Businesses

The main remaining emergency federal support programs for small businesses still saying “I need financial help immediately Canada” are the CEWS, CEBA and the CERS. They are all explained above.

I need financial help immediately Canada summary

I hope that you have enjoyed this I need financial help immediately Canada Brandon’s Blog. The COVID-19 pandemic has brought health damage and financial concerns to many Canadians.

The Canadian government quickly invoked many new financial support programs for both Canadian companies and individuals to try to lessen the financial strain and bring peace of mind to many.

For all the various glitches, the Federal Government has done a very decent job in rolling out these economic support measures to try to keep the Canadian economy going.

At the same time, our front-line health care workers have been heroes. They fight daily to keep all of us safe. We owe them a great deal of gratitude.

If you are worried because you are facing significant financial challenges and you don’t fully understand the options available to you, including, filing a consumer proposal versus bankruptcy. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore.

The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

Ira Smith Trustee & Receiver Inc. offers a full range of insolvency services to people facing a financial crisis. Whether you need help with a proposal to your creditors to avoid the worst case, financial counselling or advice about insolvency options, our goal is to make sure that you understand the process, your choices, and what steps will get your life back on track.

Call us for your free first consultation. We will inform you about all the choices readily available so you can make a proper decision about the very best plan to deal with your financial obligations.

Call Ira Smith Trustee & Receiver Inc. today. All you have to lose is your debt!

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

We hope that you and your family are safe and healthy. For those that celebrate it, we wish you all a very Merry Christmas. To everyone, we wish you a healthy, happy and secure 2021.

Tags Bankruptcy, canada emergency rent subsidy, Canada Emergency Response Benefit, canada emergency wage subsidy cews, canada recovery benefit fund, ceba, cerb, CERS, cews, Consumer Proposal, coronavirus, covid-19, CRB, I need financial help immediately, i need financial help immediately canada, Ira Smith Trustee, loan guarantee, lockdown support, mortgage payment deferral

Brandon Blog Post

CERB UPDATE: CERB YOUR ENTHUSIASM AS INTENSE CERB CRA AUDITS BEGIN

Post author By Brandon Smith
Post date October 28, 2020

CERB update

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

CERB update introduction

The Canada Emergency Response Benefit (CERB). CERB update: The Canada Revenue Agency (CRA) has started audits to assess payments made under certain of Canada’s COVID-19 Economic Response Plan. After being slowed down by the coronavirus, auditors are now getting back to their complete workload.

This Brandon’s Blog will concentrate on the Government of Canada CERB update.

CERB update: Who can qualify for CERB?

As a refresher, there were eligibility criteria to be eligible for the $2,000 CERB payment by applying to the CRA, you must have met certain conditions during the period you are applying for. The Government of Canada stipulated the eligibility criteria to be:

You did not look for, or get, CERB or Employment Insurance benefits from Service Canada for the exact same qualification period.
You did not stop your work willingly on your own.
You live in Canada and also are at least 15 years old.
You earned a minimum of $5,000 (before taxes) in the preceding 12 months, or in 2019, from 1 or more of:
- employment earnings
- self-employment income
- provincial benefit payments connected to pregnancy or parental leave

1of:
- Your work hrs have actually been minimized because of COVID-19.
- You have actually quit or will certainly quit working as a result of COVID 19.
- You are incapable to work as a result of COVID-19, for example, because you are looking after a person.
- You have actually been paid EI benefits for at the very least one week of benefits since December 29, 2019, and finished your entitlement to such benefits.

One of:.
- If you are applying for the first time: You have actually stopped or will stop working, or you are working minimized hours due to the coronavirus. Also, you don’t expect to earn over $1,000 in gross employment or self-employment revenue for at least 14 days straight during the 4-week duration.
- If you are looking for a subsequent period: You are still not employed or self-employed, or you are doing reduced hours due to COVID-19. You don’t expect to make over $1,000 in gross employment or self-employment revenue, and you anticipate this to continue during the whole 4-week duration.

One CERB update is that the CERB program has now ended. The CRA is continuing to accept and pay retroactive applications until December 2, 2020.

CERB update: What are the CERB pay periods?

You will see in the above CERB update description, it talks about qualifying for different periods. What were the CERB pay periods? The CERB was available from March 15 to September 27, 2020, inclusive.

The Government of Canada paid out $2,000 per four-week duration for approximately 28 weeks, backdated to March 15. CERB payments were paid out in the gross amount. No deductions for income tax, Canada Pension Plan or Employment Insurance were taken off. CERB is taxable income that must be reported on your 2020 income tax return.

As long as you did not make more than $1,000 for any 4-week period applied for, there was not any CERB claw-back.

So for this CERB update, keep 3 things in mind because it will be important from a CRA audit perspective:

You could apply for CERB through either CRA or Service Canada, but not both.
There were certain eligibility requirements regarding anyone who applied having reduced work hours or no work due to the coronavirus.
You were only allowed to earn $1,000 for any CERB pay period. If you earned more, you were not entitled to apply for the CERB for that pay period or receive payment of CERB.

CERB update: What is replacing CERB?

Now that the CERB has ended, the Government of Canada has created some new benefit programs. These new CERB update programs are retroactive from September 27, 2020, to September 25, 2021, inclusive.

Canada Recovery Benefit (CRB)

The CRB will provide qualified workers with $500 weekly (taxable, and this time tax is deducted) for as much as 26 weeks for those who are not working for an employer or independently as a result of COVID-19.

To qualify, you also must not be eligible for Employment Insurance or had employment/self-employment revenue minimized by a minimum of 50% as a result of the coronavirus.

Canada Recovery Caregiving Benefit (CRCB)

The CRCB will supply $500 each week (taxed, tax deducted from the gross weekly amount) for up to 26 weeks per house. It is for workers incapable of working at least 50% of the week since they must look after a youngster under the age of 12 or a member of the family. The allowed for reasons are since schools, day-cares or treatment centres are closed due to COVID-19, or due to the fact that the youngster or member of the family is sick and/or required to quarantine or is at a high threat of serious health ramifications as a result of COVID-19.

Canada Recovery Sickness Benefit (CRSB)

The CRSB will provide $500 weekly (taxable, and this time tax is deducted) for a maximum of 2 weeks, for workers that are not able to work at the very least 50% of the week because:

they acquired COVID-19;
self-isolated for factors associated with COVID-19; or
have hidden problems, are undertaking therapies or have actually gotten various other sicknesses that, in the opinion of a doctor, nurse practitioner, government or public health authority, would make them much more prone to the coronavirus.

Employment Insurance

If you received the CERB by applying to Service Canada after you got your last CERB amount, continue completing records for Service Canada. For the most part, you do not require to make a special application for EI benefits.

Service Canada will automatically examine your data and your Record of Employment. They will review your case and let you know if you qualify for EI.

If you got the CERB by applying to CRA, you are required to first get all your CERB payments before applying for EI benefits. You can apply after the end of your last CERB eligibility period for the CERB update benefits.

CERB update: Can CRA audit CERB?

Definitely. They will be looking for two things. People who made an honest mistake in their application and those who committed out and out fraud.

