CRA Tax Relief: 3 Awesome Ways the CRA Is Helping You Out

CRA introduced several tax relief measures that could help taxpayers in awesome ways. The Mullen Group stock is underperforming as an offshoot of the pandemic. The company can apply for the CEWS to rehire laid-off workers.

| More on:

Canada is still in the process of flattening the coronavirus curve, although there are indications that the efforts are proving successful. Prime Minister Justin Trudeau said the country is not out of the woods yet.

While some provinces appear to have reached the peak, the federal government is hoping to develop a high level of immunity. The best-case scenario is to have a vaccine in place. Until then, however, people should expect some public health measures to remain.

Meanwhile, the Canada Revenue Agency (CRA) is providing tax reliefs that can help taxpayers during the pandemic.

Tax date extensions

The CRA’s prompt response to the COVID-19 outbreak is the tax date extension. Individual and corporate taxpayers have until June 1, 2020 to file 2019 tax returns. The deadline for the payment of taxes owed has also been moved to September 1, 2020. It will be a penalty-free extension for 2019 taxes or 2020 installments.

Income support

With employment reductions or layoffs along with social distancing and stay-at-home directives, economic relief is badly needed. Hence, the CRA is providing two forms of cash support — the first is the Canada Emergency Response Benefit (CERB).

Full-time, part-time, contract, and seasonal workers as well as self-employed individuals can receive $500 per week for a maximum of 16 weeks. If you’re eligible, the benefit is available from March 15, 2020, to October 3, 2020. The CRA will accept applications until December 2, 2020.

Additional income support

The second cash support is a twin-boost targeting parents and families with low and modest incomes. In the one-time enhancement of the Canada Child Benefit (CCB), there’s an additional $300 per child. The Good and Services Tax (GST) will double for singles (+$400) and couples (+$600). The CRA will administer all the payments.

Application for CEWS is open

Canadian employers are in a financial bind. As businesses slow down, many companies are implementing cost-saving measures. The first order of the day is to cut manpower complement. Trucking and logistics firm Mullen Group (TSX:MTL) has temporarily laid off 1,000 workers.

Mullen is a potential applicant for the Canada Emergency Wage Subsidy (CEWS). The window is now open and the company can rehire its laid-off workers by applying for the 75% wage subsidy.

According to Mullen Chairman and CEO Murray Mullen, the demand for discretionary consumer goods and its services in commodity-based industries has significantly weakened since mid-March.

This $600 million company provides specialized transportation equipment and trained operating personnel to the oil and gas industry in Western Canada. When the company presented its Q1 2020 earnings report on April 23, 2020, the first message was that Mullen’s 2020 business plan can’t be achieved.

While the company has about $85 million in cash and unused $150 million credit line, the business will be extremely challenging in the next 90 days. With the suspension of dividends and the stock losing by 36.3% year to date, Mullen is not an attractive option if you want to invest in the market today.

Trust taxes

In light of an extended lockdown, Canadians should trust taxes in this crisis-era. The awesome tax reliefs by the CRA should lessen the economic pain. It will enable you to cover the present as well as the near-term financial needs.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends MULLEN GROUP LTD.

More on Energy Stocks

nuclear power plant
Energy Stocks

Where Will Cameco Be in 4 Years?

The uranium industry faces a long-term supply shortfall. Cameco will benefit once actions are taken to rectify this.

Read more »

Person holding a smartphone with a stock chart on screen
Energy Stocks

Here’s How Many Shares of Enbridge You Need to Get $5,000 in Annual Dividends

If you invest $5,000 per year in Enbridge (TSX:ENB) stock, here's how much you could earn in passive income.

Read more »

oil pump jack under night sky
Energy Stocks

2 Canadian Energy Stocks to Buy and Hold for Lifelong Income

These two energy stocks have been upgraded by analysts, and it's clear why.

Read more »

Silver coins fall into a piggy bank.
Energy Stocks

This Overlooked Energy Stock Down 43% is a Dividend Investor’s Dream

Peyto is a natural gas stock with a rapidly growing dividend, strong cash flows, and a strong position in the…

Read more »

oil pump jack under night sky
Energy Stocks

The Top Canadian Stock to Buy for Great Growth in 2025

This Canadian stock has a lot for investors to consider, especially after the approval of a major merger.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Energy Stocks

Generate Passive Income: A $7,000 Dividend Stock Investment

An energy major is the ideal $7,000 dividend stock investment in 2025 to generate passive income.

Read more »

A person looks at data on a screen
Energy Stocks

This Canadian Jewel Yields 4.5% and Looks Seriously Undervalued

Let's dive into why Suncor (TSX:SU) looks like one of the most undervalued dividend jewels Canada has to offer right…

Read more »

Offshore wind turbine farm at sunset
Energy Stocks

If I Could Only Buy and Hold a Single Renewable Energy Stock, This Would Be it

Now could be an opportunistic time for a long-term investor to invest in renewable energy stocks.

Read more »