New Trust Reporting Requirements on Pause
The legislation to support the new T3 beneficial ownership disclosures that was proposed in the 2018 budget—and that was set to come into effect for trusts with December 31, 2021 year ends—is still pending, as it has yet to receive royal assent. The CRA has just confirmed that these new T3 beneficial owner disclosures are NOT required for Trusts with December 31, 2021 year ends. This means that Trusts which have been exempt from filing in the past will remain exempt from filing, and the significantly expanded trust reporting requirements on all taxpayers connected to the trust are not yet required. There is a good chance that the new rules will come into effect for the 2022 year end, but at this point the CRA has not released an updated timeline.
Changes to the CEBA Loan Repayment Deadline
Deputy Prime Minister and Minister of Finance Chrystia Freeland announced on February 12th that the repayment deadline for CEBA loans to qualify for partial loan forgiveness has been extended from December 31, 2022 to December 31, 2023 for all eligible borrowers in good standing.
The CEBA program provided interest-free loans of up to $60,000 to almost 900,000 small businesses and not-for-profits to help cover operating costs during the pandemic. Loan forgiveness of up to 33 percent ($20,000) will be extended if the balance of the loan is repaid on or before the new deadline. Note: the application deadline for CEBA loans was June 30, 2021.
Any CEBA loan amounts outstanding after the December 2023 deadline are subject to 5% annual interest beginning on January 1, 2024, with the full principal repayment due on December 31, 2025.
Minister Freeland also announced that the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the Regional Relief and Recovery Fund is extended to December 31, 2023.
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