Income Tax Regulations

8901.2 (1) The amount determined by regulation in respect of a qualifying entity for the purposes of clause (b)(iv)(B) of the description of A in subsection 125.7(2) of the Act for a week in a qualifying period is

• (a) for the seventh qualifying period and the eighth qualifying period, the greater of

  • (i) the amount determined for the week under subparagraph (a)(i) of the description of A in subsection 125.7(2) of the Act, and

  • (ii) the amount determined for the week under subparagraph (a)(ii) of the description of A in subsection 125.7(2) of the Act;

• (b) for the ninth qualifying period and the tenth qualifying period, the greater of

  • (i) $500, and

  • (ii) the lesser of

    • (A) 55% of baseline remuneration (as defined in subsection 125.7(1) of the Act) in respect of the eligible employee determined for that week, and

    • (B) $573;

• (c) for any of the eleventh qualifying period to the nineteenth qualifying period, the greater of

  • (i) $500, and

  • (ii) the lesser of

    • (A) 55% of baseline remuneration (as defined in subsection 125.7(1) of the Act) in respect of the eligible employee determined for that week, and

    • (B) $595; and

• (d) for the twentieth qualifying period and any subsequent qualifying period, nil.

(2) For the purposes of paragraph (c) of the definition prior reference period in subsection 125.7(1) of the Act, the prescribed period for the qualifying periods referred to in subsection (3) is January and February, 2020 if

• (a) on March 1, 2019, the eligible entity was not carrying on business or otherwise carrying on its ordinary activities; and

• (b) the eligible entity elects for all of the periods referred to in subsection (3).

(3) For the purposes of subsection (2), the periods prescribed under paragraph (d) of the definition qualifying period in subsection 125.7(1) of the Act are the fourteenth qualifying period, the fifteenth qualifying period, the sixteenth qualifying period and the seventeenth qualifying period.

(4) The percentage determined for the purposes of the definition base percentage in subsection 125.7(1) of the Act, in respect of an eligible entity, is

• (a) for the twentieth qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 25%, and

  • (ii) in any other case, the percentage determined by the formula

    0.625 × (A − 10%)

    where

    A

    is the revenue reduction percentage; and

• (b) for the twenty-first qualifying period,

  • (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 10%, and

  • (ii) in any other case, the percentage determined by the formula

    0.25 × (A − 10%)

    where

    A

    is the revenue reduction percentage.

(5) The percentage determined for the purposes of the definition top-up percentage in subsection 125.7(1) of the Act is

• (a) for the twentieth qualifying period, the lesser of 15% and the percentage determined by the formula

  0.75 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period; and

• (b) for the twenty-first qualifying period, the lesser of 10% and the percentage determined by the formula

  0.5 × (A − 50%)

  where

  A

  is the entity’s top-up revenue reduction percentage for the qualifying period.

(6) For the twenty-first qualifying period, the percentage determined for the purposes of paragraph (b) of the definition rent subsidy percentage in subsection 125.7(1) of the Act is the percentage determined by the formula

(7) For the twenty-first qualifying period, the percentage determined for the purposes of the description of A in the definition rent top-up percentage in subsection 125.7(1) of the Act is 25%.