As the prevalence of COVID-19 decreases, so does the need for Government assistance programs. Crowe MacKay’s trusted advisors share an update on the CEBA and RRRF loan repayment deadline extension as well as which programs should be reported on your income tax return.
CEBA and RRRF Loan Deadline Extension
The Federal Government extended the deadline for repayment of the Canada Emergency Business Account (CEBA) loans to qualify for partial forgiveness from December 31, 2022, to December 31, 2023, for eligible borrowers in good standing.
Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000). Loans that are still outstanding after the repayment deadline will be converted to two-year term loans with an annual interest rate of 5% commencing on January 1, 2024, with loan repayments fully due by December 31, 2025.
The repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund (RRRF) has also been extended to December 31, 2023.
Reporting COVID-19 Assistance
Government assistance received in the year such as the Canada Worker Lockdown Benefit (CWLB), the Canada Recovery Sickness Benefit (CRSB) or the Canada Recovery Caregiving Benefit (CRCB) are taxable and must be reported on your 2022 income tax return. The Government should be issuing T4A tax slips to individuals who received assistance in 2022.
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.