The Canada Emergency Business Account (CEBA) provides interest-free loans of up to $40,000 ($10,000 of which is forgivable) for small businesses and not-for-profit organizations. An additional $20,000 (half of which is forgivable) has also been made available for applicants specifically impacted by COVID-19. However, the government shifts its focus to ensuring that applicants were eligible for the relief that they claimed and received. Presently, the CRA is working on creating a post-payment tax audit program. To learn more, get in touch with Faris Chartered Professional Accountant today.
If you fall under the payroll stream, you will apply for the CEBA directly with your financial institutions. The government of Canada will assess the application and inform your financial institution of their decision. If you fall under the non-deferrable expenses stream, you should have eligible non-deferrable expenses between $40,000 and $1,500,000. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance. These expenses will be verified and audited by the Government of Canada. If you need to learn more, contact Faris Chartered Professional Accountant today.
For those applicants that are successful and receive the CEBA loan, there are unsurprisingly tax consequences. In essence, the Forgivable Portion of the loan must be included in the income of the Participant, even though it is unclear at that point whether the portion of the loan will be forgiven. Whether or not the portion of the loan is forgiven will instead impact the tax consequences in the year of repayment. To learn more, get in touch with Faris Chartered Professional Accountant today.
“Before finding Faris CPA, I have worked with 2 other companies, and they don’t come close to the amount of help that the firm has given me. They were a big help in filling outstanding tax returns under the Voluntary Disclosure Program and their fee was reasonable. Sam always goes the extra mile to make sure that all my questions are answered. I highly recommend this firm.”
“I have been using Faris CPA’s tax accounting services since 2017, and I’ve never had problems managing my finances ever since. The quality of service they offer is top-notch, and they always keep me updated. If you’re looking for a CPA, just give them a call and avail of their assessment. I assure you, you won’t regret choosing Faris CPA.”
“Sam has been taking care of my business’s taxes since 2018. Working with Faris CPA was one of the best business decisions I’ve made, and this firm continues to deliver good work every year. Great, reliable Toronto firm.”
An audit by the CRA can be a frightening experience. If you are audited, you can be found guilty of tax evasion or any other tax problem. The auditor will ask for your books, records, and bank statements. If any of this information is found to be incorrect or incomplete, it may be used against you. The penalty for tax evasion can be a costly one. Call us today for a confidential initial assessment about any accounting or tax matters. As an experienced, certified, licensed, and expert tax accounting firm, we help our clients handle all tax and accounting issues. give us a call today at 1 844 340 5771.
Dealing with a CRA audit is incredibly stressful and can end up being very expensive, a professional can help you through this process by saving you time, money, and giving you peace of mind. A tax audit professional can help by getting audited financial statements organized and reviewing them, which can help you win your case against the CRA. If you’re at risk or if you want to avoid a personal or corporate tax audit in Toronto, call us at 1 844 340 5771.
If you receive the CEBA loan, make sure to keep track of all payments and loan forgiveness.
Unfiled tax returns are a common problem for individuals, corporations, trusts and estates. A tax accountant can help you deal with unfiled tax returns and even avoid penalties and prosecution through the Voluntary Disclosure Program. Unfiled tax returns should be addressed sooner rather than later so that you can get up to speed and avoid additional consequences. Contact the professionals at Faris CPA today for an assessment. Call 1 (844) 340-5771 or use the contact form to get started.
After applying, all applicants are encouraged to check the status of their CEBA Loan online at https://status-statut.ceba-cuec.ca/, but if you continue to have questions you may call the CEBA Call Centre at 1-888-324-4201. If approved, funds will be deposited directly into the account you provided. The full process will take 15 business days.
You can reapply after it’s rejected. You can wait 5 to 7 business days after finalizing your reapplication before checking your loan status on this loan status website or with the call centre. You will need to submit a new application and attestation to the financial institution that provided you with your original CEBA loan. You will not need to resubmit your original application, or re-upload expense documents.
Yes, applications can be submitted for each legal business entity that meets the eligibility criteria for CEBA. Each qualifying business must have a unique 9-digit Canada Revenue Agency (CRA) Business Number. Each qualifying business is limited to one CEBA loan.
No. The sole purpose of CEBA is to provide small businesses and not-for-profits interest-free loans of up to $60,000 from the $73 billion budget. Therefore, big businesses are not eligible for the Canada Emergency Business Account program.
Employment income in CEBA is a variable that the CRA considers when checking for eligibility requirements. The CEBA application process can either be the Payroll Stream or the Non-Deferrable Expense Stream. The process you will be following depends on the amount of employment income paid in the 2019 calendar year (Payment Stream – Cdn. $20,000 to Cdn. $1,500,000 and Non-Deferrable Expense Stream – Cdn. $20,000 or less).
This depends on where you will be using the money. If you use it for purposes like payroll, rent or lease payments, payments incurred for insurance-related costs, property taxes, etc., then the tax-deductible amount will be reduced by the amount of government assistance. Since there was a reduction to the expense, the taxable income will increase, making the forgivable portion of the CEBA loan taxable.
The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.
Sam Faris reduced the significant unreported income based on net worth audit to be nil. Sam’s approach in fighting these types of complex audits is unique and sophisticated. He found countless mistakes made by the auditor which were rectified when Sam appealed the audit decision. Instead of owing significant amount of taxes, Sam reduced it to zero. I highly recommend to hire Sam for this type of audits and any CRA problem.”