Income Tax Regulations

8901.2 (1) For the purposes of paragraph (d) of the definition qualifying period in subsection 125.7(1) of the Act, the prescribed periods are

• (a) the period that begins on December 20, 2020 and ends on January 16, 2021;

• (b) the period that begins on January 17, 2021 and ends on February 13, 2021; and

• (c) the period that begins on February 14, 2021 and ends on March 13, 2021.

(2) For the purposes of paragraph (g) of the definition base percentage in subsection 125.7(1) of the Act, the percentages determined by regulation in respect of an eligible entity (as defined in subsection 125.7(1) of the Act) for each of the qualifying periods referred to in paragraphs (1)(a), (b) and (c) are

• (a) if the entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act) is greater than or equal to 50%, 40%; and

• (b) in any other case, 0.8 multiplied by the revenue reduction percentage (as defined in subsection 125.7(1) of the Act).

(3) For the purposes of paragraph (d) of the definition current reference period in subsection 125.7(1) of the Act, the prescribed current reference periods are

• (a) for the qualifying period referred to in paragraph (1)(a), December 2020;

• (b) for the qualifying period referred to in paragraph (1)(b), January 2021; and

• (c) for the qualifying period referred to in paragraph (1)(c), February 2021.

(4) For the purposes of paragraph (c) of the definition prior reference period in subsection 125.7(1) of the Act, the prescribed prior reference periods are

• (a) for the qualifying period referred to in paragraph (1)(a), December 2019;

• (b) for the qualifying period referred to in paragraph (1)(b), January 2020; and

• (c) for the qualifying period referred to in paragraph (1)(c), February 2020.

(5) For the purposes of paragraph (b) of the definition rent subsidy percentage in subsection 125.7(1) of the Act, the percentages determined by regulation in respect of an eligible entity (as defined in subsection 125.7(1) of the Act) for each of the qualifying periods referred to in paragraphs (1)(a), (b) and (c) are

• (a) if the eligible entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act) is greater than or equal to 70%, 65%;

• (b) if the eligible entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act) is greater than or equal to 50% but less than 70%, the percentage determined by the formula

  40% + (A − 50%) × 1.25

  where

  A

  is the eligible entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act); and

• (c) if the eligible entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act) is less than 50%, the percentage determined by the formula

  0.8 × B

  where

  B

  is the eligible entity’s revenue reduction percentage (as defined in subsection 125.7(1) of the Act).

(6) For the purposes of the definition top-up percentage in subsection 125.7(1) of the Act, the percentage determined by regulation for the qualifying periods referred to in paragraphs (1)(a), (b) and (c) is the lesser of 35% and the percentage determined by the formula

(7) The amount determined by regulation in respect of a qualifying entity (as defined in subsection 125.7(1) of the Act) 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 described in

• (a) paragraph (c.4) or (c.5) of the definition qualifying period in subsection 125.7(1) of the Act is 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) paragraph (c.6) or (c.7) of the definition qualifying period in subsection 125.7(1) of the Act is 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; and

• (c) paragraph (1)(a), (b) or (c) is 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.