Category: Domestic Tax

Federal government denies expenses on short-term rentals

Posted on by Edixon

The Federal government has introduced new proposed measures to disincentivize short-term rentals that aren’t in compliance with their local jurisdiction as of January 1, 2024.  This joins other housing affordability legislation like the Underused Housing Tax Act. 

The 2023 Federal Economic Statement noted that in the cities of Toronto, Montreal, and Vancouver, there are an estimated 18,900 homes that were being used for short-term rentals (and more than half of Toronto’s short-term rentals are unregistered). 

These new measures may result in increased rental income by the taxpayer, making the short-term rental business model less appealing and viable.  Read further details in this article, written by RSM Canada.

 

Read Full Article

Employment Insurance: Misconduct

Posted on by Edixon

An August 24, 2023, Federal Court of Canada case reviewed whether the taxpayer’s employment had ceased due to misconduct, which would render the taxpayer ineligible for employment insurance. The taxpayer worked at a community health care centre that required all employees to provide proof of full vaccination against COVID-19 unless they provided evidence of a valid medical reason or they had a valid human rights reason (including religion) in accordance with the Ontario Human Rights Code for not being vaccinated. The Social Security Tribunal found that the taxpayer lost his employment due to his own misconduct because he was aware of his employer’s vaccination policy and the consequences of not complying. The Court found that this decision was not unreasonable.

ACTION ITEM: An employee’s cessation of employment due to their failure to comply with the employer’s vaccination policy may result in that individual being ineligible for employment insurance.

REVIVAL OF A CORPORATION: Tax Collection

Posted on by Edixon

A June 12, 2023, Court of King’s Bench of Alberta case reviewed CRA’s application to revive a corporation dissolved in 2020. The former sole shareholder opposed the application. The corporation’s capital losses (as quantified during an audit of the 2013 and 2014 years) were used in 2017 and 2018. CRA sought to revive the corporation and issue notices of assessment for 2017 and 2018.

Revival granted

Under the Alberta Business Corporations Act, a creditor has standing to ask that a dissolved corporation be revived. While taxpayers remain liable for tax when income is earned, the liability does not become a debt until taxes are assessed. As no notice of assessment had been issued, CRA had no standing as a creditor. They would only become a creditor if they issued a notice of assessment. This created a circularity issue as an assessment could not be issued to a dissolved corporation. However, the Court has the power to designate someone as an “interested person,” allowing the designated person to revive a dissolved corporation. The Court found that CRA had a valid interest in the revival and sought this remedy to further its interest; that is, to issue a notice of assessment to convert the taxpayer’s liability for taxes into a debt. While the revived corporation would have no assets, no property, no directors, and no shareholders, a dissolved corporation that has been revived is deemed to always have existed. CRA argued that they could pursue the former shareholders on the basis that assets were transferred on dissolution to non-arm’s length parties for less than fair market value consideration. Similar rules are applicable in other provinces.

ACTION ITEM: Dissolving a corporation may not protect former shareholders from CRA taking measures to collect a tax debt.

SURCHARGE TO ACCEPT PAYMENT VIA CREDIT CARD: GST/HST?

Posted on by Edixon

As of October 2022, merchants could charge an additional fee for accepting payment via credit card. In a March 28, 2023, Technical Interpretation, CRA opined that the additional fee would be a separate exempt supply of a financial service and, therefore, not subject to GST/HST if all of the following conditions are met:

  • the fee is charged to the cardholder solely for the acceptance of the use of the credit card as a payment method and is not charged if another payment method is used;
  • the fee is imposed by (and is thus the revenue of) the merchant who provides to the cardholder the property or service that is purchased with the use of the credit card and not by a person who acts as a billing agent or payment service provider in facilitating the payment;
  • the fee is subject to the relevant credit card network rules relating to surcharging, including rules regarding the calculation and level of the surcharge; and • the fee is shown and charged separately to the cardholder.

ACTION ITEM: If charging an additional fee to accept credit cards, ensure you satisfy the above conditions to ensure the fee is not subject to GST/HST.

