Weekly Digest – 27 April 2022
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Economic Report to be Released on Friday
Watch out for Statistics Canada’s report on its reading for the gross domestic product for February on Friday. The agency’s initial estimate suggested the economy grew 0.8%, after a 0.2% gain in January.
New Innovation Agency
The government has announced that it will invest $1 billion over the next five years to create a funding agency focused on innovation in science and technology. The agency will be modelled on innovation agencies in Finland and Israel.
Additional Canada Business Corporation Act Regulations
In 2021, the government proposed regulations that would change the director election process for certain corporations established under the Canada Business Corporations Act. These regulations are scheduled to come into force on August 31 and will be in place for the 2023 annual meeting season for many corporations. Once implemented, these regulations will require:
- annual board member elections
- individual voting
- voting “for” or “against” each nominee
- majority voting
- and other administrative updates
You can learn more about it here.
Government Invests in Labour Mobility
The government introduces the new Labour Mobility Deduction, which would provide tax recognition on up to $4,000 per year in eligible travel and temporary relocation expenses to eligible tradespersons and apprentices. While further details will be announced at a later date, this is intended to boost skilled trades.
$3.6 Million Government Investment to Support Canada Beef
The government announced an investment of up to $3.6 million to ensure the beef industry has the necessary resources to seize new export opportunities. This funding will be used for initiatives that will increase trust in Canada’s beef sector and build stronger relationships with global trading partners.
Spending Up by 35.63% More Than Pre-COVID Levels Despite Inflation
Based on the latest Consumer Spending Tracker from the Royal Bank of Canada, it was found that Canadians are spending 35.63% more per week than they were before the pandemic hit over two years ago, despite the rising costs of goods due to inflation. Pent-up demand for goods and services is continuing to increase household spending, as more Canadians take advantage of eased COVID-19 restrictions.
Pandemic Support for Commercial Tenants
Businesses, non-profit organisations, and charities who have seen a drop in revenue during the pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses through one of the following:
Tourism and Hospitality Recovery Program (THRP) – Rent (Effective: Until 7 May 2022)
Hardest-Hit Business Recovery Program (HHBRP) – Rent (Effective: Until 7 May 2022)
COVID-Business Aid Loan Repayment Extended to 2023
Originally, if claimants repaid the balance of their Canada Emergency Business Account loan on or before the end of 2022, the government planned to forgive up to one-third of their loan. Now, eligible businesses “in good standing,” will have until 31 December 2023 to repay and be eligible for up to $20,000 of debt forgiveness.
COVID-19 Recovery Programs
The government is taking immediate action to support Canadians and businesses facing hardship due to the COVID-19 pandemic. You will find support for individuals, businesses, sectors, communities, and other measures here.
Ontario Extends Paid Sick Leave Program Into 2022
Labour Minister Monte McNaughton is extending the pandemic paid sick leave to 31 July. Originally, the provincial program was supposed to wrap up on 31 December. However, with the more contagious Omicron variant, the Labour Minister announced that it would continue.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.