Earlier this week, Bill C-9 was introduced which proposed changes to the Canada Emergency Wage Subsidy (CEWS) and also introduced details of the Canada Emergency Rent Subsidy (CERS) previously announced on October 9, 2020. Some of the key points are listed below.
- The change to the top-up subsidy revenue decline calculation, and the freezing of period 8 CEWS calculations through to period 10, were included.
- The legislation generally matches the October 9, 2020 release.
- As indicated in the October 9, 2020 release, the first applicable period is Period 8 (September 27 to October 24).
- Up to $75,000 per period in rent, mortgage interest, insurance and property taxes paid by commercial property owners can be partially subsidized.
- Several additional rules were included to further limit the claim.
- CERS legislation is included as a part of CEWS legislation (Section 125.7).
- The subsidy percentage is computed in the same manner as CEWS (using the same revenue reduction percentages), with the same 65% maximum for all periods ending on or before December 19, 2020.
- An additional rent top-up percentage will provide a further subsidy of 25% for the portion of the period throughout which the property is subject to a public health restriction.
CERS and CEWS
- Applications are due by the later of January 31, 2021 and 180 days after the end of the qualifying period.
- Several revenue recognition elections previously available only until Period 4 have been made available for all periods.
- The ability to revoke or amend elections has been added.
Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.
Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
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