ENHANCED GST RESIDENTIAL RENTAL REBATE: Increased Incentives

Posted on by Edixon

On September 14, 2023, the Department of Finance provided details on a proposal to enhance the existing GST rental rebate. In general, the existing rebate provides a 36% rebate of the GST component of the price paid by landlords to construct, or purchase newly constructed, rental property. The existing rebate begins to be phased out for properties valued at over $350,000 and is eliminated at $450,000.

The proposal would increase the rebate from 36% to 100% and remove the phase-out thresholds for properties with a value over $350,000. The proposal would apply to certain rental housing projects that begin construction between September 14, 2023, and December 31, 2030, inclusive, and complete construction by December 31, 2035.

To qualify for the enhanced rebate, new residential units would need to meet the requirements for the existing rental rebate and be in buildings meeting the following criteria:

  • the property must contain at least four private apartment units (units must have a private kitchen, bathroom, and living area) or at least 10 private rooms or suites (examples of residences for students, seniors, and people with disabilities were provided); and
  • at least 90% of the residential units in the building must be designated for long-term rental.

Projects that convert existing non-residential real estate, such as an office building, into a residential complex would also be eligible if all other conditions are met. Public service bodies would also be eligible to access the enhanced rebate.

The enhanced rebate will not apply to other properties, such as individuallyownedcondominiumunits, single-unithousing, duplexes, triplexes, or housing co-ops; however, the existing rebate would still be available. Substantial renovations of existing residential complexes would not be eligible.

On September 21, 2023, the Bill to enact these measures was introduced in the House of Commons. This Bill did not include all the criteria for eligible projects but provided that the remaining specifics would be set by regulation in the future.

ACTION: If involved in developing multi-unit residential rental property, consider whether you are eligible for this enhanced GST rental rebate.

Tax Considerations for Canadian Snowbirds

Posted on by Edixon
Canada is known for its long and frigid winters. Many Canadians, often referred to as snowbirds travel south to the USA to escape the freezing Canadian temperatures, taking extended vacations to enjoy the year-round warmth that parts of the United States have to offer. These so-called snowbirds should carefully plan their stays in the USA, however, since a stay exceeding a specific number of days might have unintended Canadian and US income tax consequences.
 
Canadian income tax consequences for snowbirds

Snowbirds should continue to file their Canadian tax return, as usual, reporting any worldwide income earned in the year on their T1 income tax and benefit return, whether received from inside or outside of Canada. Similarly, they should claim all the applicable deductions and credits and pay the federal and provincial or territorial taxes based on their residential ties. This generally means that any income earned by the snowbirds from the USA should be reported in their T1 return. However, to avoid double taxation, they will be able to claim a credit for the amount of any US tax paid by them, thereby reducing their Canadian tax liabilities.

US income tax consequences for snowbirds

On spending a significant amount of time in the USA, snowbirds might not realize that they may be subject to US income tax obligations by becoming, in effect, US residents as per the US tax residency rules. For US tax purposes, the residential status of a snowbird is determined under either of the US domestic tax rules for residency below. If they meet either of these tests, they will be considered a US resident and will need to comply with US income tax laws.

  1. Physically present in the USA in the current calendar year for more than 183 days
  2. Substantial presence test (SPT)

Snowbirds who are in the USA for less than 183 days in the current year can still be treated as US residents for tax purposes if they meet the SPT.

The SPT would be met if they are physically present in the USA for at least:

  • 31 days during the current year; and
  • A total of 183 days during the three-year period that includes the current and the immediately preceding two years, counting:
    • All the days they were present in the USA in the current year, and
    • One-third of the days they were present in the USA in the first year before the current year, and
    • One-sixth of the days they were present in the USA in the second year before the current year.

It is worth noting that for the SPT, a day generally includes any part of the day spent in the USA unless the individual is in transit through the USA. Furthermore, the purpose of the stay in the USA does not affect the SPT.

There are certain exceptions from the tests above that exempt snowbirds from being treated as US residents for tax purposes. These are discussed below.

1.    Canada–US income tax treaty “tie-breaker” provision – greater than 183 days

The tie-breaker rule in the income tax treaty between Canada and the USA  allows a taxpayer treated as a tax resident of both the USA and Canada under their domestic tax rules to only be treated as a resident of the country to which they have stronger ties to. Essentially, this rule will allow the taxpayer to remain a resident of one country as opposed to two. 

