Canada: Wage subsidy extended; future tax plans announced (COVID-19)
Canada: Wage subsidy extended; tax plans announced
Certain employers may now be able to receive the Canada emergency wage subsidy (CEWS) into 2021.
The CEWS program was established as a relief program in response to the coronavirus (COVID-19) pandemic.
In a speech (the Speech from the Throne) on 23 September 2020, the government outlined some of its tax and economic priorities in the wake of COVID-19, and pledged to continue certain emergency support programs for individuals and businesses affected by the pandemic—including the CEWS. In the speech, the government said that in addition to extending these programs, it is focused on measures to create jobs, invest in health and child care, and address climate change, among other priorities.
Although details of these changes have not yet been released, the government indicated that it intends to propose legislation to introduce these measures this fall, as part of an update to Canada’s COVID-19 economic response plan. The government also advised that it intends to implement taxes to address wealth inequality, including to limit the stock option deduction, and to tax large digital companies.
Read a September 2020 report [PDF 177 KB] prepared by the KPMG member firm in Canada
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