- But just a couple for businesses that I think people might find of interest. The first one, and it is getting an awful lot of press, is that wage subsidy program that is going to provide all businesses who have had a decrease in their sales by at least 30% to take advantage of this particular subsidy. And so it's going to run for a 14-week period, from retroactive to March the 15th to June the 20th. It's basically going to cover up to 75% of approximately the first $58,000 of wages that is paid to an employee annually. So it amounts to about $847 per week. And there are more details expected to come in the days ahead of us.
The next one, and this one was announced just recently, is the new Canada Emergency Business Account. And that's the one that is a new loan program for small businesses, and also not-for-profits. And it's a loan of up to $40,000 that really helps them cover some of their operating costs during this time of the reduced sales and such due to the COVID-19. And what they've added in with this one is they said, if that balance is paid back by December of 2022, the business is going to get a forgiveness of 25% of that loan, so up to $10,000.
A couple of other things for corporations and businesses. They've got the deferral again of their GST remittances until June the 30th. And which installments or remittances are going to be deferred in terms of which month is going to depend on what type of filer they are. But businesses have to remember, so they've got the deferral of their HST remittances, they've got the deferral of their corporate income taxes payable, as well. And those can be deferred until September the 1st.
They are deferrals, and so they are going to have to remember that this is all going to come to roost, and they're going to have to have the cash flow necessary at that time to make the payments on the due dates. Otherwise, they are going to be subject to interest charges, that sort of thing. And the last one is they do have the extension, as well, to defer filing their corporate tax returns. So any return that was due after March the 18th is going to be due then until June the 1st. But one thing they haven't extended, and that is the due date for the filing of the HST/GST returns. That still stays at what the original dates are.
- Georgia, I want to shift to you a bit, if I could. One of the things that's hard with a lot of these businesses, lots of relief available, but they may not be able to fulfill a lot of their contracts right now. And you know, you could be in the process of maybe doing a major transaction, and somebody walks away. So what should business owners be thinking about for those kinds of circumstances?
- That's true. The cancellation of contracts, whether they're real estate deals or service contracts or the purchase of goods, is a really big problem right now. First and foremost, we have to remember, though, that the law is not being suspended during this pandemic. You still have to adhere as best you can to your contractual obligations. And furthermore, look to the contract, because usually, there are cancellation terms in there as to what one person's obligations or responsibilities are if they do want to cancel. So it might be that you forfeit your deposit or there is some kind of a penalty.
Real estate transactions are a little bit even more stringent. Usually, if a buyer wants to walk away from a real estate transaction, they do forfeit the deposit. If the seller wants to walk away, there is a legal remedy called substantial performance, which requires the seller to go through with the deal. There may also be consequences-- let's say, for example, you walk away from a real estate deal, and the seller then has to sell their property at a lower price. You, the buyer that walked away, might end up having to compensate the seller for that loss of profit.
So the most important thing I think I have to say under these circumstances is, where you can adhere to the contract, maybe be creative, do that. If you can say, all right, I have to cancel this order, but as soon as we're through this, I promise the next three orders will come to you, that will help. Otherwise, get in touch with your lawyer, because one of the most unfortunate things that's going to happen as a result of the pandemic is probably there's going to be a lot of litigation with respect to canceled contracts.
And your lawyer will be able to tell you what you need to put in place in order to show that you did your best to mitigate, in other words diminish, any damage from the cancellation. So what evidence, what notes, what acts should you be doing so that someday, if the situation does go to litigation, you can at least have as much in place to show your side of things as possible.