A Closer Look At Qualifying Revenues For CEWS

The situation regarding COVID-19 is changing rapidly. This post is current as of April 19, 2020.

The focus of this article is "qualifying revenue". It is the amount of qualifying revenue that is used to determine whether an applicant meets the revenue reduction condition under the Canada Emergency Wage Subsidy ("CEWS"). This article highlights some aspects of the computation of qualifying revenue.

Meaning of "Qualifying Revenue"

According to the CEWS legislation, "qualifying revenue of an eligible entity" is the inflow of cash, receivables or other consideration arising in the course of the ordinary activities of the eligible entity in Canada generally from the sale of goods, the rendering of services and the use by others of resources of the eligible entity. It should be generally determined in accordance with its normal accounting practices. It does not include extraordinary items as well as benefits under the CEWS or the 10% temporary wage subsidy program.