COVID-19 Updates

With the Canada Emergency Wage Subsidy (“CEWS”), many small and medium-sized businesses are busy at work trying to figure out if their revenue decline was enough to qualify for CEWS. Many businesses, especially service businesses, are having a hard time collecting revenues. In this time of uncertainty, by carefully interpreting the revenue recognition accounting standards, […]

On Saturday, April 11, 2020, parliament held a rare weekend debate to pass Bill C-14, a bill containing legislation for the proposed Canada Emergency Wage Subsidy (“CEWS”). The government chose to enact  CEWS by adding section 125.7 to the Income Tax Act (“Act”). As we will see in this commentary, this was the right decision.

Today, the government announced key changes to the 75% Canada Emergency Wage Subsidy (CEWS). Today’s update addresses many of the concerns we previously raised. As a result, many businesses that didn’t qualify before would now qualify under what we call CEWS “Version 2.0”. Conditions to Qualify Who are Eligible Employers? Benchmark Period to Compare Revenues

The U.S.  recently passed the Coronavirus Relief Bill (CARES Act) to provide economic relief measures to individuals and businesses affected by the COVID-19 pandemic. We point our Canadian readers to the Recovery Rebate, the individual tax measures, and the business tax measures that is sure to help U.S. Expats living in Canada and Canadians who

What is the CEWS? What period does the subsidy cover? Who qualifies & 30% Revenue Decline Test Reference period for comparing year-over-year revenues What if I am a new business? What’s my reference point? Calculating Revenues Calculating Amount of the Subsidy Greater of: How do I compute pre-crisis weekly remuneration? How do I compute remuneration?

The Temporary Wage Subsidy On March 25, 2020, the Canadian government passed Bill C-13 to enact legislative measures in response to COVID-19.  Among these measures were various amendments to the Income Tax Act (the “Act”), including Section 153 of the Act.  Subsection 153(1) of the Act deals with the withholding of tax and source deductions

On March 25, 2020, Rob Phillips, Ontario’s Minister of Finance, put forth the Province’s Economic and Fiscal Update, with a focus on responding to COVID-19. The details and how you can register for these benefits have not been provided yet but we will let you know as soon as these become available. Key Highlights Interest

The Canadian Government has proposed legislation to establish the Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income due to COVID-19 for at least 14 consecutive days within any four-week period from March 15, 2020 until October 3, 2020. You