An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) (S.C. 2020, c. 13)

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Assented to 2020-11-19

R.S., c. 1 (5th Supp.)Income Tax Act (continued)

3 (1) Paragraph 152(1)(b) of the Act is replaced by the following:
- (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3) or (3.001), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2), 125.7(2) or (2.1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(2) Subsection 152(3.4) of the Act is replaced by the following:
- Marginal note:COVID-19 — notice of determination
  (3.4) The Minister may at any time determine the amount deemed by subsection 125.7(2) or (2.1) to be an overpayment on account of a taxpayer’s liability under this Part that arose during a qualifying period (as defined in subsection 125.7(1)), or determine that there is no such amount, and send a notice of the determination to the taxpayer.

4 (1) Subparagraph 163(2)(i)(i) of the Act is replaced by the following:
- (i) the amount that would be deemed by subsection 125.7(2) or (2.1) to have been an overpayment by the person or partnership if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying entity in subsection 125.7(1) or paragraph (a) of the definition qualifying renter in subsection 125.7(1), as the case may be
(2) Subsection 163(2.901) of the Act is replaced by the following:
- Marginal note:Penalty — COVID-19
  (2.901) Every eligible entity that is deemed by subsection 125.7(6) to have an amount of qualifying revenue — for a current reference period for a qualifying period — is liable to a penalty equal to 25% of the amount that would be deemed by subsection 125.7(2) or (2.1) to have been an overpayment by the eligible entity during that qualifying period if that amount were calculated by reference to the information provided in the application filed pursuant to paragraph (a) of the definition qualifying entity in subsection 125.7(1) or paragraph (a) of the definition qualifying renter in subsection 125.7(1), as the case may be.

5 Subsection 164(1.6) of the Act is replaced by the following:

Marginal note:COVID-19 refunds
(1.6) Notwithstanding subsection (2.01), at any time after the beginning of a taxation year of a taxpayer in which an overpayment is deemed to have arisen under subsection 125.7(2) or (2.1), the Minister may refund to the taxpayer all or any part of the overpayment.

6 Paragraph 241(4)(d) of the Act is amended by adding the following after subparagraph (vii.9):

(vii.10) to an official of a department or agency of a provincial government solely for the purposes of the administration and enforcement, or evaluation or formulation of policy, of a program that provides financial assistance in respect of rent or interest payments in the context of the coronavirus disease 2019 (COVID-19) pandemic,