What the CRA Said

CRA will issue T4As to COVID-19 CERB and CRB recipients

Canadians will begin receiving T4A slips from the CRA for these benefits to support their tax filing. The T4A is virtually identical to the T4 slips Canadians are used to receiving from their employers, but rather than employment income, they provide the amounts of COVID-19 benefits received from the CRA in 2020. Residents of Quebec will receive both a T4A and a RL-1 slip.

The Government of Canada launched an online calculator to hep buseinsses apply for the new Canada Recovery Hiring Program:

The CRHP supports payroll as business grow, whether as a result of hiring staff, increasing shifts or increasing overall pay.  The calculator integrates the new CRHP with the Canada Emergency Wage Subsidy, automatically showing applicants which subsidy will provide them with more support based on the information entered.

The CRHP web pages  include detailed information about eligibility requirements, how payment periods are structured, and how the CRHP is calculated.

Some foreign-based digital economy businesses required charging GST/HST on July 1, 2021

Many mobile apps, online video streaming services and other digital platform-based products that Canadians enjoy are sold by businesses beyond our borders. These businesses have not previously been required to charge Canada’s sales tax, also known as GST/HST, when making sales in Canada. Canadian companies that supply similar products and services are already required to collect this tax. To level the playing field, the Government of Canada has introduced new measures to ensure Canada’s sales tax applies in a fair and effective manner to the growing digital economy. As a result, starting on July 1, 2021, Canadians will see GST/HST charges when they make purchases from affected businesses.

The measures will affect businesses that provide the following:

• cross-border digital products and services, like video or music streaming services;
• platform-based short-term accommodation, like homestays or vacation rentals; and
• goods supplied through fulfillment warehouses in Canada.

Affected businesses will be required to register for, charge, collect and remit GST/HST on these products and services. Once registered, businesses will be listed on an online registry, which will be available on Canada.ca as of July 1, 2021.

You can learn more about the GST/HST digital economy measures by visiting GST/HST for digital economy businesses.

If your business requires help in administering GST/HST, contact Shajani LLP.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2021 Shajani LLP.

Shajani LLP is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning services.