2 posts

New economic stimulus and clarifications on the “old” one.

It has been a week since our last post. During this week the government announced a number of new economic measures aimed at softening the economic impact of COVID-19. Bill C-13 which contains measures discussed in our prior post was passed by the parliament on March 25. Here are our thoughts, observations and clarifications. This is by no measure a complete summary as we only focusing on programs about which received most questions.  75% Wage Subsidy This measure officially known as The Canada Emergency Wage Subsidy has generated lots of excitement.  The details of the program were announced on April 1. Here is a quick summary:   The subsidy applies a rate of 75% of the first $58,700 normally earned by employees. This amounts to up to a maximum of $847 per week.  The program will be in place for a 12-week period, from March 15 to June 6, 2020.  To qualify a […]

Choosing a Fiscal Year End

Working with many startups, MCN is often asked by its client to suggest fiscal year ends for companies. The CRA allows companies to choose any date as a fiscal year end, as long as it falls within 53 weeks of the date of incorporation. We typically recommend going with a fiscal year end that falls on July 31, unless there are particular circumstances that make a different date a better choice. There are several reasons why we make this recommendation: 1. A large percentage of companies have fiscal year ends that coincide with the calendar year end (i.e. December 31). December 31 is not only the most popular corporate fiscal year end, it is also the fiscal year end for all individual tax payers, sole proprietorships, as well as for most of the partnerships. Generally, the latter three cannot choose a different fiscal year end. This means that the next […]