Menu
Tax Notes logo

COVID-19 Tax Relief Keeps Coming as Schools, Businesses Close

Posted on Mar. 26, 2020

Canadian provinces are rolling out new tax relief measures for individuals and businesses grappling with the economic effects of the coronavirus pandemic, supplementing the recently announced federal relief package.

Schools in Alberta have been closed for over a week, and the provincial government has now frozen education property taxes, reversing a planned 3.4 percent adjustment for 2020. The decision will save residents C $55 million and businesses C $32 million, according to the government. Alberta has deferred corporate income tax collection until August 31, granting companies C $1.5 billion “to help them cope with the COVID-19 crisis,” it added. 

British Columbia unveiled a C $5 billion support package March 23 that includes new tax deferrals and relief for businesses and workers. The provincial COVID-19 Action Plan allows businesses with a payroll higher than C $500,000 to delay paying employer health tax until September 30. Businesses with lower payrolls aren’t subject to the tax. 

The province also extended filing and payment deadlines to September 30 “for the provincial sales tax, municipal and regional district tax on short-term accommodation, tobacco tax, motor fuel tax, and carbon tax,” according to a March 23 government release. An increase in the British Columbia carbon tax and the implementation of a soda tax will also be delayed, according to the release. Those changes were to take effect April 1 and July 1, respectively.

School tax measures for businesses will provide C $500 million in relief and will “allow commercial landlords to immediately pass savings on to their tenants in triple-net leases,” the release says. Schools closed in British Columbia March 17. The provincial government said its plan builds on that of the federal government, which was passed by the House of Commons on March 25.

The Irish government announced a COVID-19 income support scheme March 24 that includes a tax-free wage subsidy of up to €410 per week. The scheme, which replaces a previously announced employer refund scheme that would have provided €203 per employee, will be in place for 12 weeks, beginning March 26, according to the Irish Revenue.

On March 10 the Irish Revenue said it would work with businesses with cash flow interruptions attributable to the coronavirus outbreak, but Collector General Joe Howley encouraged businesses to file their tax returns on time. The best way “to address tax payment difficulties is for a business to continue to send in returns on time and engage with us as soon as payment difficulties start to arise,” he said. On March 13 the Irish Revenue issued information for small- and medium-size enterprises, saying those entities also should continue filing their tax returns on time, even if they are experiencing cash flow difficulties. “All debt enforcement activity is suspended until further notice,” a government release says.

On March 18 Finance Minister Paschal Donohoe also encouraged individuals to file on time as he discussed measures to help businesses and individuals affected by COVID-19. “It is incumbent on those citizens who continue to receive their full income to do their part by paying their bills, taxes, and loans on time,” he said.

The U.K. Supreme Court announced March 23 that it will be closed for the foreseeable future and that hearings will be held via video conference. “Hearings will be live-streamed as usual, although there may be a slight delay before the video on demand recording is available,” a court release says.

On March 24 a hearing was held in Fowler v. HMRC UKSC 2018/0226. The case concerns whether income from a South African resident's diving activities over the U.K. continental shelf is taxable in the United Kingdom or South Africa. If the individual is considered to have been self-employed, South Africa has taxing rights, according to a court summary. On March 24 the first-tier tribunal tax chamber announced that it will stay all proceedings and extend time limits for ongoing proceedings by 28 days.

Copy RID