Free consult & free copy of book

E-Myth – “Why most small businesses don’t work & what to do about it”

Contact Us


Most 5 star CPA Google reviews in Canada

Read Reviews

Chartered Professional Accountants E Myth

1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

Helping Canadian businesses beat the odds!

Edmonton Business Consultant | Landlords & Toilet Paper Price Gougers

Right here. This is the actual eligibility. Uh, it’s basically the declaration that you are going to have to sign off on in the online portal and whether you do it via phone or the online portal, this is the declaration that you’re making. So don’t worry about what else is on the website in this corner, that corner that may be outdated or maybe new, you know, I’m going to put 99% of my, uh, you know, decision-making anyways, on what is the actual declaration that I’m, you know, I’m saying is true.

I can see you a whole lot with these two. Uh, I can be or B because it’s mad.

Hi. Thanks for tuning in for another episode of ASP Sperl CPA. Today, we are talking about both the C E R B application here with Trevor from inspire method, Trevor. Yes, we got more rules today. More rules are ready to go or things coming down the pipe. That’s right. Excited to tell everyone about it. So what are the questions people should be asking? The first question people should ask is, has EDI previously been available to most self employed individuals? Generally? No. I mean, you had to opt in, but it wasn’t really a financially beneficial thing to do. Um, but so generally this is unchartered territory for most self-employed people that they’re, you know, thinking to themselves I’ve never been eligible for EDI. You are now probably, probably. All right. So what is the C E R B soul? The acronym is S stands for the Canadian or emergency response benefit.

So C E R B being Canadian emergency response benefit. Okay. Uh, question number three. Is, should you rely on press conferences to determine your eligibility? No. We have been through this a couple of times on almost every single issue. You can sit there and watch the prime minister word for word in his press conferences. And then very likely when the fine print gets released, it will be different than what he says in the press conferences. So do not rely on press conferences to decide if you should apply for this CRV, or if you shouldn’t apply to the CRV, don’t do it based on press conferences. Good idea. Um, are mainstream media articles, giving misinformation? Yes. Um, you know, obviously there’s, there’s some, uh, media articles that are almost inherently false anyways, but even the good ones who were reporting it accurately, you remember their report, they can only report as accurately as it’s delivered in the press conference, which we have found to be unreliable.

So, uh, you can’t, it doesn’t matter if it’s from, you know, financial polls, global mail, national post Edmonton journal, Calgary Herald. It doesn’t matter. It’s a mainstream reputable source. Remember there’s been differences between what’s said in the press conferences and what actually makes it onto the website. Yeah. A hundred percent always verify trust, but verify. Yes. Is there already outdated information on the government of Canada website now? Yes. Now we’re going into a different round before previous videos. I was telling people, Hey, just make sure it’s on the government website. But at this point, things have been changed. Things have been released and changed. So now at this point, even on the government website, you have to realize what was old information and what is new information. So, uh, even on the government of what government of Canada website, you have to have your head up to make sure you’re looking at the most recent part, because it could be outdated.

Yeah. It’s crazy how fast things change and how quickly they become outdated. So what is the main document you recommend relying on it right here. This is the actual eligibility. Uh, it’s basically the declaration that you are going to have to sign off on in the online portal and whether you do it via phone or the online portal, this is the declaration that you’re making. So don’t worry about what else is on the website in this corner, that corner that may be outdated or maybe new, you know, I’m going to put 99% of my, uh, you know, decision-making anyways, on what is the actual declaration that I’m, you know, I’m saying is true. This is what matters. So, you know, this is what we should learn in detail. Okay. So the next question I’ve got here, what does it say regarding applying if you are on or already applied for EIS?

So I’ll read it verbatim. This is rate from the declaration. It’s not that long either. We don’t have pages and pages to read here. It’s just over one page really. And it says you are not entitled to receive the Canada emergency response benefit CRB from the Canada revenue agency, CRA while you are receiving employment insurance benefits or the C E R B from service Canada, if you have already submitted an application with service Canada for EDI, or the C E R B, you cannot apply for this benefit through CRA. So if you’re receiving EDI from some other source, uh, you are not eligible, uh, for the CRB. Yeah. That’s fair. No, double-dipping right. Which makes sense basically exclude every business owner anyways, because they weren’t eligible for AI. Correct. So this is really for business owners and people who don’t qualify for AI benefits, right?

