Bill C-9 amends the Income Tax Act to modify and extend the Canada Emergency Wage Subsidy (CEWS) and introduce the Canada Emergency Rent Subsidy (CERS) in response to the COVID-19 pandemic. The CEWS provides financial support to eligible employers by subsidizing a portion of employee wages. The amendments revise the eligibility criteria and level of support offered under the CEWS and extend the program to June 30, 2021. The CERS provides rent and interest relief to businesses, charities, and non-profit organizations impacted by the pandemic, covering expenses related to real property used in their operations. The rent subsidy is effective as of September 27, 2020.
The bill outlines specific formulas and criteria for determining the amount of subsidies available under both the CEWS and CERS. These calculations take into account factors such as revenue reduction, qualifying rent expenses, and public health restrictions. The legislation also includes provisions to prevent abuse of the subsidy programs and ensures that assistance received is treated as government assistance for tax purposes.
In addition to outlining the details of the CEWS and CERS programs, Bill C-9 includes amendments to the Income Tax Act regarding affiliated entities, joint ventures, and asset acquisitions. It also addresses penalties for providing false information or attempting to avoid the rules of the subsidy programs. The bill grants the Minister of National Revenue the authority to determine and refund overpayments related to the CEWS and CERS.
Finally, Bill C-9 allows the sharing of taxpayer information with provincial government officials for the administration, enforcement, evaluation, or formulation of policies related to financial assistance programs concerning rent or interest payments during the COVID-19 pandemic. The Act specifies that some of the provisions came into force on April 11, 2020, while others came into force on September 27, 2020.
Jobs
This bill modifies the Canada Emergency Wage Subsidy (CEWS). The CEWS helps businesses keep employees on their payroll by subsidizing a percentage of their wages. The bill extends the CEWS program to June 30, 2021, and changes the rules for who can get the subsidy and how much money they can receive.
Taxation
This bill amends the Income Tax Act to implement the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS). It changes how these subsidies are calculated and who is eligible. The bill also includes rules to prevent people from taking advantage of the system and makes sure that any money received through these programs is counted as government help for tax purposes.
Spending
This bill authorizes government spending through the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS). It defines how much money eligible businesses can receive based on factors like revenue loss and rent expenses. The bill also sets rules to ensure that the money is used as intended and to prevent fraud.