Canadian Emergency Business Account
- Thread starter Stompin Tom
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ZRrrr
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Similar situation here.....take dividends, shareholder returns, to avoid taxes, now don't qualify as just below the $50,000 threshold. Been reading that lots of small businesses are in the same boat and "maybe" another gov program coming for those of us.
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- #63
Stompin Tom
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A few rumors after chatting with the accountant, they are looking at more programs. One of the ideas being looked at is a refund of all GST payments to the government is 2019, to be returned to the company. To me that one is a little out there, but who would have thought the load guarantee with a 10000 forgiveness would happen?
I am waiting to see the details on the 75% wage subsidy, that could help, but the criteria is important. Its designed to keep people working rather than going on EI where they are paid anyway. The problem for business's like mine is the employee makes to much money to go on EI, so I suspect their will be similar standards on this package. Frankly I would agree, if an employee is making $100,000 a year, should they be subsidized? If so to what degree? To EI standards? Lots of questions on that one.
I guess it depends on the accountant and how they treat the rules some are stringy and won't try to bend anything, but if I was in the high 40's for payroll I would be submitting a correction of a missed payroll in December and magically be over $50k. It's 6ish weeks late to submit, and the fines for not sending in deductions for a few thousand in payroll is small. I guarantee you there is thousands of businesses doing it. And technically speaking, as long as correction is sent prior to applying for the loan you are over $50k. I'm no accountant and can't say 100% it would work, but i'm betting it would.
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Stompin Tom
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now that is opening yourself up to an audit. The thing with payroll is, if audited, you have to be able to submit proof of payment to said employee in that time frame, as well as adjust the T4 you claim to have missed income on. Any payroll check would have cleared the bank 3 months ago. Thats getting pretty sketchy and after this is over the government will be looking hard, real hard for extra revenue.
X-it
Active VIP Member
Well luckily it is break up for some..haha. This government is so dumb they still think a budget balances itself they should audited themselves and find the missing billions. Good thing the west is finally getting something. So what would be your two most used RR channels Stompin Tom?
Maybe more likely to be audited but a business should have everything in line anyway. Obviously you'd have to show it as paid to yourself and claim it on your own income. It would be obvious it was just a way to get the loan, but at the end of the day provided all taxes and penalties are paid on it, it's not like it's cheating the system or anything. Is it fair a business with $49,999.99 in payroll can't get the loan and someone with $50k can?
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- #68
This entire thing is not fair, im positive the goverment will be looking after this is all over who cheated them who didnt and will get all the money back from each and every one they gave it to.
pfi572
Active VIP Member
It will be Harpers fault .
MK4TDI
Active VIP Member
Business owner needs T4 income to qualify ? Or there needs to be T4 income paid out to employees ?
ZRrrr
Active VIP Member
I really don't trust any government these days....Maybe this is a well orchestrated means for the Gov to take a little deeper look into a lot of usually off the radar, smaller businesses.
fredw
Active VIP Member
I guess there needs to be t4s filled out.. I ussally pay cash under table.. kicked me on this
S.W.A.T.
Active VIP Member
The business needs to show over 50k in payroll, don't matter who is went to. My accountant took me off dividends years ago even though I fought him on it because of taxes. In all honesty it has actually saved me a couple times. Because we have a couple businesses that operate under one name we tend to get audited every second year so our books stay legit as its just not worth the hassle of trying to skim a couple bucks.
MK4TDI
Active VIP Member
Yeah I'm on the fence wether or not to apply for it, I paid out 150k ish in wages last year, super slow year (winter season) in berta for me, but I foresee a busy busy spring coming in sask... so I kinda meet the 30% lower sales from January to now, but come May its gonna be back to normal cash flow in sask.
I really dont want to be on their radar for anything
fredw
Active VIP Member
Been down this rd before, get a payout to have to pay it back latter.. prolong the agony..
Would like some of the payout, but this one don't look that positive.. more happy to have grain prices average out once.. and some adequate moisture this year.. that's my payout
MK4TDI
Active VIP Member
Yeah, I'm sceptical of it, as my accountant. Hes waiting for more details before he recommends applying for it. He also recommends filing and paying everything ontime to boot.
We had a slight disagreement on that, they extend my deadline to pay all taxes they gonna wait till the last couple days like usual.
I don't think it would be a good idea to apply for any if your records aren't in line but other then that it seems foolish not to if you qualify.
Dawizman
Active VIP Member
The 75% is up to about $875 per week.
The 30% loss in revenue is the kicker though. We grew in the last year, so we have more revenue but also more costs. Catch 22. We're less profitable, but have more revenue. Had to lay a bunch off otherwise we were going to start running a deficit.
kimrick
RIP Fellow Sledder
So let me get this right!
You do everything to avoid paying taxes?
Now you are trying everthing to get a handout....
Well sir, be honest from the start and you would not be in this boat.
I thought this was to help people in dire sraits?
I see some honest people getting and keeping their employees and the then I see posts of how people want to try to use it to make more money useing it as a tax free loan and and free $10,000 at the end.
I am not sure if some of you folks are just trying to be funny or serious......
There is people out in our country that really have nothing that worked for minimum wage, have children and lost there jobs...
I for one have not and will not be using any of the government funding due to my ethics that I was taught and lived by.
Slam me all you want. I can wake up every day and be proud of myself and not ever have to look over my shoulder to be concerned if I did something wrong to some one or my country......
Yes, I am retired military and proud of it.
Stay strong everyone... We unite together and will always be a Canadian team///////
Gods speed and all stay safe.
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It's not avoiding paying taxes if it's legal. It's a different way to take money out of the company that has positives and negatives. The $50k payroll number is idiotic.
You are welcome to your opinion but I guarantee you most everyone is using the program if they are eligible and many more people are going to be trying to scam the government to get the money also.
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