What are some of the other requirements? So the other requirements, so I’ll just back up. Even some people who wouldn’t qualify for EA better are not business owners. It’s a little bit different. They’ll cough and qualify for the CRV. So let’s look at it cause it’s really, really broad. So the other qualifications are you reside in Canada, pretty straight forward, and you reside in Canada or you don’t, you are 15 years of age or older at the time of application, pretty straight forward. There’s no way to misconstrue that. Now let’s get into one. This is a meaty sentence. And it’s a really important sentence. It says for your first C E R B application, you have stopped or will stop working, have stopped or will stop working due to reasons related to COVID-19. And for at least 14 consecutive days of the four week period for which you are applying, you will not be receiving employment, income, self employment, income, or provincial, or federal benefits related to maternity or paternity leave.

Okay. That’s big meaty sentence, you know, word for word, you know, it’s it’s have stopped working or will stop working. And then it talks about income. Okay. So a couple other ones moving forward, it says you have not quit your job voluntarily. Okay. You have not applied for, nor are you receiving CE R B or EDI benefits from service Canada for the same eligibility period. So you can double dip there. Okay. But if you didn’t qualify for AI, this could be open to you to provide you meet all those other qualifications and you have earned a minimum of $5,000 income within the last 12 months or so in the last 12 months or in 2019 from one or more of the following sources, employment, income, self employment, income, or provincial, or federal benefits related to maternity or paternity leave. Okay. Um, that’s really the qualifications.

They’re not that long. They’re all on one page. Yeah. There’s lots of little nooks and crannies on the website, but at the end of the day, when you get to the declaration that you got to make, this is all you’re declaring. So this is what a hundred we’re going to put. 99% of my stock into is this year. You have to have a little bit of a crystal ball for some of that, which is unfortunate, but we’ll get into that. What does it say regarding non-self employed T4 income? So, I mean, if your T4 income has been terminated, that’s fine. But if you’re still getting a regular check here, here’s, here’s a problem. And it’s a bit of a weakness in it is if your T four income has been reduced significantly, but you are still getting a regular check every two weeks. You’re not going to go the 14 days, your hours could have gone from 40 hours to four hours.

You will not qualify for CRB. Now that doesn’t mean you wouldn’t qualify for EDI. That’s a different discussion altogether, but reduced hours, no go teat, regular T four hours completely eliminated. CRB could be for you, or it could be for a regular Edmonton Business Consultant owner. Okay. At what point do you care about subsequent C E R B application requirements? So there’s a hole there there’s like another paragraph. I did not read to you on the subsequent CERV applications, because I just don’t care about it at this point, because what I know is parliament has been recalled to vote on all this stuff. So I only care about the application period at hand here. So I only care about the March 15 to April 11th, you know, application period. Um, I don’t care about the subsequent ones at this point because everything has changed so much. Why would I expect that this is going to be consistent for 16 weeks?

I fully expect this to change. Let’s just figure out what to do in month. One first. We’ll figure out what to do a month, two after don’t put a lot of stock into what they’re telling you, it’s going to look like yeah. A hundred percent. Uh, what is the only time period that matters at this point? Yeah. So it’s right here. When we’re talking about all this, it’s you, you highlighted on your County, it’s March 15th to April 11th. That is the initial application period. That’s what the 14 day test applies to. Don’t worry about the subsequent periods yet, because I fully expect, by the time we get to the subsequent period, there might be a full set of rules. You can memorize this one, if you want. When I have a feeling, it’ll be a different one when you get there. So, okay. Now, uh, does dividend income count as self-employed income?

Yes. There’s other literature on the CRA website saying that dividend income will count as self-employed ECOS. Remember one of the qualifications is you have to have at least $5,000 of self-employed income, uh, either in 2019 or in the 12 months leading up to this. So basically you have to have $5,000 of income from January 1st, 2019 until you know, the beginning of the period, March 15th. Okay. Now, uh, why would you put more stock on the wording of income rather than work? So work is not really defined anywhere, right? Yeah. Um, and it gets a little bit hokey. It’s not like work is a definition in the income tax act. You know, work is like, for example, what a, someone said, I’m, my work has completely shut down. I own a restaurant I’m not allowed to open, even if I wanted to, I want to a fitness center, but I log in and check my email.

I look at the social media account to see if anybody’s posted on it. My working to me working income are the same thing. And work is a soft definition of income. I mean, really, I think work is the ability to derive income. If you’re just doing something to be busy or, you know, your shop is shut down, but you drive by to see if someone has broken in. I don’t think that’s work. Um, you know, uh, CRA is interpretation could be different from mine, but I think you can see how I think work is the ability to earn income. So I’m going to put more stock in the income restrictions in here because that’s a more clear and concrete definition. Yeah. And I mean, entrepreneur has always put in more work than the income that they receive January. Uh, next question. Uh, when do your corporate clients normally declare income?

