Government Tax Updates Feb 2021

Self-employed individuals whose net self-employment income was less than $5,000 and who applied for the CERB will not be required to repay the CERB, as long as their gross self-employment income was at least $5,000 and they met all other eligibility criteria.

  • The Prime Minister verbally stated that those who could have applied for CERB under the gross revenue definition, but didn’t, will not be permitted to retroactively apply.
  • The Prime Minister did not say that the definition of income was intended to mean gross income. Rather, he maintained the position that this relief has been provided to individuals who mistakenly applied based on incorrect advice from the government.

For those above that have already voluntarily repaid the CERB, the government will return any repaid amounts to these individuals.

Individuals with a taxable income of $75,000 or less in 2020 will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022 if they have received income support in 2020 through one or more of the following: CERB, CESB, CRB, CRCB, CRSB, EI benefits, or similar provincial emergency benefits. Interest relief will be automatically applied.

CRA-administered credits and benefits normally paid monthly or quarterly, such as the Canada Child Benefit and the goods and services tax/harmonized sales tax credit will not be applied to reduce individuals’ tax debt owing for the 2020 tax year.

CRA has not extended the tax filing deadline.

The above information is for informational purposes only.