The CRA isn’t going to fool around with these CERB payments. If you made a mistake on your application and therefore got more money than you should have, the CRA will want those funds back.

The Canadian federal government has spent billions on the CERB program. That’s a lot of money calling for accountability. If you do not think the CRA will audit applications, you may want to rethink just how easy auditing is with the CRA computers.

Taxpayers who inaccurately claimed CERB benefits by mistake may just be required to pay back the incorrectly claimed amount. But here is the CERB update – there will be, if there aren’t already, additional procedures to successfully penalize taxpayers who purposefully claimed COVID-19 subsidies they did not qualify for.

These actions will include penalties and interest and possibly prosecution for the, especially more grievous tax fraudsters. COVID-19 benefits or subsidies have come at a significant cost to the government. They will be keeping an eye out for those attempting to abuse the system.

The very best security against flunking an audit where the CRA chooses you is to have taken simple preventative steps. The simplest way to come out clean from a CERB update audit was to make sure that you qualify before applying for the money!

CERB update: What if you can’t (re) pay?

There are going to be three kinds of people that may very well have trouble paying money to the government. People went on the CERB because of very low, or no, employment earnings. Nobody got rich from the CERB. So people are now flush with cash after having received CERB payments.

The first type is those that made an honest error in their applications. If caught through an audit, they may very well not have the funds to repay.

The second type is those that committed fraud in getting the CERB. Perhaps they never qualified but falsely applied. Or, perhaps on the surface they did qualify, and then while receiving the CERB were able to pick up work and got paid in cash.

The third type will be those people who did everything right and needed all the CERB to put food on the table and make their rent or mortgage payment. Remember that CERB is taxable and was paid at the gross amount. No income tax was deducted at the source. So, next winter or spring, when filling out their 2020 income tax return, they may have a nasty surprise. That nasty CERB update surprise will be income tax payable for which they do not have the cash to make the tax payment they are required to.

So now they will have income tax debt to add to credit card debt or other types of debt. These people will need income tax debt relief. CRA will definitely contact you if you do not pay.

If you find that you will be in need of a debt settlement plan to deal with your debts, including any income tax debt, contact a licensed insolvency trustee (Trustee).

A Trustee will review your situation and make specific recommendations on how you can settle your debts. Our aim is always to help people avoid bankruptcy. We have helped many people who have received bad news from a CRA audit. We can also help anyone with a CERB update problem.

CERB update: Summary

I hope you have enjoyed this CERB update Brandon’s Blog. Hopefully, you have better insight now into the fact that a sick insolvent company’s business can be saved by doing a sale of its assets to a healthy organization.

Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.

That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious in finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation.

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

Tags buying real estate from a receiver, can cra audit cerb, Canada Emergency Response Benefit, Canada Revenue Agency, cerb, cerb update, coronavirus, COVID-19 Economic Response Plan, CRA, debt settlement plan, ei, employment insurance, Ira Smith Trustee, Service Canada, trustee, what are the cerb pay periods, what is replacing cerb, who can qualify for cerb

Brandon Blog Post

INSOLVENCY CANADA: IS IT ILLEGAL FOR INSOLVENT COMPANY TO APPLY FOR THE CEWS

Post author By Brandon Smith
Post date August 31, 2020

If you would prefer to listen to the audio version of this insolvency Canada Brandon’s Blog, please scroll to the bottom and click play on the podcast.

Insolvency Canada introduction

Canadian business restructuring, a type of insolvency Canada, has been in the news lately and no doubt will continue to be for some time. The COVID-19 pandemic, the lockdown and general fear have affected everyone; both Canadian business, employees and all other Canadians. Everyone is forecasting that business insolvencies will rise as a result of the coronavirus.

An interesting question posed to us recently is, is it illegal for an insolvency Canada company to apply for the Canada Emergency Wage Subsidy (CEWS). I have written a couple of blogs specifically on the CEWS previously:

CANADA EMERGENCY WAGE SUBSIDY: HELPING YOUR COVID-19 BUSINESS RECOVERY

THE BEST CEWS EXTENSION NEWS REVIEWED

In this Brandon’s Blog, I discuss the concept of CEWS and try to answer the question about insolvent companies applying for COVID-19 support.

Insolvency Canada CEWS refresher

The CEWS was established for an initial 12-week period from March 15 to June 6, 2020, offering a 75-per-cent wage help to qualified firms. Then on May 15, 2020, PM Justin Trudeau announced a CEWS expansion for 3 additional months to August 29. The CEWS safeguards work by assisting organizations to maintain workers on the payroll as well as also encouraging firms to re-hire staff members previously laid off. To date, 296,030 employers, representing 924,970 applications, have applied to the CEWS program.

Former Finance Minister Bill Morneau then announced in July that the CEWS extension would consist of program changes that would broaden the reach of the program. It would certainly offer much better-targeted assistance to guarantee that more workers can return to their work without delay as the economy reboots.

The modifications announced in July for the CEWS extension would:

Prolong the program up until November 21, 2020, with the intent to provide additional support up until December 19, 2020.

Make the aid available to a more variety of companies to include those with a revenue decline of less than 30%.

Provide a slowly lowering base help to all eligible companies. This would assist various companies with much less than a 30% earnings loss get aid to keep employees.

Present a top-up aid of around an added 25 percent for companies that have really been most adversely affected by the pandemic. This would be particularly practical to firms in markets that are recovering far more slowly.

Offer assurance to firms that have really already made business decisions for July as well as August by ensuring they would not have their benefits less than they would have had under the previous CEWS program.

Address particular issues brought to the government’s attention by various stakeholder groups.

By helping people get back to work and sustaining companies as they try to grow their income, these modifications gave companies some certainty that they needed to recall workers. It is very possible that some employers would fall into an insolvency Canada category.

Insolvency Canada: The current CEWS statistics

The Canadian government has approved 910,940 of the total applications so far. The approved applications by value are:

Under $100K 863,700

$100K to $1M 44,990

$1M to $5M 2,010

Over $5M 240

Total 940,940

To look at is it illegal for an insolvent company to apply for CEWS, we first need to see what the requirements are. Could it be that applications have been made by insolvency Canada employers? For sure it is!

Insolvency Canada: When is an employer eligible for the CEWS

The CEWS was first set up through the passage of BILL C-14, A second Act respecting certain measures in response to COVID-19. It received Royal Assent on April 11, 2020. It establishes the rules for the CEWS program, as amended and extended.

For the purposes of the wage subsidy, an eligible employer is:

a company or a trust, besides a corporation or a trust fund that is excluded from tax obligation under Part I of the Income Tax Act or is a public institution;
an individual aside from a trust;
a registered charity (other than a public institution);
a person that is exempt from tax obligation under Part I of the Income Tax Act (aside from a public institution), that is:
- a farming organization;
- a board of trade or a chamber of commerce;
- a non-profit corporation for SRED activities;
- a labour organization or society;
- a benevolent or fraternal benefit society or order; and
- a non-profit organization;
a partnership where each member of which is an individual or partnership in this listing;
a prescribed company, including certain Indigenous companies or businesses.

