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ARTICLE · 28 JULY 2020

Expansion Of The Canada Emergency Wage Subsidy

On July 17, 2020, the Canadian Government released draft legislative proposals (the "Amendments" or "Bill C-20") to amend section 125.7 and other provisions of the Income Tax Act (Canada) (the "ITA")

CanadaTax

On July 17, 2020, the Canadian Government released draft legislative proposals (the "Amendments" or "Bill C-20") to amend section 125.7 and other provisions of the Income Tax Act (Canada) (the "ITA").1.The Amendments extend the Canada Emergency Wage Subsidy (the "CEWS") and significantly expand the scope of the program by making it available to any eligible employer that experiences a revenue decline for qualifying periods starting on July 5, 2020.

The original CEWS was implemented for 12 weeks from March 15, 2020 to June 6, 2020. On May 15, 2020, Finance Minister Bill Morneau announced that the Government of Canada would extend the CEWS by an additional 12 weeks to August 29, 2020. The Canadian Government is proposing a further extension of the CEWS to December 19, 2020.

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