Confirmed:  The CCR for Small Business is Tax Free

Ottawa has confirmed that the CCR for Small Business received by eligible Canadian-controlled private corporations (CCPCs) will be tax free for the 2019-20 to 2023-24 fuel charge years, as will the final payment for the 2024-2025 fuel charge year.  Draft legislation was released on June 30, 2025 with this announcement; and will be introduced for law making in Parliament this Fall.   Some of the more significant details are discussed below.

Did you know you can go back 3 years to optimize pension income splitting?  You have up to three years to elect to split pension income, or to amend an election.  With the effective due date for the 2019 return being September 30, 2020, one might think that the 2016 election could be amended up to the end of September 2020, but that’s not the case.  Changes to the 2016 election had to be made by May 2, 2020 (three years after the due date for the 2016 return).  However, changes to the election for 2017, 2018, and 2019 may still be made.

Delegates coming to Virtual DAC 2020 are in for an outstanding educational experience which includes pre-approved CE Credits and the promise to be the most unusual and memorable virtual conference you will ever attend. Check out the highlights: our incredible speakers, their cutting-edge topics, our pre-eminent sponsors and our delegates from coast-to-coast, who will participate in everything from wine tasting to cooking classes and goat yoga, after the educational events! Register by September 15.

The federal government announced Monday that tax filing and payment deadlines have been informally extended once again, this time until September 30. Though the deadline officially listed remains as June, no late filing penalties or interest will be charged provided the new September 30 deadline is met.  However, tax credit or benefit recipients should file as soon as possible to avoid interruptions in payments.

On Monday, July 27 a couple of highly anticipated pandemic support measures were passed into law: the changes to the Canada Emergency Wage Subsidy (CEWS) for Period 5 forward and the one-time payments to disabled persons. This latter provision extended the tax-free disability payment to two categories of recipients who will not require a Disability Tax Credit to receive it.

We hope that you’re enjoying your summer holidays. Please note that our editorial team is on summer break, too. Knowledge Bureau Report will return August 12. However, our dedicated Educational Consultants are busy at work for those of you who wish to start Summer School online before the end of the month.

On July 17, 2020, a redesigned Canada Emergency Wage Subsidy (CEWS) was proposed with substantive changes over previous periods and the new rules are very complex. The good news is that the program has been extended to December 19, 2020 and potentially all businesses with a revenue loss over 0% could qualify for a wage subsidy.