To be exempt under the treaty, snowbirds must demonstrate that they have stronger ties with Canada than the USA, including a permanent home, social/economic ties, habitual abode, and citizenship. In addition, they must file Form 1040NR along with a fully completed Form 8833 (treaty-based return position disclosure) explaining why they should be considered a resident of Canada and not a resident of the USA. The filing due date of both the forms—Form 1040NR and Form 8833—is June 15 of each year.

2.    Closer connection exception—SPT

Even after meeting the requirements of the SPT in a given year, snowbirds may still be able to avoid being considered US residents using the closer connection exception. Under this exception, snowbirds need to demonstrate:

  • A “closer connection” to Canada, and 
  • That they were in the USA for less than 183 days in the year.

To claim this exception, snowbirds must first establish that they maintained more significant residential ties with Canada than with the USA. A closer connection generally exists if their social and economic ties (such as the location of a permanent home; family connections; personal belongings; business and banking ties; and social, political, cultural, or religious affiliations, etc.) remain closer to Canada. Secondly, they have to stay in the USA for less than 183 days during the year for which the exception is claimed. On satisfying both these conditions, snowbirds can fall under the closer connection exception.

In addition, they must file a US Form 8840 (closer connection exception statement for aliens) for each year for which the SPT is met, and the closer connection exception is claimed. Similar to Forms 1040NR and 8833, the filing deadline for Form 8840 is June 15 of the year following the end of the relevant tax year unless the filing date falls on a weekend or a holiday. Filing the form will allow them to maintain their tax status as a non-resident of the USA under US tax law.

Snowbirds owning US real property

Snowbirds owning US real estate property might be liable for US income tax regardless of whether they are treated as a US resident for tax purposes. While owning and using US real estate property only for personal purposes might require them to report the property on their T1 return, they do not have any US annual filing obligations with regard to that property. However, renting the US property for more than 15 days during the year or the eventual sale of the property may trigger US tax and filing obligations. 

Snowbirds renting out their homes in the USA for more than 15 days during the year and earning rental income from investment properties are usually subject to a 30%  US non-resident withholding rate which satisfies their US tax requirements. However, snowbirds can make an election to be taxed on net rental income (after taking into consideration certain expenses related to the rental income) at graduated tax rates applicable to the individual which can be more beneficial and reduce the tax liability. However, to elect to file on a net rental basis, the taxpayer will need to complete Form W-8ECI to avoid the 30% withholding tax. The form applies to a foreign national who is the beneficial owner of the US source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the USA.

If the election is filed, the snowbird will be required to file a US tax return (Form 1040NR) to report the net rental income.

The taxpayer will require a US tax identification number to make this election and to file the US return.

Similarly, the sale of a US property would be subject to a 15% US non-resident withholding rate on the gross sale price at the closing date. However, the snowbird can file a waiver to have this withholding based on the net capital gain (if any) and/or claim a possible exemption. The snowbird would then report the net capital gain realized from the sale on a US tax return and claim any withholding as an instalment toward their final liability.

Since US net rental income or US net capital gain would also have to be reported on their Canadian tax return, the snowbird can claim any US tax paid on their US return as a credit on their Canadian return to reduce their Canadian tax and avoid double taxation.

Key takeaways

While an extended vacation to warmer locales may be an excellent way to beat the Canadian winter blues, travellers must keep abreast of any US tax reporting obligations they may be subject to. Keeping track of the number of days spent in the USA is an important first step for all snowbirds. Staying under the 183-day threshold may help snowbirds avoid any unintended tax consequences.



This article was written by Frank Casciaro, Chetna Thapar, Danielle Wallace and originally appeared on 2022-07-28 RSM Canada, and is available online at https://rsmcanada.com/insights/services/business-tax-insights/tax-considerations-for-canadian-snowbirds.html.

