Finance Minister Bill Morneau today announced that the Government of Canada will extend the Canada Emergency Wage Subsidy (CEWS) to August 29, 2020.
The government has also revised the criteria to include several additional types of organizations that would not have otherwise been eligible for the CEWS:
Partnerships: Partnerships with non-eligible members will now be eligible entities so long as non-eligible members do not hold a majority.
Indigenous Government-Owned Businesses: The government is extending eligibility to include Indigenous government-owned corporations that are carrying on a business and are tax-exempt under paragraph 149(1)(d.5) of the Income Tax Act, as well as their wholly-owned subsidiaries that are carrying on a business and are tax-exempt under paragraph 149(1)(d.6) of the Income Tax Act.
Registered Canadian Amateur Athletic Associations (RCAAAs): RCAAAs are national associations such as Hockey Canada and Lacrosse Canada. The government is extending eligibility to national-level RCAAAs that are tax-exempt under paragraph 149(1)(g) of the Income Tax Act.
Registered Journalism Organizations: The government is extending eligibility to registered journalism organizations that are tax-exempt under paragraph 149(1)(h) of the Income Tax Act.
Non-public Educational and Training Institutions: The government will allow private colleges and private schools to be eligible entities. This would include for-profit and not-for-profit institutions such as arts schools, language schools, driving schools, flight schools and culinary schools.
The above changes are all retroactive to April 11, 2020, which means the entities are eligible for the CEWS for the first qualifying period starting on March 15, 2020, and subsequent periods.
The government also intends to propose legislative amendments to address a few issues:
- creating a new choice of calculating the baseline remuneration for some employees to address seasonal employees and employees returning from an extended leave;
- allowing amalgamated corporations to use their combined revenue to calculate their revenue decline; and
- refining the criteria for the eligibility of tax-exempt trusts.
More details about the above can be found here.
We will provide further updates on our blog as they are announced.
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Originally published 15 May 2020
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