All details below subject to interpretation and forthcoming legislation and details below WILL change as more information come available.
| 1 | 10% announced March 2020
Legislation passed |
75% announced April 2020
No legislation yet – only outline |
|
| 2 | How much – 10% wages paid between March 18 and June 19
Maximums: – per employee $1,375 during entire 3 months – per entity $25000 during the entire 3 months |
How much –
Maximums: – per employee maximum $847 per week for period March 15 to June 6 2020 – per entity no limits |
|
| 3 | Specific periods for claiming:
– reduce any payroll remittances post March 18, 2020 |
Specific periods for reporting/claiming:
Claiming period Period I March 5-April 11 Period 2 April 12-May 9 Period 3 May 10-June 6 |
Reference period for eligibility
March 2020 over March 2019 April 2020 over April 2019 May 2020 over May 2019 |
| 4 | Eligibility:
-Canadian controlled private corporations (“CCPC”) that has more than $0 small business limit in it’s last taxation year i.e. actually claimed more than $0 small business deduction -An individual other than a trust -A partnership, all members of which are CCPC’s, individuals or registered charities – -A non-profit entity -A registered charity |
Eligibility:
– Taxable corporations – Individuals – Partnerships – A non-profit entity – A registered charity |
|
| 5 | – No % revenue decline required | – Revenue declined by at least 30% compared with same month in prior year; Revenue must be from business carried on in Canada | |
| 6 | – No arms-length requirement for revenue | – Revenue must be from arms-length sources and not from “related” persons | |
| 7 | Eligible 10% amount is claimed by reducing remittance of income taxes but not CPP/EI portion of remittance | Eligible 75% amount is claimed through CRA website likely starting in 6 weeks. Monthly claims required | |
| 8 | No details | Eligible 75% amount is reduced by any 10% credits claimed | |
| 9 | Each eligible company in an associated group can claim up to $25,000 | Each eligible company in an associated group has no limit |
| 10 | The amounts received are taxable | The amounts received are taxable |
| 11 | Associated groups with taxable capital in excess of $15m will not be eligible | Associated groups – no limits |
| 12 | Must have had a CRA payroll number as of March 18 2020 | Unknown |
| 13 | If the income tax remittance is insufficient to utilize the calculated subsidy, the unused subsidy will reduce payroll income tax remittances after June 20, 2020 | Claims will be made online through CRA portal and no offset available against payroll remittances |
| General guidance | ||
| Companies with revenue from non-arms length parties will not be eligible for 75% subsidy – no details on what % will disqualify. What about an integrated group of companies-
e.g. one manufactures, one sells etc. |
||
| Claim 10% as soon as possible. If 75% then available the latter will be reduced by the initial 10% claim | ||