As you can see, the list is very exhaustive. The legislation does not exclude an insolvent company or mention anything about insolvency Canada. The legislation also does not exclude a company that has filed for a corporate restructuring being either a proposal under the Bankruptcy and Insolvency Act (Canada) (BIA) or under the Companies’ Creditors Arrangement Act (Canada) (CCAA).

Insolvency Canada: How does an eligible employer qualify for the wage subsidy?

In order to get the wage subsidy in respect of a specific claim period, an eligible company needed to have on March 15, 2020, an open payroll program account with the CRA and was using that account to make its payroll remittances.

Concerning the revenue test, a company’s income for the subsidy includes its revenue earned in Canada on an arm’s length basis, calculated utilizing the employer’s regular bookkeeping approach. Companies can pick to calculate their earnings using either a cash basis or the accrual technique of bookkeeping. Companies have to make use of the method they select when they first make an application for the CEWS for the duration of the program. Employers cannot combine the methods.

When a qualified employer has computed its qualifying revenue for each and every relevant claim period, it would determine if it has actually experienced the needed reduction in income to qualify for the wage subsidy for that claim period. However, the company is under no obligation to prove that the decrease in income is connected to the COVID-19 situation. If it does not qualify for one claim period, it is not barred from determining if it qualifies for any other claim period.

There is nothing in the legislation that disqualifies an insolvent company that is an eligible employer from calculating if it meets the test for eligibility for the CEWS. The phrase “insolvency Canada” does not appear anywhere.

Insolvency Canada: It is not illegal for an insolvent company to apply for the CEWS

From my research, as described above, I have not found anything in the legislation that established the CEWS that would make it illegal for an insolvency Canada employer to apply for the CEWS. If you think about it, this makes sense.

The Canadian government was worried that companies shutting down meant all workers were laid off and be applying for the Canada Emergency Response Benefit (CERB). As the economy opened up again, the government wanted to make it easier for businesses to bring back some or all of their workers in a very unsettling and uncharted time. The aim of all the Canadian government support programs is to give assistance to struggling companies.

There is an implicit assumption that companies could very well be insolvent and would therefore not be able to reopen unless they had financial support. So not only is it not illegal for an insolvent company to apply for the CEWS, it is quite logical that an insolvent company would not reopen or if it did, not hire back many workers.

This is, in my view, one of the reasons why the CEWS was established; to bring back Canadian workers to companies that could not otherwise afford to pay its employees if it could not receive back a refund for what it was spending on wages or salaries.

Insolvency Canada: How would the CEWS be treated under a formal restructuring

Whether the company is restructuring under the BIA or CCAA, the treatment of the CEWS is the same. The CEWS is taxable. You need to include the amount you get on the company’s or business’s income tax return when calculating your taxed revenue.

You will certainly likewise be expected to report the amount of the CEWS that was used to pay each of your staff members’ incomes by utilizing a unique code in the “other information” area at the end of the respective employee’s T4 slip. That specific information on the reporting needs has not yet been made public by the government. It presumably will be before the end of the year.

So in either a BIA or CCAA insolvency business restructuring, the CEWS should be shown as:

revenue in any cash flow statement prepared with anticipated receipt dates;
income for accounting and financial statement purposes; and
disclosed in the Trustee’s/Monitor’s reporting to stakeholders.

If it turns out that the employer involved in a formal restructuring did not qualify for a CEWS payment for one or more of the periods that it applied and received one, then it is a liability to the government. How is that handled in the restructuring? There could be two answers. From my research, I do not see this specifically being addressed.

You may need to return all or part of the CEWS you have actually already received if you:

send to the Canada Revenue Agency (CRA) any type of modifications to a previous application;
terminate an application;
made a calculation or data mistake for a claim;
learn you do not qualify after getting a subsidy payment for a claim made; or
receive a notice from the CRA that, following an evaluation, your claim has actually been lowered or disallowed.

Any type of CEWS overpayment you received that is not returned will be subject to interest charges. In the very next insolvency Canada section, I discuss what kind of liability a CEWS overpayment would be in a formal insolvency restructuring.

Insolvency Canada: What kind of liability is a CEWS overpayment

The CEWS is a subsidy payment made to you by CRA based on an application the insolvent company makes. Unlike a claim for unremitted source deductions or HST, it is not an amount the insolvent company collected, held in trust for and failed to remit to CRA. So as far as I am concerned, it is not a trust claim. It would be an ordinary unsecured claim.

The overpayment claim may not necessarily be caught in the restructuring. If the insolvent company applied for the CEWS AND received the subsidy payment BEFORE making the restructuring filing under either the BIA or CCAA, then I believe it would be an ordinary unsecured claim in the restructuring. However, if the company applied for the CEWS AFTER filing for restructuring, regardless of the claim period, the overpayment claim would be a post-filing claim and not caught in the restructuring. All of the overpayment would have to be repaid notwithstanding the formal restructuring.

If not repaid, presumably CRA would offset any other amount payable to the company, such as for HST input tax credits, against the CEWS overpayment liability in such an insolvency Canada situation.

Again, I caution that none of this appears in the CEWS legislation. It is my opinion based on my experience and the review of the relevant legislation.

Insolvency Canada summary

I hope you have found this Insolvency Canada CEWS Brandon’s Blog interesting and helpful. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

If anyone needs our assistance for debt relief Canada COVID-19, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Tags Bankruptcy and Insolvency Act, Canada Emergency Response Benefit, canada emergency wage subsidy cews, CCAA, cerb, cews, cews extension, Companies’ Creditors Arrangement Act, coronavirus, coronavirus pandemic, corporate restructuring, covid-19, covid-19 pandemic, current cews statistics, formal restructuring, how does an eligible employer qualify for the wage subsidy, insolvency canada, Ira Smith Trustee, when is an employer eligible for the cews

Brandon Blog Post

FINANCIAL LITERACY IN CANADA: EXCEPTIONAL MONEY MANAGEMENT SKILLS ARE CRUCIAL

Post author By Brandon Smith
Post date August 17, 2020

The Ira Smith Team is totally operational and both Ira and Brandon Smith are here for a telephone consultation, conference calls, and virtual meetings.

Keep healthy and safe everybody.

If you would prefer to listen to the audio version of this Brandon’s Blog, please scroll to the very bottom and click on the podcast.

**What is financial literacy in Canada**

Financial literacy in Canada is having the skills and expertise to make informed decisions concerning managing your money. Recognizing basic financial ideas allows people to understand just how to navigate the financial system. People with financial literacy skills make better monetary decisions and handle cash much better than those without these skills.

We remain in uncharted waters currently in Canada. The COVID-19 pandemic has actually called for the Canadian government to give economic support programs to both individuals as well as businesses. Canadians’ 2019 personal income tax obligation payment due date has been extended and is due September 30, 2020. The Canada Emergency Response Benefit (CERB) payments are ending soon. The Canada Emergency Wage Subsidy (CEWS) will end in December 2020.

