QUEBEC ANNOUNCES 2.5 BILLION BILLION BILLION IN SUPPORT FOR BUSINESSES AND HARMONISES ITS TAX PAYMENT MEASURES WITH THE FEDERAL SYSTEM

Dear Madam,

Dear Sir

The provincial government today announced financial assistance of $2.5 billion for companies affected by COVID-19, via Investissement Québec. It also announced that it was postponing

the payment of certain amounts payable under various tax provisions in order to harmonise the payment date with that announced by the federal government yesterday.

Don't hesitate to contact one of Mallette's tax specialists or partners in your region among our 30 offices for more information: mallette.ca/nous-joindre

‍

PROGRAMME D'ACTION CONCERTÉE TEMPORAIRE POUR LES ENTREPRISES

• Investissement Québec will provide financial assistance to companies affected by COVID-19. All sectors of activity are eligible with the exception of the following activities:

• The production or distribution of weapons

• Gambling and gambling, combat sports, racing or other similar activities

• The production, sale and services related to the consumption of tobacco or drugs with the exception of projects involving pharmaceutical-grade products licensed by

• Health Canada with DIN, or their ingredients, and R&D projects with a licence

• from Health Canada

• Any activity whose primary purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, advocacy, etc.)

• Any other activity that would be of a nature to undermine morality

Eligible companies must meet the following criteria:

• Companies operating in Quebec, including cooperatives and other social economy enterprises that carry out commercial activities

• Are in a precarious situation and experiencing temporary difficulties as a result of COVID-19

• Demonstrate that their financial structure offers the prospect of profitability

• .

Each application will be examined on a case-by-case basis by Investissement Québec. The company must demonstrate temporary liquidity problems caused by :

• A raw material or product supply problem

• An impossibility or substantial reduction in the delivery of products or goods

The financial assistance will take the following form:

• Minimum financial assistance of $50,000 with no upper limits

• Assistance will primarily be analysed in the form of a loan guarantee, but

• Investissement Québec may make direct loans in certain cases

• Investissement Québec aims to work with financial institutions and the federal government to share financial risks

• Refinancing of existing loans is excluded

• Aid may support working capital

• Interest rates will be competitive

• .

Since March 12, Investissement Québec has already received 600 applications for financial assistance, which are currently under review.

HARMONISATION OF THE DATE OF INCOME TAX PAYMENTS WITH THAT OF THE FEDERAL GOVERNMENT

PAYMENT TERMS FOR COMPANIES

Companies with a balance of provincial tax for 2019 due on or after 18 March 2020 now have until 1 September 2020 to make the payment.

For information purposes, the companies concerned are those whose financial year ends between 18 January and 30 June 2020.

‍

Provincial instalments for 2020 due between 17 March 2020 and 31 August 2020 will also be deferred until 1 September 2020.

‍

No measures have been announced concerning deductions at source or GST/QST rebates.

‍

PAYMENT DEADLINES FOR INDIVIDUALS

Individuals whose balance of tax from their 2019 provincial income tax return is due no later than 30 April 2020 will have until 1 September 2020.

For trusts whose provincial tax balance is due on or before 30 March 2020, payment may also be made on 1 September 2020.  

Payment of provincial instalments for individuals has also been postponed until 1 September 2020.

‍

‍

erratum: ACCEESS TO CREDIT FOR businesses

The special bulletin sent out yesterday indicated that this programme was administered by the Bank of Canada.

Instead, it is administered by the Business Development Bank of Canada.

Thank you for your time.

‍

Find out more