The information contained herein is general in nature and based on authorities that are subject to change. RSM Canada guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM Canada assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

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Federal economic statement 2023

Posted on by Edixon

Authored by RSM Canada

Executive summary

On Nov. 21, 2023, the Minister of Finance, Chrystia Freeland, released Canada’s 2023 Fall Economic Statement (2023 Economic Statement). The Economic Statement introduces several new tax measures which focus on Canada’s plan for affordable housing and building a strong economy in the form of clean energy credits and addressing international tax gaps.

The Economic Statement also affirms the government’s intention to proceed with previously announced tax measures, including by providing clarifications to certain priority economic areas.

Economic statement 2023

Business tax measures

Clean hydrogen investment tax credit

The 2023 Economic Statement provides further details on the clean hydrogen investment tax credit (Clean Hydrogen ITC), originally proposed in the 2023 Federal Budget (Budget 2023), outlines key design elements of the credit, including eligible projects, credit rates and carbon intensity measurement. The federal government plans to continue reviewing low-carbon hydrogen production pathways leading up to Budget 2024.

Budget 2023 highlighted that the Clean Hydrogen ITC would provide support for clean ammonia production, offering a 15% credit rate with specific conditions. The 2023 Economic Statement extends eligibility of the credit to property converting clean hydrogen into ammonia, subject to sufficient production capacity, transportation feasibility and hydrogen sourcing criteria. The 2023 Economic Statement also addresses the conditions necessary for the inclusion of power purchase agreements and similar instruments for calculating project’s carbon intensity (CI). Eligibility is contingent on sourcing electricity from hydro-, solar- or wind-powered generation that:

  • first commenced production on or after March 28, 2023, and no more than one year before the initial CI assessment; and,
  • is located in the same province or territory and connected to the electricity grid of that province or territory. 

The Clean Hydrogen ITC’s positive environmental impact aligns with the federal sustainable development strategy, aiming to reduce greenhouse gas emissions by 40% to 45% below 2005 levels by 2030 and achieve net-zero emissions by 2050.

Clean Technology and Clean Electricity Investment Tax Credits

The 2022 Fall Economic Statement introduced a 30% refundable clean technology investment tax credit for eligible taxpayers investing in clean technology property between March 28, 2023 and 2035, subject to a phase out in 2034. Budget 2023 added a 15% refundable clean electricity investment tax credit for eligible property starting from Budget 2024 until 2034.

Notably, the 2023 Economic Statement extends the eligibility of these tax credits to encompass systems that support the generation of electricity, heat or a combination thereof, from waste biomass.

The expanded eligibility for the clean technology investment tax credit applies to property acquired on or after the day of the 2023 Economic Statement, as long as it has not been used before acquisition. For the clean electricity investment tax credit, eligibility starts from the Budget 2024 release date and extends to projects that have not commenced construction before March 28, 2023.

Exception on dividend received deduction by financial institutions

In Budget 2023, the government proposed to disallow financial institutions from claiming a deduction for dividends received on shares of other corporations resident in Canada where those shares are mark-to-market property. This measure is intended to better calculate the income of financial institutions from securities consistent with the purpose of the mark-to-market property rules.

The 2023 Economic Statement offers relief from the above amendments by allowing financial institutions to continue to claim the deduction on dividends received on “taxable preferred shares”. Financial institutions will need to review their holdings to fully understand the tax impact of losing this deduction on securities that do not qualify for the exemption.

These changes are proposed to apply to dividends received on or after Jan. 1, 2024.

Supporting the adoption of employee ownership trusts

First introduced in Budget 2022, employee ownership trusts (EOTs) serve as a mechanism to allow employees to purchase a business without requiring them to pay directly to acquire the shares of the business. EOTs also serve as a valuable option for owners planning business succession.

To further incentivize the use of EOTs, the 2023 Economic Statement expands on the proposals contained in Budget 2023. The government proposes to exempt the first $10 million in capital gains realized from the sale of a business to an EOT from taxation. This incentive will apply to the 2024 to 2026 tax years. Details on the exemption will be provided at a future date.

Concessional loans

When a taxpayer receives government assistance in the course of earning income from business or property, the amount of assistance may reduce the amount of related expenses, property costs or may result in a potential inclusion in the taxpayer’s overall income.

