Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 23, 2020
2020-5424

Canada: Alberta Government announces new funding and support measures

Executive summary

On 18 March 2020, the Alberta Government announced new funding and supportive measures to provide immediate financial relief to Albertans and employers. The Premier stated that “This is an initial set of measures, and more will follow in the days to come.” This is in addition to supplementary financial support previously announced for charitable and non-profit groups to support seniors and other vulnerable populations. These measures are also in addition to those announced in the Federal Government’s 18 March 2020 Economic Response Plan – see EY Global Tax Alert, Canada announces Economic Response Plan, dated 23 March 2020 for more details on the federal Economic Response Plan.

A summary of the new measures to support workers and businesses, as well as tax measures, is outlined below.

Detailed discussion

Help for Albertans and workers

Emergency isolation support

The Alberta Government has budgeted a CA$50 million1 temporary program to help bridge the gap between federal emergency payments that begin in April. This will apply to working Albertans who do not have another source of compensation (including Employment Insurance) and are required to self-isolate, as well as sole caregivers of a dependent who must self-isolate. Eligible individuals will be able to apply online next week to receive a payment of $1,146 ($573 per week).

Utility payment holiday

Electricity and natural gas bill payments can be deferred for the next 90 days. This applies to residential, farm and small commercial customers of any service provider.

Student loans repayment holiday

A six-month, interest-free pause on student loan repayments will begin 30 March 2020 for those who need it. No application is necessary.

Job protections

All employees, regardless of the amount of time worked, will have their jobs protected if they are required to self-isolate or are caring for a dependent that is required to self-isolate. No medical note is required.

Help for employers

Many Alberta employers, particularly small businesses, are facing extraordinary financial stresses and will need support with short-term cash flow. The Government’s initial solution is through deferred corporate tax payments.

Corporate income tax changes

Beginning 19 March, corporate income tax balances and installment payments can be deferred until 31 August 2020. Presumably this will be adjusted to 1 September 2020 to match the date of the federal deferrals. It is estimated that this measure will provide Alberta businesses with access to $1.5 billion to help them with their short-term cash flow challenges.

Access to credit

Personal customers of ATB Financial can apply to have their loans, lines of credit and mortgage payments deferred for up to six months.

Similarly, small business customers of ATB Financial can apply for deferrals on loans and lines of credit, but can also apply for additional working capital offerings.

Other businesses and agriculture customers should contact ATB Financial as some solutions are being considered for them as well.

For provincially regulated credit unions, personal and business members will be offered various financial relief solutions to ease their burdens on a case-by-case basis.

Endnote

  1. Currency references in this Alert are to the CA$.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Calgary
Ernst & Young LLP (Canada), Vancouver
Ernst & Young LLP (Canada), Edmonton

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more