Where will Canadians end up when government subsidies end? LendingArch has reported that there has been a 1000 percent increase in demand for debt relief and loan refinancing among Canadians. So I thought it would be an opportune time to discuss the state of financial literacy in Canada.

**Why is financial literacy in Canada important?**

Financial literacy in Canada requires to begin with student education. It will aid students to:

Thoroughly consider their money options. This can relate to daily decisions, like acquiring groceries to bigger investments, like spending for tuition or getting a vehicle.
Understand fundamental money management.
Create their very own point of view on financial issues, such as rates of interest, home mortgage guidelines, or the Canadian or worldwide economy.

Financial literacy in Canada and money management go hand in hand

Establishing excellent finance practices like budgeting at an early stage in life is essential to financial wellness in the long term. Without fundamental financial literacy abilities, individuals are a lot more quickly tempted right into financial debts: utilizing credit cards, extending lines of credit, and also taking out high-interest predatory loans, without totally comprehending the ramifications of paying back those financial debts.

Many individuals have a difficult time talking about money at home too. The research I talk about below shows that typically, Canadians’ financial literacy in Canada is above average. Nonetheless, at the very least one study reveals Canadian moms and dads prefer to speak to their youngsters regarding sex than money matters. Not comprehending the fundamentals of finance could send their children into a financial freefall. The topic of this blog is not sufficiently wide to talk about the ramifications of children not understanding the concepts of responsible and safe sex!

Perhaps it comes down to financial preparedness and confidence.

**How is financial literacy in Canada assessed?**

The Programme for International Student Assessment (PISA) is an international survey that intends to assess education systems around the world by evaluating the abilities and also understanding of 15-year-old pupils in topics like science, math, reading, joint problem resolving, and financial literacy.

In the 2015 PISA survey, Canada took part in it for the very first time. PISA does not measure academic success in relation to each institution’s curricula. It does examine pupils’ capacity to apply understanding and abilities as well as to examine, reason, and also connect effectively as they examine, assess, and resolve problems. The results supply a crucial standard step for financial literacy in Canada.

The Council of Ministers of Education, Canada (CMEC) reported that in 2015, Canadian 15-year-old students attained an above-average score. Amongst the 15 countries and economies that joined the 2015 PISA financial literacy study, only one, China, outmatched Canada.

A different 2015 research revealed that overall Canadians stack up well on financial literacy contrasted to their peers in other places of the world. For example, the 2015 Organisation for Economic Co-operation and Development (OECD) Survey on Measuring Financial Literacy and Financial Inclusion measured respondents’ financial knowledge, attitudes, and behaviours. It ranked Canadians’ overall financial literacy third out of 29 countries.

The results were that only 61% of Canadians could correctly answer five of seven financial knowledge questions. That is what gave Canadians’ overall the financial literacy standing of 3rd place.

So it appears based on these 2015 studies, that Canadian youth on average as a group score better than Canadians as a whole, although overall financial literacy in Canada is above average. Presumably, it is the Canadian school system teaching financial literacy that might account for the overall better performance of 15-year-old Canadians versus a mixed age group.

**How is financial literacy in Canada taught in Ontario schools?**

The Ontario government has recently overhauled its financial literacy education and learning program. Pupils in grades 4-12 learn about financial literacy so they can comprehend just how to make enlightened financial choices.

Financial literacy belongs to the elementary and secondary schools’ educational programs in many different subjects such as mathematics, social studies, Canadian and world studies and also business studies. In some subjects, pupils may be learning details of and abilities for understanding money and money management, consumer education, savings and budgeting. This will certainly help them create financial literacy in Canada abilities. In various other subjects, financial literacy connections may be made as pupils learn more about their place in the world, as a responsible and caring person or when they examine different economic systems.

**What resources are available to teachers for classroom use to teach financial literacy in Canada?**

Via the educational program, pupils are creating abilities in critical reasoning, decision-making as well as solving problems that can be applied for both education and also to real-life circumstances. Resources have been created for teachers to help them connect financial literacy topics across the curriculum to grow the students’ discovering and making financial literacy in Canada much more meaningful to them.

Teacher videos, guides and lesson plans are developed to supply financial literacy teaching are developed to assist.

**What resources are available for teachers to help parents support their children’s financial literacy in Canada?**

Moms and dads have an essential duty to play in supporting their children to create the skills, knowledge, and behaviours to navigate today’s significantly complicated economic world. Parent resources have been established to highlight the Ministry of Education’s financial literacy in Canada methodology and to direct parents in engaging their youngsters in financial literacy matters. These sources can be made use of to support discussions at parent-teacher evenings, student fairs, and various other parent-child learning situations.

The Financial Consumer Agency of Canada has actually developed an outline based on best practices in assessment methodology and what it has discovered in assessing its very own financial literacy sources and program. The provincial Ministries of Education have developed their very own programs as mentioned above with this guidance.

Even though on average Canadians score above average in a financial literacy test, Canadians still don’t feel confident they know everything they can about financial planning.

Huffington Post Canada reported that over half of Canadians are only $200 away from insolvency, and 31 percent don’t make enough to cover their bills, according to a recent poll of 1,500 Canadians.

Alison Carson, Oakville, Ont. high school teacher wished she found out the most effective method to invest her money. As a teacher, a large part of her paycheque goes into her pension plan. She says she relies upon her employer to invest her money in such a way that will offer her the very best retirement possible. However, she doesn’t know enough regarding exactly how it all works to keep track of it.

“I just trusted that if there was a problem … that someone more financially literate than me would’ve figured that out, and there would be some article written about it, and I would read the article,” she said.

**Ontario Securities Commission Investor Education Fund (IEF) supports financial literacy in Canada**

Started by the Ontario Securities Commission, the IEF site offers individual finance advice for consumers in various life situations as well as resources for instructors and students. It supplies an excellent introduction of the major types of investments – stocks, bonds, mutual funds, RRSPs – as well as uses a range of calculators, worksheets and tests.

This website, which combines the instructional resources of all 12 U.S. Federal Reserve Banks and the Board of Governors of the Federal Reserve, offers public and class resources on business economics, personal finance, banking, and money management. It also offers interactive tools and games for grades K to 12; as well as web links to various other sites of financial education and learning (within and outside the U.S. Federal Reserve system).

This is their contribution to financial literacy in Canada.

Financial literacy in Canada summary

I hope you enjoyed this financial literacy in Canada Brandon’s Blog. November is Financial Literacy Month in Canada. Throughout November, organizations and individuals from across the country are encouraged to host and participate in events and share resources aimed at helping Canadians learn how to manage their personal finances successfully. But we don’t have to wait until then to begin learning.

The Ira Smith Team family hopes you and your family are staying safe, healthy and well-balanced. Our hearts go out to every person who has been affected either through inconvenience or personal family tragedy.

We are all citizens of Canada and we have to coordinate our efforts to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Family members are literally separated from each other. We look forward to the time when things can return to something close to normal and we can all be together again physically.

Ira Smith Trustee & Receiver Inc. has always employed clean and safe habits in our professional practice and continues to do so.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses. Should you take advantage of the CEBA? I say a resounding YES!. I just wanted to highlight all of the issues that you should consider.