Historically, non-forgivable and concessional loans from public authorities were not considered government assistance, until a pivotal 2021 decision by the Tax Court of Canada. This ruling, upheld in 2022 by the Federal Court of Appeal, changed the treatment of concessional loans, considering their full principal amount as government assistance.

Addressing this shift, the 2023 Economic Statement proposes a crucial amendment to the Income Tax Act. The proposed change aims to exclude bona fide concessional loans with reasonable repayment terms from public authorities as government assistance. If enacted, this amendment will take effect on the day of the 2023 Economic Statement, signaling a swift government response to evolving tax law.

International tax measures

Underused Housing Tax

The Underused Housing Tax Act (UHTA) requires affected owners of residential property in Canada to file an annual return starting for the 2022 calendar year. Where the residential property is considered vacant or underused, the owner is required to pay an annual federal 1% tax. The implementation of the UHTA has caused significant confusion and most recently necessitated a second administrative extension to the filing and payment deadline regarding the 2022 calendar year. In particular, if affected owners file their returns and pay the underused housing tax for the 2022 calendar year by April 30, 2024 (previously extended to Oct. 31, 2023), the CRA will waive all penalties and interest otherwise applicable.

In light of feedback received on the UHTA, the 2023 Economic Statement proposes several amendments to the legislation. The UHTA was originally positioned in Budget 2021 as a tax on property owned by non-Canadian individuals and entities. Despite this intention, certain Canadian owners of residential property were also required to file returns and potentially pay tax. The amendments proposed in the 2023 Economic Statement will bring the UHTA closer in line with its original objective by expanding the definition of “excluded owner”. Excluded owners are not required to file a UHTA return or pay tax on their property. “Specified Canadian corporations”, partners of “specified Canadian partnerships” and trustees of “specified Canadian trusts” will now be considered excluded owners. The definitions of “specified Canadian partnership” and “specified Canadian trust” will also be expanded. These changes will apply for 2023 and subsequent calendar years.

The other proposed changes to the UHTA are:

  • Decreasing the minimum failure to file penalty from $5,000 for individuals and $10,000 for corporations to $1,000 and $2,000, respectively, for 2022 onwards;
  • Introducing an exception for residential properties held as a place of residence or lodging for employees in rural areas for 2023 onwards; and,
  • Exempting unitized (“condominiumized”) apartment buildings from the definition of “residential property” for 2022 onward, and limiting the “vacation property” exemption to only one residential property for a calendar year for 2024 onward, in addition to other technical changes alluded to but not described.

Canada’s intention to proceed with implementing global minimum tax

The 2023 Economic Statement reiterates Canada’s commitment to international efforts to reform corporate taxation, particularly through the implementation of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two, aimed at establishing a global minimum tax rate.

Canada intends to enact the Global Minimum Tax Act (GMTA) to implement Pillar Two of the inclusive framework, with an effective date after Dec. 31, 2023. Pillar Two (and the GMTA by extension) would establish a global minimum tax rate of 15% on the profits of large multinational corporations, regardless of where they maintain tax residency. Tax revenue is projected to exceed $3.1 billion by fiscal year 2029 from the Pillar Two international tax reform.

The 2023 Economic Statement also includes an exemption from the application of the GMTA for income from shipping companies to align with global treatment.

Indirect tax measures

Removing GST from new co-op rental housing

The federal government proposed on Sept. 14, 2023 to remove the goods and services tax (GST) from new purpose-built rental housing construction projects to incentivize the rapid construction of new homes. The federal government has also called on provinces to remove provincial sales taxes on rental property construction. Consistent with the federal government, Ontario plans to offer full HST rebates for long-term rental units, as previously announced in the 2023 Ontario Fall Economic Statement.

In the 2023 Economic Statement, co-operative housing corporations that provide long-term rental accommodation will also be eligible to benefit from the GST exemption, subject to additional conditions. The exemption will not apply to substantial renovations of existing residential properties to prevent the displacement of existing renters.

The GST exemption will apply to construction projects that are initiated between Sept. 14, 2023, and Dec. 31, 2030, and fully completed before 2036.

