The deadline for landowners to apply for CECRA for small businesses was September 30, 2020. For homeowners who have already applied, the reporting deadline for additional funding is October 30, 2020. Note that in cases where the rent was collected by the tenant before receiving the authorization of the program, the owner of the property is required to reimburse the rent paid by the Little Tenant for the corresponding period. However, if the landlord and tenant agree, the owner of the land can give the tenant a credit for the rent for a month to come. On June 18, 2020, amendments to the Commercial Tenancies Act to implement a moratorium on evictions in Ontario came into effect for most commercial leases. The amendments prohibit certain actions of a commercial lender who is entitled to CECRA assistance for a commercial tenant but has not chosen to participate in the program. In particular, a lessor who participates in a commercial lease agreement subject to the amendments is prohibited from bringing an action or filing a property application, as well as exercising his right to reintroduce or seize goods or cats as an emergency for lease arrears. This moratorium applied until August 31, 2020 and was retroactive for the period from May 1, 2020 to June 17, 2020. With the extension of the CECRA program until the end of September, Ontario extended the moratorium until October 30, 2020.
Current status: Quebec has not imposed a moratorium. Length not arms Tenants – landlords and tenants who are not on arm length will be included in the program as long as there was a valid and enforceable lease and the rent is below the rental contract at market prices. Landowners are required to use funds received from CECRA for small businesses to compensate affected tenants for rent paid on more than 25% of the rent due during the eligible period (unless the tenant chooses to apply this amount for future rents). While tenant reimbursement is a top priority, landlords are also allowed to apply these funds to expenses and expenses directly related to the property, including owner financing and maintenance and repair obligations. If you are a business owner and would like to learn more about how CECRA could help you pay rental expenses to your small business owners, contact your BDO advisor. Periodic monthly payments of other additional rents to be paid to the landlord, such. B that maintenance costs, repairs, procurement costs, administrative costs, etc. (in a net lease) Current situation: B.C. moratorium provisions ended on October 1, 2020. CMHC`s website provides that the amount of the tradable loan is exempt from the turnover tax (GST and HST). In addition, GST and HST are also excluded from determining the gross amount of rent, which means that monthly rents are calculated before taxes on current turnover. In addition, homeowners are not required to collect GST/HST for payments they have received from CMHC under the CECRA for Small Businesses program.
While the Canadian Revenue Agency (CRA) has not yet provided any indication of this, If GST/HST tenants` landowners are required to collect the total amount of the monthly rent, it is expected that, if the landlord issues a credit equivalent to the rent reduction granted to the tenant, the landlord is only required to collect GST/HST from tenants on the amount of rent paid by the tenant during the period during which the rental charge is granted. The official guidelines are expected to be published by the rating agency in the coming weeks.