May 29, 2020
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May 29, 2020

Your CFA Daily Update on COVID-19

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NFI Offer

Franchisor Revenues have been impacted by Gov't Lockdowns

NFI is helping CFA members save on Franchise sales overhead. Many leases will need to be restructured for franchisees to survive, and Operations Manuals need updating to meet COVID-19 Protocols.

FIND OUT MORE

Upcoming Tax Filing Deadlines

Individuals

  • Filing date for 2019 tax year: June 1, 2020
  • Payment date for 2019 tax year: September 1, 2020

Self-employed and their spouse or common law partner

  • Filing date for current tax year: June 15, 2020
  • Payment date for current tax year: September 1, 2020

Corporations

  • Filing date for 2019 tax year:
    • June 1, 2020for corporations that would otherwise have a filing due date after March 18 and before June 1, 2020.)
    • September 1, 2020for corporations that would otherwise have a filing deadline in June, July, or August 2020.
  • Payment date for 2019 tax year
    • September 1, 2020for balances and instalments under Part I of the Income Tax Act due on or after March 18 and before September 1, 2020.

Canada's economy shrank at an 8% in the first 3 months of 2020

Canada's economy shrank at an 8 per cent annual pace in the first three months of 2020, worst since 2009. Statistics Canada reported Friday that the slowdown was the sharpest quarterly drop since the financial crisis of 2009, as measures to contain the pandemic such as school and business closures, border shutdowns and travel restrictions brought economic activity grinding to a halt. 

The eight per cent decline was better than the ten per cent contraction that economists had been expecting for the period.

While the vast majority of the contraction came in March when the pandemic hit, January and February's numbers weren't overly strong to begin with due to pre-existing drags such as rail blockades across the country, and a teacher strike in Ontario in February. 

Canada's gross domestic product was 2.1 per cent smaller over the three months than it was at the end of 2019. But much of that came in March alone, as GDP declined by 7.2 per cent during the month. That makes March 2020 the worst month for Canada's economy since record-keeping began in 1961.

By sector, the slowdown in March was striking, including:

  • Accommodation and food services, down 39.5 per cent.
  • Transportation and warehousing, down 12.2 per cent.
  • Air transportation, down 40.9 per cent.
  • Manufacturing, down 6.5 per cent.
  • Retail trade, down 9.6 per cent.
  • Educational services, down 13.5 per cent.
  • Arts, entertainment and recreation, down 41.3 per cent.
  • Construction, down 4.4 per cent.
  • Mining, quarrying, and oil and gas extraction, down five per cent.

Canadian Economy Shrank More Than U.S. but Less than Other G7 Countries: StatCan

Today’s StatCan report noted that while Canada’s performance may be worse than that of the U.S., it’s in the “middle of the pack” compared to other developed countries, Bank of Montreal chief economist Doug Porter wrote in a client note. He outlined the change in GDP “from least bad to worst”:

  • Japan (-3.4 per cent)
  • S. (-5.0 per cent)
  • K. (-7.7 per cent)
  • Canada (-8.2 per cent)
  • Germany (-8.6 per cent)
  • Italy (-17.7 per cent)
  • France (-21.4 per cent)

Ottawa extends large cruise ship ban until October

Transport Minister Marc Garneau said Thursday passenger ships with overnight accommodations for more than 100 people — including both passengers and crew — can't operate in Canadian waters until at least Oct. 31. The move extends and expands an order issued in mid-March that barred ships with more than 500 passengers from Canadian waters until July.

Ships with more than 12 passengers can't go to the Arctic until at least Oct. 31, for fear that one might carry COVID-19 to a remote northern community.

Alberta partners with fast-food chains to offer free masks at drive-thrus

Albertans will be able to pick up free non-medical masks from the drive-thrus of A&W, McDonald's and Tim Hortons starting in early June. The Alberta government is distributing 20 million masks meant to help limit the spread of COVID-19, said Health Minister Tyler Shandro during a press conference Friday.

The masks are for situations where physical distancing is difficult to maintain, such as on public transit or while shopping. The province is distributing the masks through the three restaurants because they provide an ease of access, said the province's health minister.

Ontario considering a regional phased approach to reopening

Ontario Premier Doug Ford said he's considering a regional phased approach to reopening the province, an approach he had previously resisted. Ford said that the province's expanded testing guidelines, released Friday morning, will help public health officials better understand trends and hot spots. The new strategy will focus on communities with relatively high numbers of cases and certain high-risk workplaces while also boosting Ontario's contact-tracing work. 

Alberta launches new tool available for commercial rent feedback

The province has since launched a survey for landlords and tenants to provide feedback on any challenges experienced in attempting to develop a payment schedule or meet financial obligations.

4 in 10 Canadians can feasibly perform their job from home – StatCan

New data released by Statistics Canada reveals that only four in 10 Canadians hold jobs that can be reasonably performed remotely. StatCan data released on Thursday broke down how many Canadians are physically able to work from home, based on their employment, and found that only 39 per cent of Canadians are able to work remotely. The data looked at the “telework capacity” of different industries to measure how likely they were to be able to work from home.

Finance, insurance and educational service workers had the highest ability to work from home, at 85 per cent. Other jobs that had a high capacity for being performed remotely were professional, scientific and technical services, at 84 per cent. At the other end of the scale, food services, agriculture, forestry, fishing and hunting have “almost no telework capacity,

The 39 per cent statistic is striking when compared to the percentage of Canadians who worked from home before the pandemic. In 2018, around 13 per cent of Canadians were doing some scheduled work from home hours -- only a tiny raise from the 10 per cent of Canadians who worked from home in 2000, according to the StatCan report.

CFA NATIONAL SPONSOR

National Sponsor: Fairhart

ENTERTAIN • INFORM • RETAIN

We’ve delivered the message to audiences through hundreds of projects and dozens of media formats for two decades. We specialize in corporate events and digital media production. Our diverse roster of clients crosses through many sectors including health and beauty, major retail franchises, pharma and the legal industry. And, we are proud to be returning as the CFA’s Production Partner! 

CONTACT:

Chris Milthorpe
FAIRHART PRODUCTIONS
Tel: 416) 648-0818
Email: chris@fairhart.com

Webinar Series On Demand

UPCOMING WEBINAR

JUNE 2, 2020
AT 2:00 PM ET

Hands-On Approach to Commercial Real Estate  
 50 CFE PARTICIPATION  CREDITS  

SPEAKERS: Armen Khajetoorian and Kwaku Tabi, Cassels, Brock & Blackwell LLP

Commercial real estate has been a hot topic throughout COVID-19. Join us for a deep dive into commercial real estate leasing issues and gain a practical take-aways through a “how-to” approach to challenges you may be facing.

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Feedback from our Members

“'THANK YOU' for all the hard work and fantastic results you’re already getting for CFA members and the franchise industry more broadly. You must all be working around the clock to keep up with this fast-paced environment we’re all living in right now! Well done!”

 - Andraya Frith, Partner, Osler

COVID-19's impact on the world is creating waves across all sectors and industries.

Every member of the CFA community is dealing with an issue that is affecting the world, our industries, our communities, our businesses, and our people.

We would like to hear from you if you have any topics, issues or questions to navigate turbulent times in order to support you further: 

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