If you need financial help right now, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

Are you now worried just how you or your business are going to survive? Those concerns are obviously on your mind. This pandemic situation has made everyone scared.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

The Ira Smith Team is totally operational and both Ira and Brandon Smith are here for a telephone consultation, conference calls and virtual meetings.

Keep healthy and safe everybody.

Tags budgeting, Canada Emergency Response Benefit, canada emergency wage subsidy cews, Financial Consumer Agency of Canada, financial literacy, financial literacy in canada, financial wellness, how is financial literacy taught in ontario schools, How is financial literacy assessed, i need financial help right now, Ira Smith Trustee, money, money management, What is financial literacy, What resources are available for teachers to help parents support their children's financial literacy, What resources are available to teachers for classroom use to teach financial literacy, why is financial literacy important

Brandon Blog Post

CANADIAN BUSINESS: WHAT WILL BE THE ULTIMATE BUSINESS IN ONTARIO RECOVERY PROGRAM?

Post author By Brandon Smith
Post date July 8, 2020

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Canadian business introduction

In April 2020, a survey of entrepreneurs who own what could be called a small Canadian business across the GTA was conducted. It found that almost two-thirds of them might have to shut down for good as they struggle to stay on top of rent and other bills throughout the COVID-19 pandemic.

In this Brandon’s Blog, I look at entrepreneurs in Canadian business, both small and large, and talk about the one essential ingredient that will determine Canadian business success or failure. This one necessary item may turn out to be the only Canadian business recovery program that will ultimately work.

Canadian business opening-up again

Many are progressively opening up under local, provincial and federal government guidance. They need to navigate a host of constraints, including restrictions on the number of customers at any one time. I have read that many say the restrictions with their added layer of costs may stop them from being profitable. Even though COVID-19 cases appear to be under control in Ontario, companies have actually reopened to dramatically smaller sized groups, imperilling their survival.

To save local Canadian businesses, and the millions they employ, the federal government developed Canada’s COVID-19 Economic Response Plan. The federal assistance programs for Canadian business include:

Canada Emergency Wage Subsidy (CEWS )
Temporary 10% Wage Subsidy
More time to pay income taxes
Canada Emergency Business Account interest-free loans
Loan Guarantee for Small and Medium-Sized Enterprises
Canada Emergency Response Benefit (CERB) for the self-employed business people and Canadian workers.
Canada Emergency Commercial Rent Assistance (CECRA)

I have already written about most of these support programs. I have attached relevant links above so that you can read up on the various support programs for Canadian business.

Provincial governments have also stepped up. For example, in Ontario, the Doug Ford Conservative government has implemented:

Interest/penalty relief – Canadian business in Ontario will get five months of interest and fine relief to make payments for taxes administered by the Province. From April 1, 2020 – August 31, 2020, Ontario will not apply any penalty interest on any late-filed returns or incomplete or late tax obligation payments under the Employer Health Tax, Tobacco Tax and Gas Tax obligations. This enhances relief from the federal government on interest and other charges from not remitting the amount owing for corporate income tax.
WSIB payment deferments – Employers can delay WSIB payments for 6 months.
Rent support for local Canadian business – Ontario has partnered with the Government of Canada on the Ontario-Canada emergency commercial rent assistance for small businesses and landlords experiencing financial problems throughout the COVID-19 pandemic.

But there are still Canadian business problems

Despite all these support programs, the Canadian business world still has to figure out how to pay the balance of their rent, utility, insurance as well as a host of various other recurring expenses. While some have had the ability to delay these expenses, they can’t do so for life. Companies will become required to take care of their unmet commitments. They will also have to figure out how they are going to go back to paying all their expenses in full once the support programs end and business has not yet come back to the pre-coronavirus pandemic level.

Some companies may have enough cash savings to ride out the pandemic or can access fresh cash resources from owners. That is both good and bad. Entrepreneurs will take from their retirement savings, and in some cases deplete them, in the hopes of keeping their business alive long enough to survive and once again be profitable. It is highly doubtful that Canadian business will be able to borrow from the Banks as a source of fresh capital under these circumstances.

For a lot of others, the crush of past-due costs will certainly limit and maybe even end their business.

What happens when the government support programs end?

That is a big question that I get asked always. The answer is somewhat obvious: Everyone will have to stand on their own two feet just like they had to before the COVID-19 pandemic. Right now all the Canadian business support programs are all scheduled to end August 31. What will happen then?

My personal belief is that the federal and provincial governments will not be able to end the economic response support programs that soon. Rather, I think they will have to extend all the programs again. They may tweak them to begin the process of weaning Canadian business off of government support. Nevertheless, I feel they will have to be extended.

I think the extension will come with stark warnings. I believe the government would not want to extend for more than 90 days, but Christmas will still come in December. Pandemic or no pandemic. Nobody will want to shut off the tap before Christmas. So, that means an extension until the end of the calendar year 2020. With it, the governments will have to warn everyone to get their houses in order now because for certain there will be no more support programs after December 31.

I don’t have any inside information. I am just guessing. But to me, that seems the most realistic to still help Canadian business because entrepreneurs and workers are still all scared. At the same time, the governments’ exit strategy time clock begins ticking. Everyone will have a fair warning.

There is one precious commodity Canadian business will need when the support programs stop

Please humour me. Let us just say you find my prediction to be a reasonable one. On January 1, 2021, Canadian business is not all of a sudden flush with cash. They have survived. Entrepreneurs will still be scared. They certainly will not hire everyone back with an uncertain economic climate. All of the creditors of the businesses will start demanding payment in full. They have been patient and understanding. But now, all business debts will be demanded.

What is the one commodity Canadian business will desperately need? Cash is an obvious one but, no more is coming. Not from the government, the Banks or investors. Entrepreneurs are already tapped out having used personal savings to keep their businesses afloat. The most precious commodity Canadian business will need is TIME. Time to gear up again. Time to get back on their feet and bring in some cash. The Courts will have reopened. Creditors will begin to sue. There will be no more “time-outs” built into our Canadian economic system.

How will businesses get the time they need?

Bankruptcy protection will very likely be the answer

Breathing time that briefly ices up the need to pay off old debt while letting Canadian business function and have the time to find a strategy to keep going. In most cases, that will only be able to happen with a bankruptcy protection insolvency filing.

While bankruptcy is only thought of with going out of business, there are two Canadian federal statutes that allow viable businesses to develop a restructuring plan to lead them back to success. The trouble is that bankruptcy laws don’t give sufficient time to do this while there is still a pandemic. Ongoing COVID-19 health problems will likely suppress the Canadian economy in 2021.

Some out-of-the-box thinking and creativity are going to have to go into bankruptcy restructuring. It will be incumbent on licensed insolvency trustees (formerly called bankruptcy trustees), insolvency lawyers and the courts to recognize viable businesses that deserve to survive. This will be the case even if the processes being recommended are a bit unorthodox. These times are unorthodox and the solutions will have to fit the realities of our time.

