Weigh In: Is Tax Relief the Right Answer for the Times?

Business owners are struggling and despite the announcement of a new loan program yesterday, is more indebtedness the help that business owners really want at this time?

The new  Highly Affected Sectors Credit Availability Program (HASCAP) will offer government guaranteed, low interest loans of up to $1 Million to businesses hit hard by the lingering pandemic.  Eligible businesses can apply on February 1 at their financial institutions.  The business must show a year-over-year revenue decline of at least 50% in three months, within 8 months prior to loan application.  They must also have previously applied for either the Canada Emergency Wage Subsidy or Canada Emergency Rent Subsidy.  There is no forgivable portion for these new loans.

But is this the right solution for the times?  The Canadian Federation of Independent Business for example has found that in its research, one in six businesses is currently considering permanent closure. Canada could lose as many as a quarter of its small businesses by the time the pandemic ends, it says.   

Perhaps a better solution, with very little red tape, is to waive tax, penalty and interest relief to those businesses.  What’s your take? 

There's still time to provide your feedback on this month's poll: "Given the financial stress people are under during the second wave, should governments suspend audit activities and waive penalties and interest in 2021?"