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June 1, 2021 update

Information is accurate as at 3:00 p.m. EDT. Information may be affected by subsequent announcements.

Links to government announcements follow at the end of the update.

Tax updates:

  • Newfoundland and Labrador - 2021-22 budget released: The Newfoundland and Labrador government released its budget for 2021-22. The province is forecasting a deficit of $826 million for 2021-22, with a projected return to a balanced budget in 2026-27. The budget does not change corporate income tax rates, but does: (i) increase personal income tax rates on taxable incomes over $135,973, starting 2022; and (ii) introduce a refundable physical activity tax credit for families. For more information, see our Tax Insights “2021 Newfoundland and Labrador budget: Tax highlights.” 

Other updates: 

  • Manitoba - State of emergency extended: Manitoba has extended its state of emergency to June 28, 2021.

  • New Brunswick - Reopening plan: The New Brunswick government announced its three‑phase plan to safely reopen the province, with target dates based on anticipated vaccination rates and low COVID-19 hospitalization numbers. The first phase is expected to start June 7, 2021, if at least 75% of New Brunswickers 12 and older have received their first vaccine dose, hospitalizations remain low and all health zones remain at the Yellow alert level. In this phase: (i) isolation and COVID-19 testing requirements for cross-border travel will be eased; (ii) contact with all family and friends will be permitted and restrictions for indoor and outdoor gatherings will be loosened; (iii) organized sporting activities will be allowed, but only to teams based in Newfoundland and Labrador, Prince Edward Island, Avignon and Témiscouata; and (iv) faith gatherings at a maximum 50% venue capacity will be permitted. All other restrictions will remain in place, including the requirement for travel registration and the use of masks, based on a health zone’s alert level. 

  • New Brunswick - Small Business Recovery Grant (SBRG) program enhanced and extended: New Brunswick is launching phase 2 of the SBRG program, which applies to losses incurred starting April 1, 2021. Businesses that previously accessed the grant under phase 1 remain eligible to apply. Eligible businesses can apply for a non-repayable grant of up to $5,000 when subject to elevated public health measures and restrictions under Yellow (new in phase 2), Orange, Red or Lockdown Public Health levels. Other enhancements in phase 2 include: (i) providing a one-time subsidy of up to $300 (within the $5,000) to reimburse costs incurred to prepare the application; and (ii) reducing the 30% year-over-year drop in revenue threshold to 20% when compared to the same month in 2019. The program will remain open to eligible businesses until New Brunswick reaches the Green level of recovery. Applications will be accepted beginning June 1, 2021.

  • Nova Scotia - State of emergency extended: Nova Scotia has extended its state of emergency to June 13, 2021.

  • Ontario - Funding for tourism industry: The federal government announced $1 million of funding to FedDev Ontario, which will be used by Ontario's Highlands Tourism Organization to provide tourism-dependent businesses in Ontario's Highlands with up to $20,000 in non‑repayable contributions to support costs associated with adapting and eventually reopening, and technology and digitization. 

  • Prince Edward Island - Reopening plan: The Prince Edward Island government announced its five step Moving Forward plan to safely reopen the province, which has a minimum of three weeks between each step. Moving Forward Step 1, which is projected for June 6, 2021, will (i) increase personal gatherings to up to 20 people indoors and outdoors; (ii) permit weddings and funerals (maximum 150 people, in cohorts of 50) hosted by a recognized business or organization; (iii) allow special occasion events (e.g., backyard weddings, anniversary parties) hosted by individuals with up to 50 people with a reviewed operational plan; and (iv) permit restaurants to have a table size of up to 20. 

  • Yukon - State of emergency extended: Yukon has extended its state of emergency for up to 90 days (to August 25, 2021).

Links to government announcements:

Contact us

Dean Landry

National Tax Leader, Toronto, PwC Canada

+1 416 815 5090

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Shawn Reain

National Tax Markets Lead, Compliance.Transformed leader, Partner, Calgary, PwC Canada

+1 403 509 6373

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Kent Smith

Partner, Ottawa, PwC Canada

+1 613 755 8742

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Éric Labelle, LL.L.

Greater Montreal Tax Leader, Montreal, PwC Canada

+1 514 205 5063

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Julien Lassonde

Partner, PwC Associates, National Incentives Leader, Montreal, PwC Canada

+1 418 997 4019

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Liam Fitzgerald

Competency, Innovation & Legal Tax Leader, Toronto, PwC Canada

+1 416 869 2601

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