It’s hard times. And you have an idea in which you want to aid communities by providing some sort of pandemic relief programs through a charity. Don’t know where to begin or what information you need? We can help! We have provided some basic information in the discussion below. 

Where to apply with your charity registration application? 

The CRA has encouraged that before you apply for a charity, research and consider if there are other registered charities that are already established, that you donate or offer services to those firstly. However, if you still wish to apply and register, please do so online. Please note, due to the pandemic delays, review of paper and digital based applications have been delayed compared to the normal standards and will hopefully improve with time. 

Applying your T3010

In submitting your  Form T3010, Registered Charity Information Return, please note that the filing deadline has been extended to December 31st, 2020. The form is due between March 18, 2020 and December 31, 2020. The easiest way to submit this form is online through My Business Account for charities 

Staying Compliant 

In understanding the amount of work and support our charities do for our communities, the CRA wants to make sure that they are able to provide support during this difficult time of the pandemic. In resuming all compliance activities to keep the public and employees safe, an education-first approach will be maintained to compliance. 

Auditing 

With respect to auditing, the CRA’s Charities Directorate will be requesting charities to resume ongoing charity audits, initiate the Canada Emergency Wage Subsidy post-payment audits and begin new audits. 

Charity Revocations 

With the many customers H&T Accounting Services work with, we encourage everyone to continue staying compliant with all the requirements of their registered charities. Failure to comply has implications and your registration may be revoked. During this time, the CRA has resumed processing revocations for failure to comply with charity requirements. Please remember revocations will relate to reporting periods that predate the pandemic months. The CRA will be sending out multiple notices that will need to be addressed and if they believe that the registration needs to be revoked for whatever reason, they will send out a letter in the mail stating why, also explaining your rights for objection and appeal.

H&T Accounting Services understand that keeping up with all these changing regulations and procedures can be frustrating at times, however, we are here to assist you every step of the way! Do not hesitate any longer, reach an expert today!

This past year of 2020 has been a difficult one for all of us. Many of us have been financially affected in ways that were the least expected and we understand this. For many, a simple emergency fund was probably not enough to get through these past months especially if you had lost a job for some period of time or had a significant decrease in your income. Seeking unemployment or some government COVID-19 financial aid may have been the only option for many people experiencing low to no income for a period of time. 

We discuss this because it is very important to stay up to date with tax regulations for tax season coming up. We want to take this opportunity to help inform our customers of what may lie ahead regarding benefits and taxes.

T4A Slips 

With the government providing income support to many families and individuals, it becomes crucial to understand what amounts will be reported during tax time. 

If you received any COVID-19 emergency or recovery benefits from the Canada Recovery Agency (CRA), please note you will get T4A slips for the amounts you received in benefits. These benefit amounts are taxable and must be reported. 

You will get a T4A slip if you received:

• Canada Emergency Response Benefit (CERB) with the CRA
• Canada Emergency Student Benefit (CESB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)
• Provincial or territorial COVID-19 financial assistance payments

You will receive one T4A slip which includes all your COVID-19 benefit payments from the CRA.

T4E Slips for 2020 tax year

Further, if you received Canada Emergency Response Benefit (CERB) from Service Canada or any Employment Insurance (EI) benefit payment, any benefit amount received before December 31, 2020 is taxable and must be reported. You will receive a T4E tax slip for the amount you received. 

Interest Relief

The government is further providing interest relief to individuals who meet a particular criteria as provided here, 

• Your total 2020 taxable income was $75,000 or less
• You received at least one COVID-19 benefit in 2020:

• Canada Emergency Response Benefit (CERB)
• Canada Emergency Student Benefit (CESB)
• Canada Recovery Benefit (CRB)
• Canada Recovery Caregiving Benefit (CRCB)
• Canada Recovery Sickness Benefit (CRSB)
• Employment Insurance (EI) benefits
• Provincial or territorial emergency benefits
• You filed your 2020 income tax and benefit return
• You have a balance owing for your 2020 taxes

If you meet all eligibility criteria and have filed your 2020 tax return, the CRA will automatically apply interest relief on your 2020 taxes owing.You will not have to pay interest on any amount owing from your 2020 taxes until April 30, 2022. Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA.

H&T Accounting Services work around the clock meeting all client needs. We are here to answer all your questions that you may have. Call us TODAY for any financial need you may have!