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Financial Advisory From Segal

At Segal LLP, we recognize the trust you have placed in us as your financial advisors, and in these unsettling times, we are ready to assist. Here are a few ways we can help you deal with the current climate of uncertainty:

1) Assess your current financial position. You may want to consider having some financial modelling work done to project your cash flow and financial position. With a clear understanding, you can adjust your planning accordingly. Further, we can work with your financial institution in preparing a turn-around plan to assist with financing.

2) Assist with filing your corporate taxes as soon as possible, particularly where you expect a refund of corporate instalments. An assessed tax return may also be required by a lender as part of their decision-making.

3) Prepare your annual financial statements as quickly as possible. Regardless of whether your year-end statements are typically audited, reviewed, or compiled primarily for tax purposes, these may be a key tool in obtaining short or longer-term financing as they will be one of the documents initially requested by a lender, as well as providing the basis for your annual tax filing.

4) Work with you to file your personal tax return as quickly as possible, particularly if you are expecting a tax refund. The CRA is currently assessing basic income tax returns in less than 24 hours and paying refunds in as quickly as a week of filing in some cases. Notwithstanding the extended deadlines now allowed by the CRA, this could be particularly helpful if:

  • You need a refund/cash as soon as possible or just want to have a rainy-day fund during the next few unpredictable weeks.
  • You need a Notice of Assessment so you can negotiate a lower mortgage or other purposes.
For any assistance with your financial needs, please do not hesitate to reach out to us. With a diverse team of business advisors, we can help you effectively plan your future through these uncertain times.

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Update From the Canadian Government & CRA

The Canada Revenue Agency (CRA) has just announced it will be extending the personal tax deadline as a result of COVID-19. The new tax filing deadline for personal tax returns is now June 1, 2020. The new due date for taxes payable related to the 2019 T1 tax filing is now August 31, 2020.

While the extended deadline provides much-needed relief in these hectic times, it is important that we stay diligent in filing your personal income tax returns. Please note the following:

  • It is our intention to complete all tax returns by April 30, notwithstanding the extended deadline.
  • Personal tax organizers were distributed last week. If you did not receive one, you can access it here. The personal tax organizer provides us with the information that is critical to filing your tax return in an expeditious manner.
  • Segal has debuted its new online portal for collecting documents. If you have anything to send to your Segal advisor- your tax organizer, supporting tax documents, etc.- we ask that you please scan and upload them. The portal is fast, safe and secure, and a particularly important tool to have in reducing the spread of COVID-19. Those packages sent electronically will be processed quicker than those sent as paper packages.

Some other highlights from CRA’s announcement include:

  • For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020
  • The Canada Revenue Agency will allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
  • CRA will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.

In addition to CRA changes, the Canadian government announced its COVID-19 Economic Response Plan, which will provide up to $27 billion in direct support to Canadian workers and businesses. We have listed some of the highlights below.

  • Temporary Income Support for Workers and Parents
  • Waiving the one-week wait period for individuals in imposed quarantine to claim Employment Insurance (EI) sickness benefits
  • Waiving the requirement to provide a medical certificate to access EI sickness benefits
  • Introducing the Emergency Care Benefit of up to $900 bi-weekly, for up to 15 weeks. This benefit provides income support to:
    • Workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits
      Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but who do not qualify for EI sickness benefits
    • Parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not

Income Support for Individuals Who Need It Most

  • A one-time special payment by early May through the GSTC. The payment will double the maximum annual GSTC payment amounts for the 2019/2020 benefit year. The average boost will be close to $400 for single individuals and $600 for couples.
  • An increase in the maximum annual CCB payment amounts for the 2019/2020 benefit year by $300 per child. Affected families will receive the increase as part of their May payment.
  • Additional measures include the following:
  • Providing $305M for a new distinctions-based Indigenous Community Support Fund to address the immediate needs in First Nations, Inuit and Métis Nation communities
  • Six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals currently in the process of repaying these loans
  • Reducing the required minimum withdrawals from RRIFs by 25% for 2020 in recognition of volatile market conditions
  • Providing $157.5M to the Reaching Home Initiative to continue to support people experiencing homelessness during the COVID-19 outbreak
  • Supporting women and children fleeing violence, by providing up to $50M to shelters and assault centres to help with their capacity to manage or prevent an outbreak in their facilities.

Helping Business Keep their Workers

  • To support businesses facing revenue losses and to help prevent layoffs, the government is proposing to provide eligible small employers with a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% or remuneration paid during that period, up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will immediately benefit from this support by reducing their remittances of income taxes withheld on their employee’s remuneration. Businesses eligible for the small business deduction, as well as non-profit organizations and charities will be eligible for this benefit.

