Canada: Clarity for Canada emergency rent subsidy claims (COVID-19)
Bill C-14 provides claimants access to the CERS prior to the payment of certain eligible expenses
Access to the CERS prior to the payment of certain eligible expenses
Bill C-14—providing timing clarity on Canada emergency rent subsidy (CERS) claims for eligible expenses—received its third reading in April 2021.
The legislation also provides claimants access to the CERS prior to the payment of certain eligible expenses, as well as additional temporary support for families entitled to the Canada child benefit.
In addition, the regulations for the Canada emergency wage subsidy (CEWS) and CERS extension for periods 14 to 16 (14 March 2021 to 5 June 2021) were published in the official gazette in April 2021 and are now effective. The wage and rent subsidy programs are relief measures offered in response to the coronavirus (COVID-19) pandemic.
Corporate measures included in Bill C-14
Bill C-14 includes a rule that deems an eligible entity to have paid the eligible expense on the date it first became due, as long as the eligible entity attests that it intends to (and does) pay the amount within 60 days of receiving the subsidy. The new deeming rule provides relief for CERS claimants who would otherwise have had to pay an amount within a particular qualifying period for the amount to be considered an eligible expense on which they could claim the subsidy.
CEWS and CERS extension (periods 14-16)
Finance implemented regulations required to extend the CEWS, CERS and Lockdown Support Subsidy for eligible businesses until 5 June 2021.
These latest amendments to the income tax regulations prescribe three additional four-week periods, when eligible organizations can receive continued support through the CEWS and CERS (including the Lockdown Support Subsidy) from 14 March 2021 to 5 June 2021 (periods 14 to 16).
The top-up, base rates and the prescribed amounts for furloughed employees available under the CEWS remain the same as periods 11 to 13 (20 December 2020 to 13 March 2021). Similarly, the CERS and Lockdown Support Subsidy rate structures that applied for periods 11 to 13 will also apply for periods 14 to 16.
Finance previously announced that it would extend these programs to 5 June 2021.
Read an April 2021 report prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.