Business Closures: More after March 28?

Evelyn Jacks

The final repayment deadline for outstanding CEBA loans is today, March 28.  This is the last opportunity to preserve any of the up to $20,000 in loan forgiveness.  Those business owners who failed to arrange financing for repayment must pay up the entire loan plus interest.  Will that push more businesses to close?  If so, it would add to the over 2200 business which closed their doors in December of 2023, for a total of 8 months of active business closures in 2023, according to Statistics Canada.  Check out the provincial trends:

What this means to tax and financial advisors this tax season is more filing variations will occur.  Be sure to shore up your knowledge on the accounting for business closures, and filing returns in the case of bankruptcy or insolvency.

Your key resource for this is Evergreen Explanatory Notes: available as part of the Tax Tip Toolkit exclusively from Knowledge Bureau.   Register now for this invaluable resource, which includes explanations and links to government publications and forms you’ll need to account for business closures properly.