Ensuring Businesses Have Access to Credit

  • The Business Credit Availability Program will allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10B of additional support to small and medium-sized businesses. BDC and EDC are cooperating with private sector lenders on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism. Farm Credit Canada will also provide support to farmers and the agri-food sector.
  • The office of the Superintendent of Financial Institutions is lowering the Domestic Stability Buffer effective immediately. This will allow Canada’s large banks to inject $300B of additional lending into the economy.
  • The Bank of Canada cut interest rates by 0.75% as a proactive measure in light of the impact of COVID-19 on the Canadian economy.

We encourage you to read the full report here in case you and/or your business may benefit from this.

We appreciate your continued support. If you have any questions, please do not hesitate to reach out to us. questions, please do not hesitate to reach out to us.

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Segal LLP Update: COVID-19

As your trusted advisors, our objective is to keep our clients updated on how we are handling the global spread of COVID-19 (Coronavirus) and our services to you.

  • Currently, the majority of Segal’s team is working remotely. For now, our office remains open with restricted access on a limited schedule to receive courier and mail deliveries, and to manage our client needs.
  • Your Segal advisors are available by email and/or through their direct telephone lines. If you are calling after hours and/or are unable to reach a member of the team, please leave a message and your call will be returned as soon as possible.
  • We are monitoring and responding to all inquiries, both email and voice mail, as quickly as possible and thank you in advance for your patience.

Document Sharing and Collaboration

In order to ensure our clients can safely and securely share information with us, whether personal or corporate, we are expediting the release of our ShareFile portal project.

  • You will be receiving an e-mail within the next few days with an activation link to enable your account and create your password. This link is unique to you and must be used within the next 30 days. Please make sure to check your spam or junk folder.
  • This upgrade to our technology toolbox will allow you to quickly and securely upload, share and access your documents. It will also enable the Segal Team to collaborate and share documents with clients. In the interim, if you have personal tax or other documents ready to send to us, please reach out to your advisor for assistance in providing those to us electronically.

For those of you who cannot provide electronic documents, we are accepting courier and mail at our office.

The Segal Team is confident in our ability to provide exceptional service while ensuring our team, clients and community remain healthy and safe during this unprecedented event.

We will continue to keep our clients updated on a regular basis.

On behalf of the Segal Team, we extend our sincere thanks for your ongoing support.

 

Sincerely,

Dan Natale
Managing Partner – Segal LLP

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COVID-19 Update

Dear Clients & Associates,

We are writing today to update you on the steps the Segal team is taking in response to the global spread of COVID-19 (Coronavirus). We are closely following this situation, in addition to monitoring communications from Toronto Public Health. While our offices remain open and accessible, we are limiting meetings, events and travel. Our primary objective is the safety and well-being of our team, clients, families and communities and we know our clients share that goal.

Fortunately, Segal is well equipped with the technology that will enable us to work virtually, to ensure our client work stays on schedule while still taking precautions.

Sharing and Collaborating
  • If you are not yet set-up on the NEW Segal ShareFile portal, we are in the midst of transitioning our clients to the new system and encourage you to embrace this secure method of sending, receiving and signing documents. As we work towards having all clients set up with individual portal access, please prepare to provide us with your documents, electronically, wherever possible. We will, of course, receive documents in-office for anyone unable to use this technology.
  • While we will still welcome our clients into our office, please note that we have the technology available for online meetings, if you so choose. Please do not hesitate to reach out to your Segal advisor if you wish to take advantage of this option.
We do anticipate an announcement from CRA on their response to COVID-19 and will keep you updated as we learn of any changes to deadlines or policies. However, we continue to plan for and work toward the current deadlines and appreciate our clients’ support in doing the same.

We are committed to maintaining the quality and timeliness of service that you expect from Segal. The safety of our clients and staff is our utmost priority, and we will do everything we can to adapt to the current situation while continuing to provide you with exceptional service.

We are all in this together – please do not hesitate to reach out to your Segal advisor if you have any questions or concerns.

Sincerely, Dan Natale
Managing Partner – Segal LLP

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Segal Welcomes New Tax Principal

We are pleased to announce that Daniel Wilson, CPA,CA, has joined Segal’s tax group as a Principal. Specializing in income tax for owner-managed businesses and professionals, his experience includes corporate and partnership reorganizations, tax aspects of sale and purchase of businesses, cross-border taxation, estate planning and personal and corporate tax planning. He is also a frequent speaker on the subject of tax matters and has served as a group study leader and in-residence tutorial leader for CPA Canada’s In-Depth Tax Course. Daniel also serves as a Board Director and member of the Finance Committee for JVS Toronto.

On behalf of the Partners and staff of Segal LLP, we extend a warm welcome to Daniel.