I have previously written many blogs on how the two Canadian insolvency statutes can be used to allow Canadian business to restructure. The two statutes are:

Bankruptcy and Insolvency Act (BIA)

Companies’ Creditors Arrangement Act (CCAA)

For the purpose of this blog, I won’t repeat what I have previously written about corporate restructuring under either the BIA or CCAA. For this blog, what you need to know is that CCAA proceedings are for companies with $5 million or more of debt. BIA proceedings are for those companies with $4,999,999 of debt or less. Both statutes allow for bankruptcy protection filing. They are the Canadian equivalent to Chapter 11 bankruptcy protection in the United States.

How will bankruptcy protections help Canadian business?

For numerous companies battling the consequences of COVID-19, the main issue will not be a massive backlog of debt. It will be the inability to pay off the debt fast due to an absence of immediate profits. Cash will be needed to carry on business and make commitments on a go-forward basis. Given enough time, Canadian business will be able to repay its debts which accrued during the coronavirus shutdown. Unfortunately, the time Canadian business will need will be much longer than how much longer creditors will be willing to wait.

This is where bankruptcy protection filing, under either the BIA or CCAA comes in. First, under a bankruptcy protection filing, there is an automatic stay of proceedings. Creditors will not be able to start or continue collection efforts. This includes repossession by secured creditors or beginning or continuing legal proceedings.

Other benefits of a bankruptcy protection filing for Canadian business will be:

Buying some time to come up with a restructuring plan to keep viable businesses in operation.
Saving jobs through restructuring rather than liquidating the assets of many companies.
Allowing for the sale of entire business units to be integrated into other healthier companies in order for businesses to survive, albeit in a different legal format.
To allow for the sale of redundant assets to raise much-needed cash.
Get out of onerous equipment, IP or premises leases/contracts that need to be jettisoned or else a restructuring is not possible.
Stopping secured lenders from calling a default on loan facilities due to either cash or non-cash impairment charges leading to going concern worries.
Obtain operating capital by way of a new debtor-in-possession loan credit facility for restructuring. Most companies outside of a formal restructuring will be unable to borrow any more money as I have already mentioned. However, in a BIA or CCAA Canadian business restructuring, the court can approve emergency funding and raise that operating loan to the top of the pile by giving it a priority secured loan position.
Stopping Canada Revenue Agency (CRA) from starting or continuing garnishee tactics, general collection efforts and especially placing liens on business property for unpaid taxes.
To allow companies to restructure their debt and clean up their balance sheets in a post lockdown economy.

The biggest resource Canadian business will need is also going to be its largest enemy

So as you can see, I believe that the most important resource that Canadian business will need to survive will not be cash. It will be time. Creditors will no longer want to give businesses more time to repay. Companies will need more time to get back on their feet when the COVID-19 Economic Response Plan support programs end.

The only way I can see that truly happening while allowing for proper restructuring of viable businesses will be under bankruptcy protection filings. Those businesses that are not viable, by definition, will fall by the wayside causing more harm to many good people.

So this why I say formal bankruptcy protection proceedings to allow viable businesses to restructure will be the ultimate business recovery program in a post-lockdown Canada.

Canadian business summary

I hope you have found this Canadian business Brandon’s Blog interesting and helpful. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Brandon Blog Post

CANADA STUDENT LOAN: GET STUDIOUS ON CANADA STUDENT LOANS SUSPENDED

Post author By Brandon Smith
Post date May 4, 2020

The Ira Smith Team is absolutely operational and both Ira, as well as Brandon Smith, are right here for a telephone appointment, conference calls and also virtual meetings.

Stay healthy and safe everybody.

If you would rather listen to the audio version of this Brandon’s Blog, please scroll down to the bottom and click on the podcast

Introduction

For plenty of students, the month of May generally marks the beginning of a summertime job. But now, due to the COVID-19 pandemic, it might be actually challenging for them to get any kind of work. They could have already been trying for weeks to find a job without any success. The purpose of this Brandon’s Blog is to describe what the Canadian government is doing to help students in general, and especially those with a Canada student loan.

“Banks were once places to hold money and were very careful in lending to finance families as they built a future – bought homes, bought cars, took out student loans.” – Elizabeth Warren

Government of Canada student loan program announcement

Prime Minister Justin Trudeau revealed comprehensive assistance of close to $9 billion for post-secondary students and also recent graduates. The plan was developed to give assistance to students for the financial backing they need this summer, help them proceed with their research studies in the fall, and help them get the experience they require to start their jobs.

These measures consist of:

the Canada Emergency Student Benefit, which gives assistance to students as well as new graduates that are not eligible for the Canada Emergency Response Benefit. This benefit gives $1,250 monthly for qualified students or $1,750 each month for qualified students with dependents or disabilities. The benefit would be offered from May to August 2020.
the new Canada Student Service Grant, which will help students gain useful job experience and also skills while they help their communities throughout the COVID‑19 pandemic. For students that pick to do serve their community, this new program will offer as much as $5,000 for their 2020-21 education.

On March 30, 2020, the Government of Canada also announced a six-month interest-free moratorium on the repayment of any Canada student loan for all people that are in the process of paying off their student debt. To reassure the student loan borrowers, the government went on to say that all pre-authorized debits taking payments automatically out of people’s accounts will stop.

This will certainly provide interest and payment relief to virtually 1 million Canada student loan borrowers. This delaying payment date of September 1, 2020 ties into the same moratorium given on other types of payments for both Canadian business and individual taxpayers.

“I think my mom and dad both wanted to get across to me that… I obviously grew up with great privilege and was very lucky and was able to afford college and not have student loans, and they would pay for college, but beyond that, it would be up to me to make a living.” – Anderson Cooper

Summer jobs for 2020

The federal government is developing 76,000 work for students in addition to the Canada Summer Jobs program. These placements will be in industries that need an additional hand today or that are on the cutting edge of this pandemic.

“I am just one of the overwhelming majority of Americans who is responsible and hard-working and at one point in their life benefited greatly from government programs such as student loans, Medicare, and Social Security.” – Tammy Duckworth

Fall 2020 to 2021 assistance for post-secondary students

Adjustments to the Canada student loan program have also been done so students facing financial difficulties from COVID-19 can access and manage post-secondary education. Pending federal government authorization, the new measures will come into force on August 1, 2020, for students for a one year period. The Canada Student Service Grant will help those who would rather volunteer and serve their neighbours and country during this health crisis.

These changes include:

Doubling of the student grants for all eligible full-time students to up to $6,000 and for part-time students up to $3,600 in 2020-21. The Canada student grants for students with long-term disabilities and students with dependents will also be doubled.
Widen eligibility for student financial assistance by getting rid of the expected student’s and spouse’s payments in 2020-21, given there will be struggles saving for university for next year.
Boost the program by raising the maximum amount that can be provided weekly to a student in 2020-21 from $210 to $350.
Extra support for First Nations, Inuit, and Métis students going after post-secondary education by giving an additional $75.2 million in 2020-21.
Extend ending government graduate research scholarships and postdoctoral fellowships, and supplement existing federal research study funding, to support students and postdoctoral fellows, by supplying $291.6 million to the government approval councils. Furthermore, the government wants to boost work opportunities for graduate students and postdoctoral fellows via the National Research Council of Canada.