So corporate clients and Spurling associates with our tax planning, normally we’re only declaring income a lot of times once a year, we’re declaring a dividend once a year. A lot of times we’re declaring a small salary, uh, even once per year. So there’s a big, you know, percentage of our clients where even if no Corona virus type thing had hit where the likelihood that they’re declaring any income in the period from, you know, we’re only talking about March 15th to April 11, 20, 20, the likelihood that they were going to declare income in that period is very, very small. Like unless they had a March year end, in which case, even if they did it on March year and we have the ability to declare that income before or after the year end. So, you know, often a lot of corporate clients, especially the way we organize it to they’re only declaring income once per year.

Yeah. That makes a lot of sense. So based on this, how broad is the criteria for getting this CRB hugely broad? I mean, let’s, let’s, let’s look at it. It’s, it’s, um, you know, you have stopped or will stop working. You haven’t, you don’t have to. And, and that’s that crystal ball we’re talking to us and work, what is work? What is work to me? It relates on the ability to derive income so that you have the ability to derive income, um, you know, for, for, for a four week period for which you are applying, you will not be receiving employment, income, self employment, income, or federal provincial, or federal maternity benefits. Okay. So really we’re focused on primary for our clients and self employment income, cause they don’t have regular employment income. It’s the T4 income that apply there. They’re getting from their own corporation.

So we’re talking like it’s extremely broad, you know, who has not been engaged in really, really significant stay at home procedures as per our prime minister is recommending everyone, stay at home, stay at home. Um, so are you really deriving income? Is there a 14 day period in there, um, where you stopped working and you’re not deriving income, keep in mind, income is likely only declared for a lot of corporate clients once a year. What’s the chances of was that period, right? Yeah. It’s very broad. Right. So it’s this big interpretation out there that all lot of people are going to qualify. Yeah. So the next question is what happens to people on EDI starting Edmonton Business Consultant and how could that be irrelevant? So I think they’re going to narrow that a little bit, my experience on people who start businesses while they’re on AI, won’t be just, did you declare income in that magical period?

It’s could you have cleared income in that period? Right. Um, so there is a little bit of maneuvering on, was it, you know, practical, you know, this is completely unchartered territory and, um, and in a way, making an apples to oranges comparison, but it’s, it’s the orange that looks most like this Apple, I guess. Uh, and so they, they do tend to go a step further for those people who start Edmonton Business Consultant while they’re collecting EDI. They don’t just look at, did they declare salary or dividends in that point, they look at, could they have declared salary dividends at that point and would be a very, you know, realistic interpretation, uh, that could be, uh, you know, applied here. Uh, in retrospect, I suppose. Yeah. Now last question we have, is there a risk that people will have to pay this back? Yes, I do believe there is a risk that you’re going to have to pay it back.

So anybody applying, who’s a Edmonton Business Consultant owner who has income. You can’t be thinking, Hey, I got this money. I’m definitely going to get it. I can take it to the bank and there’s no way they’re ever going to claw back. That’s just not how any taxation, uh, issue works. So, um, you know, it’s my view that you, you know, you, you, you miss a hundred percent of the shots you don’t take. Uh, the, for sure. So you’re definitely not getting it if you don’t apply. Um, but if you do apply, there is a risk. And like I said, it comes down to what that definitional work, which is murky. What’s that definition of income, which is a little more concrete and it has to be argued in a 14 day period. Keep in mind, it’s very easy to make, you know, for any small business to look at, did it earn income in any 14 day period?

We never filed anything for small Edmonton Business Consultant on a 14 day period. Right. Um, so that’s going to be a bit subjective, but I know from experience in dealing with business owners who start businesses while they’re on EDI, they’ll look at, could you have realistically declared income from them? So that could come up as well, too. Um, but at that point, at this point, like I said, we’re going to miss a hundred percent of the shots we don’t take. So we have to look at, could we potentially are we, we can’t lie on this application, but you know, the interpretation of it, you know, the, it is, you know, subject to some interpretation for sure. Yeah. Um, but either way, this is the document. Don’t listen to the news conferences. Don’t look at the little flow charts that your friends have sent you on Facebook. The end of the day, this is all you’re signing up for is right here.

You’re declaring this. And if you declare affirmative to this, they’re going to send you a check for $2,000. Keep in mind, there could be, the interpretation can be clarified at a later date and you might have to pay it. That’s right. That’s what we have for you here today. Um, regarding the CERV Canada emergency response benefit and making that application, uh, we’re gonna have more coming up in regards to helping people navigate around the wage subsidies 10% and 75% versus, you know, potentially doing the, how it ties, how that also ties in for the CRB, both for the Edmonton Business Consultant owner and potentially their employees as well. So thanks very much. And look forward to talking with you again soon. Thank you.