Other tax measures

Non-compliant short-term rentals

The Economic Statement outlines the federal government’s proactive measures to address the growing issue of non-compliant short-term rentals in major Canadian cities like Montréal, Toronto and Vancouver.

The federal government plans to deny income tax deductions for expenses related to earning short-term rental income, including interest expenses, in provinces and municipalities that have prohibited such rentals. This denial of deductions is also extended to cases where short-term rental operators are non-compliant with provincial or municipal licensing, permitting or registration requirements. These measures are set to take effect from Jan. 1, 2024.

Intention to proceed with previously announced measures

Subject to amendments resulting from public consultations and legislative processes, the government intends to proceed with previously announced tax measures. These measures include, but are not limited to:

  • The introduction of:
    • Hybrid mismatch arrangements rules;
    • Excessive interest and financing expenses limitations (EIFEL) regime and;
    • Substantive Canadian-controlled private corporations.
  • Amendments to:
    • Alternative minimum tax for high-income individuals;
    • Intergenerational business transfers;
    • General anti-avoidance rule and;
    • Information requirements for claiming input tax credits for GST/HST purposes, back from the 2021 Federal Budget. 

As some of these measures are slated to come into effect in 2024, middle market companies should consider proactive changes to ensure readiness for these new measures.

This article was written by Clara Pham, Daniel Mahne, Farryn Cohn, Sigita Bersenas, Cassandra Knapman, Olukayode Akinbosede, Elizabeth Ojesekhoba and originally appeared on 2023-11-21. Reprinted with permission from RSM Canada LLP.
© 2024 RSM Canada LLP. All rights reserved. https://rsmcanada.com/insights/tax-alerts/2023/federal-economic-statement-2023.html

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The information contained herein is general in nature and based on authorities that are subject to change. RSM Canada LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM Canada LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

Association and HST

Posted on by Edixon

In the tax world, association can have a significant impact on your income taxes, but it can also impact your GST/HST as well.   When it comes to having to register for GST/HST, the small supplier threshold of $30,000 (or $50,000 for public service bodies) applies to a company and its associates.  Association is defined in section 127 of the Excise Tax Act (ETA) and subsections 256 (1) to (6) of the Income Tax Act (ITA).  The rules of association for ITA purposes can be found at:  http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-256.html

When it comes to association and GST/HST, a common error is not factoring in all of the taxable sales of all associated parties when looking at the small supplier test.  Unlike the ITA definition of association, which applies to corporations only, the ETA extends this definition to apply to other persons (such as individuals).  It is common for an individual who controls a corporation to charge management fees or commercial rent to their corporation.  Assuming the corporation they control is not a small supplier, due to the association rules, these fees would be taxable for GST/HST.  Having the individual registered and charging for these services is often overlooked on the incorrect assumption they are not taxable if under $30,000 of taxable supplies.  Please note the appropriateness and income tax consequences of such management fees are beyond the scope of this article.

It should also be noted that, as a trust and a partnership is a person for GST/HST purposes, they should also be factored into association with any corporations with common ownership.

If you have a corporate group with transactions amongst all of the entities and shareholders, it would be prudent to have a GST/HST review done to ensure that all taxes are being charged appropriately.

CEBA REPAYMENT DEADLINE EXTENDED: Some Issues

Posted on by Edixon

On September 14, 2023, the Department of Finance provided details on extending the deadline for Canada Emergency Business Account (CEBA) repayments, including the following key elements:

  • the deadline to qualify for partial loan forgiveness (by paying the non-forgivable portion) has been extended from December 31, 2023, to January 18, 2024;
  • if a refinancing application is made with the financial institution that provided the CEBA loan by January 18, 2024, the deadline to qualify for partial loan forgiveness will be extended to March 28, 2024;
  • as of January 19, 2024, outstanding loans will convert to three-year term loans subject to a 5% annual interest rate regardless of whether refinancing is sought; and
  • the previous final repayment deadline of December 31, 2025, has been extended to December 31, 2026.

Financial institutions will contact CEBA loan holders directly regarding their loans. The above changes also apply to CEBA-equivalent lending through the Regional Relief and Recovery Fund.

ACTION ITEM: Ensure you fully understand the deadlines to avoid missing the partial loan forgiveness.