“I would get my student loans, get money, register and never really go. It was a system I thought would somehow pan out.” – Ray Romano

Summary

The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses.

If anyone needs our assistance, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

Are you now worried just how you or your business are going to survive? Those concerns are obviously on your mind. This pandemic situation has made everyone scared.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

“Bankruptcy laws allow companies to smoothly reorganize, but not college graduates burdened by student loans.” – Robert Reich

The Ira Smith Team is absolutely operational and both Ira, as well as Brandon Smith, are right here for a telephone appointment, conference calls and also virtual meetings.

Stay healthy and safe everybody.

Tags Canada Emergency Response Benefit, canada emergency student benefit, canada student loan, canada student loans, canada student loans suspended, canada student service grant, covid-19, Government of Canada, Ira Smith Trustee, justin trudeau, pandemic, student financial assistance, student loan, university

Brandon Blog Post

CANADA EMERGENCY RESPONSE BENEFIT: THE COVID-19 WORKERS BENEFIT

Post author By Brandon Smith
Post date April 1, 2020

The Ira Smith Team is fully operational and both Ira and Brandon Smith are available for telephone consultations, conference calls, and virtual meetings. Stay healthy everyone.

Canada Emergency Response Benefit introduction

Last week I wrote COVID 19 RESOURCES CHECKLIST FOR CANADIANS UNABLE TO WORK. In that Brandon’s Blog, I described the Government of Canada’s proposed help for Canadians needing financial backing to employed and self-employed people who have been impacted by the COVID-19 pandemic. I wrote the blog late on a Wednesday night. That was the night Parliament had an emergency sitting to create the legislation. The information I provided was based on the Government’s own website. When I woke up in the morning, the name of the legislation changed to the Canada Emergency Response Benefit.

So the purpose of this blog is to describe the proposed support and how this COVID 19 resources package magically appeared.

**Back to the future leads us to the Canada Emergency Response Benefit CERB**

When I went to bed on March 25, the Government had stated that it was going to get legislation passed to provide support to Canadians. The opposition parties indicated that they would cooperate to pass such legislation. Mixed in with the proposed wording, were wide-sweeping powers for Finance Minister Bill Morneau. If that was passed, it would have given him unprecedented spending powers not requiring Parliamentary approval. Needless to say, no Finance Minister in Canada’s history ever had such powers.

The opposition parties claimed that they were never told that would be part of the package. Especially as it had nothing to do with getting money into the people’s hands. So, they opposed that aspect of the proposed legislation. Discussions and negotiations went on all night.

The Liberal government of Prime Minister Justin Trudeau initially told everyone that they wanted to help Canadians by creating the:

Emergency Care Benefit
Emergency Support Benefit
EI Sickness Benefits modifications

The purpose of each “E”

The stated purpose of each “E” was as follows:

Emergency Care Benefit – Prime Minister Trudeau specified that the Emergency Care Benefit (ECB) is for those employees, who do not get Employment Insurance (EI) and do not have accessibility to paid sick leave. The brand-new ECB was to include assistance for both traditional employees and the self-employed. In the self-employed category, freelancers, professionals, consultants, part-time workers and also gig economy workers would be included. They would be given earnings protection if they are in self-isolation or in quarantine or looking after a relative in that scenario.

The ECB would provide up to $900 bi-weekly for Canadian workers that meet the criteria. The regular 1 week EI waiting time would also be forgoed.

Emergency Support Benefit – A new Emergency Support Benefit (ESB) was to be created for workers that lose their jobs and do not qualify for EI. This was mainly for the self-employed. The requirements to qualify for the ESB were not available when the Liberals wanted to pass the legislation. They obviously were scrambling. This is not a criticism, it was just the reality.

The ESB strategy was to provide 14 weeks of support as a revenue replacement device. The ESB, part of the overall COVID-19 resources plan was also being presented for those that cannot immediately apply for EI because they had coronavirus and were either self-quarantined or in hospital.

EI Sickness Benefits modifications – The Federal government had stated they would be proposing the following amendments to EI sickness benefits:

The one-week waiting duration for EI sickness benefits will be waived for new applicants who are quarantined so they can get the benefit for that first week of their insurance claim.
There will be a top priority for processing EI applications for Canadians under quarantine.
People getting EI sickness benefits as a result of quarantine will not have to show a medical certificate to be approved.

These proposed amendments would apply for those who have coronavirus or have entered into self-isolation, or for those that are looking after those in self-quarantine. The brand-new support, now called the Canada Emergency Response Benefit, was to help those Canadians who would otherwise not be approved for EI.

The Canada Emergency Response Benefit

When I woke up, I discovered that all the names had changed. Prime Minister Justin Trudeau announced the new Canada Emergency Response Benefit or CERB, was for those people losing income as a result of COVID-19. He claimed the aid will be in individuals’ pockets within 10 days of their applications. He said that the Canada Emergency Response Benefit will supply as a taxable benefit, $2,000 per month for those whose work has actually been affected or lost due to the COVID-19 pandemic. If you are still working, but not receiving your salary or wages due to this crisis, the Canada Emergency Response Benefit is there for you too.

He also stated that the Canada Emergency Response Benefit can be applied for through a secure government website beginning in very early April. The Federal government has yet to clear up whether the brand-new Canada Emergency Response Benefit can be accessed by people without immigration status or with perilous immigration standing.

The intent of the CERB is to encompass the proposed ECB, ESB, and the modifications for EI Sickness Benefits right into a single Canada Emergency Response Benefit program for those impacted by the coronavirus pandemic.

The Canada Emergency Response Benefit will be readily available to Canadians that:

reside in Canada, who are at least 15 years old;
have stopped working as a result of COVID-19 or are qualified for EI regular or sickness benefits;
had an income of at least $5,000 in 2019 or in the 12 months before the day of their application; and
that are or expect to be without employment or self-employment revenue for a minimum of 14 consecutive days in the first four-week duration.

The government website says that applications can begin on April 6.

canada emergency response benefit

Support to Businesses – the Canada Emergency Wage Subsidy

You have no doubt heard press reports and Prime Minister Trudeau, Finance Minister Bill Morneau, and other government officials talking about the wage subsidy program for support to Canadian businesses. Originally, they were talking about a 10% subsidy. To obtain the subsidy, businesses would be allowed to take a credit against the amount of income tax deducted from employees and remit the balance in the normal course.

That program changed quickly too. The government announced that rather than a 10% wage subsidy, it would increase to a 75% payroll allowance. Late last week, Prime Minister Trudeau said details would be released very soon. As recently as in his 11 AM press conference on Wednesday of this week, the PM said that Bill Morneau would hold a press conference later that same day to announce how the program will work.

As of this moment, all the government website says is:

“Providing small business with wage subsidies

We announced an up to 75 percent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll.

More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month.”

Our Finance Minister is now scrambling trying to figure out how it is all going to work. Although we are taxed heavily in Canada, there is not enough income tax deducted from each paycheque to cover a 75% subsidy!

