Canada’s federal government in an “economic snapshot” (8 July 2020) discussed the effects of the coronavirus (COVID-19) pandemic on tax revenues and announced an extension of an emergency response wage subsidy program.
The 168-page snapshot provided an update on the economic outlook only for the year ended 31 March 2021 and the projected deficit for 2020-21. Although the government does not specifically introduce any new tax changes in the snapshot, it subsequently announced that it will extend the Canada emergency wage subsidy until December 2020.
The Prime Minister confirmed on 13 July 2020 that the emergency wage subsidy would be extended to December 2020, but did not provide further details. Changes to the subsidy program, including possible revisions to the revenue-drop threshold starting 5 July 2020 to 1 August 2020 (“period five”), are expected to be revealed soon.
Read a July 2020 report prepared by the KPMG member firm in Canada
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