Right now what is being floated is that the program is for businesses that can show that business revenue has decreased by at least 30%. This maximum benefit is up to $847 per week. The program will be in place for the 12-week period beginning March 15. Businesses will need to show the decline from the same months in 2019.

My current understanding is that the program is available for any Canadian business that can show that they have a 30 percent decline in revenue to be eligible for the federal government’s 75 percent wage support. There is also being proposed a 6 week wait time.

I must caution that this is just my understanding. It is only a proposal. The Liberal government did not include this kind of wage subsidy language in last week’s legislation that passed. They now have to recall Parliament in order to get this legislation passed. No doubt things will change before this is put into legislation.

That condition could be a killer for many companies and businesses. It does not take into account seasonality changes, 1-year-old startups or just differences in revenue patterns this year from the previous one. As soon as the government releases details of the program, I will write Brandon’s Blog about it.

“There’s no harm in hoping for the best as long as you’re prepared for the worst.”
Different Seasons, Stephen King

Canada Emergency Response Benefit summary

I hope you have found this Canada Emergency Response Benefit Brandon’s Blog informative and useful. The Ira Smith Team family hopes you and your family are staying safe, healthy and well-balanced. Our hearts go out to every person who has been affected either through inconvenience or personal family tragedy.

We are all part of our community and we have to all cooperate to help stop the spread of this infection. Social distancing and self-quarantining are sacrifices that are not optional. Families are physically separated from one another. I hope this information is helpful to you.

Ira Smith Trustee & Receiver Inc. has always employed clean and safe habits in our professional practice and continues to do so.

If anyone needs our assistance and is unable to go out, either through self-quarantine measures or just general precautions, rest assured that Ira or Brandon can still help you. Telephone consultations and/or virtual meetings are available for anyone wanting to discuss their personal or corporate situation.

Are you now worried about how you are going to survive? Are you worried about how long your company will be able to pay employees who are not working and meet all of its other obligations? Those worries are normal.

The Ira Smith Team understands these fears. More notably, we know the requirements of the business owner or the person who has too much individual debt. Because you are dealing with these stressful financial issues, you are anxious.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

“Man can live about forty days without food, about three days without water, about eight minutes without air…but only for one second without hope.”
Hal Lindsey

The Ira Smith Team is totally operational and both Ira and Brandon Smith are here for a telephone consultation, conference calls and virtual meetings.

Keep healthy and safe everybody.

Tags bill morneau, Canada Emergency Response Benefit, canada emergency wage subsidy, coronavirus, covid 19 resources, covid-19, ei sickness benefit, Emergency Care Benefit, Emergency Support Benefit, Finance Minister Bill Morneau, Ira Smith Trustee, justin trudeau, Justin Trudeau (Politician), pandemic, support to businesses, wage subsidy

Is CERB taxable? CERB is a taxable payment

Is CERB taxable? What is the CERB?

The CERB emergency benefit: Our federal government started to attack the self-employed

Is CERB taxable? Report T4E amounts on your tax return

Maximize your tax planning for CERB before our debt-ridden government comes looking for more

Is CERB taxable? When do I have to pay CERB taxes?

Is CERB taxable summary

I need financial help immediately Canada introduction

I need financial help immediately Canada: A review of 2020 emergency benefits for individuals

Canada Emergency Response Benefit (CERB)

CERB and the self-employed

Employment insurance program

Canada Recovery Sickness Benefit (CRSB)

Canada Recovery Caregiving Benefit (CRCB)

Mortgage payment deferral

I need financial help immediately Canada: A review of 2020 emergency benefits for businesses

Canada Emergency Wage Subsidy (CEWS)

Canada Emergency Business Account (CEBA) interest-free loans

Canada Emergency Commercial Rent Assistance Program (CERC)

Canada Emergency Rent Subsidy (CERS)

Lockdown Support

Loan Guarantee for Small and Medium-Sized Enterprises

Canada United Small Business Relief Fund

I need financial help immediately Canada: 2021 emergency measures for individuals and businesses

I need financial help immediately Canada – Individuals

I need financial help immediately Canada – Small Businesses

I need financial help immediately Canada summary

CERB update introduction

CERB update: Who can qualify for CERB?

CERB update: What are the CERB pay periods?

CERB update: What is replacing CERB?

CERB update: Can CRA audit CERB?

CERB update: What if you can’t (re) pay?

CERB update: Summary

Insolvency Canada introduction

Insolvency Canada CEWS refresher

Insolvency Canada: The current CEWS statistics

Insolvency Canada: When is an employer eligible for the CEWS

Insolvency Canada: How does an eligible employer qualify for the wage subsidy?

Insolvency Canada: It is not illegal for an insolvent company to apply for the CEWS

Insolvency Canada: How would the CEWS be treated under a formal restructuring

Insolvency Canada: What kind of liability is a CEWS overpayment

Insolvency Canada summary

What is financial literacy in Canada

Why is financial literacy in Canada important?

Financial literacy in Canada and money management go hand in hand

How is financial literacy in Canada assessed?

How is financial literacy in Canada taught in Ontario schools?

What resources are available to teachers for classroom use to teach financial literacy in Canada?

What resources are available for teachers to help parents support their children’s financial literacy in Canada?

Financial literacy in Canada: Canadians share what they wish they learned about money

Ontario Securities Commission Investor Education Fund (IEF) supports financial literacy in Canada

Financial literacy in Canada summary

Canadian business introduction

Canadian business opening-up again

But there are still Canadian business problems

What happens when the government support programs end?

There is one precious commodity Canadian business will need when the support programs stop

Bankruptcy protection will very likely be the answer

How will bankruptcy protections help Canadian business?

The biggest resource Canadian business will need is also going to be its largest enemy

Canadian business summary

Introduction

Government of Canada student loan program announcement

Summer jobs for 2020

Fall 2020 to 2021 assistance for post-secondary students

Summary

The Ira Smith Team is fully operational and both Ira and Brandon Smith are available for telephone consultations, conference calls, and virtual meetings. Stay healthy everyone.

Canada Emergency Response Benefit introduction

Back to the future leads us to the Canada Emergency Response Benefit CERB

The purpose of each “E”

The Canada Emergency Response Benefit

Support to Businesses – the Canada Emergency Wage Subsidy

Canada Emergency Response Benefit summary

***I need financial help immediately Canada*: A review of 2020 emergency benefits for individuals**

***I need financial help immediately Canada*: A review of 2020 emergency benefits for businesses**

***I need financial help immediately Canada*: 2021 emergency measures for individuals and businesses**

**What is financial literacy in Canada**

**Why is financial literacy in Canada important?**

**How is financial literacy in Canada assessed?**

**How is financial literacy in Canada taught in Ontario schools?**

**What resources are available to teachers for classroom use to teach financial literacy in Canada?**

**What resources are available for teachers to help parents support their children’s financial literacy in Canada?**

**Ontario Securities Commission Investor Education Fund (IEF) supports financial literacy in Canada**

**Back to the future leads us to the Canada Emergency Response Benefit CERB**