Income Tax Regulations

8901.2 (0.1) The following definitions apply in this section.

prior year revenue decline

prior year revenue decline, of an eligible entity means, the average of all percentages each of which would, if the Act were read without reference to subsection 125.7(9) and section 257, be the revenue reduction percentage of the eligible entity for a qualifying period

• (a) that is any of the first qualifying period to the thirteenth qualifying period (but including only one of the tenth qualifying period or the eleventh qualifying period); and

• (b) throughout which the eligible entity was

  • (i) carrying on its ordinary activities, or

  • (ii) not carrying on its ordinary activities because of a public health restriction. (réduction du revenu d’une année antérieure)

qualifying public health restriction

qualifying public health restriction, of an eligible entity for a qualifying period, means that

• (a) one or more qualifying properties (in this definition having the same meaning as in subsection 125.7(1) of the Act) of the eligible entity — or of one or more specified tenants (within the meaning of the definition public health restriction in subsection 125.7(1) of the Act) of the eligible entity — is subject to a public health restriction for at least seven days in the qualifying period; and

• (b) it is reasonable to conclude that at least approximately 25% of the qualifying revenues of the eligible entity — together with the qualifying revenues of any specified tenants of the eligible entity — for the prior reference period were derived from the restricted activities. (restrictions sanitaires admissibles)

qualifying tourism or hospitality entity

qualifying tourism or hospitality entity, for a qualifying period, means an eligible entity that meets the following conditions:

• (a) the entity has a prior year revenue decline greater than or equal to 40%; and

• (b) the total of all amounts, each of which is the eligible entity’s qualifying revenue for the prior reference period for any of the first qualifying period to the thirteenth qualifying period (but including only one of the tenth qualifying period or the eleventh qualifying period), was earned primarily from carrying on one or more of the following activities:

  • (i) operating or managing a facility providing short-term lodging, such as a hotel, a motel, a cottage, a bed and breakfast or a youth hostel,

  • (ii) preparing and serving meals, snacks and beverages made to order for immediate consumption on or off the premises,

    • (A) such as a restaurant, a food truck, a cafeteria, a caterer, a coffee shop, a food concession, a bar, a pub or a nightclub, and

    • (B) for greater certainty, not including the operation of a facility primarily engaged in retailing food or beverage products, such as a supermarket or a convenience store,

  • (iii) operating a travel agency or as a tour operator, including:

    • (A) acting as an agent for tour operators, transportation companies and short-term lodging establishments in selling travel, tour and accommodation services, or

    • (B) arranging, assembling and marketing tours,

  • (iv) organizing, promoting, hosting, supporting or participating in events that meet the artistic or cultural interests of their patrons, including live performances or exhibits intended for public viewing,

  • (v) preserving and exhibiting objects, sites and natural wonders of historical, cultural or educational value, such as the operation of a museum, a historic and heritage site, a zoo, a botanical garden or a nature park,

  • (vi) organizing, promoting or supporting scenic and sightseeing tours, such as sightseeing or dinner cruises, steam train excursions, horse-drawn sightseeing rides, air-boat rides, hot-air balloon rides or charter fishing services,

  • (vii) providing charter bus services, if

    • (A) the buses do not operate on fixed routes and schedules, and

    • (B) the entire vehicle is rented, rather than individual seats,

  • (viii) operating or managing an amusement or theme park, which includes

    • (A) operating a variety of attractions, such as mechanical rides, water rides, games, shows or theme exhibits, and

    • (B) leasing space on a concession basis for these operations,

  • (ix) operating or managing a facility or providing a service that enables patrons to participate in recreational activities,

    • (A) including

      • (I) fitness and recreational sports centres,

      • (II) downhill and cross-country ski/snowboard areas, and equipment such as ski lifts and tows (including revenues from equipment rental services and ski/snowboard instruction services provided at the area),

      • (III) the operation of docking and storage facilities for pleasure-craft owners, with or without related activities, such as retailing fuel and marine supplies, boat repair and maintenance and rental services,

      • (IV) the operation of recreation and amusement facilities and services including establishments primarily engaged in maintaining non-gambling coin-operated amusement devices, in businesses operated by others, and

      • (V) other amusement activities, such as amateur sports clubs, teams or leagues, archery or shooting, ballroom dancing, river rafting, curling clubs, mini golf and bowling, and

    • (B) excluding

      • (I) golf, golf instruction and the ownership or operation of a facility that is a golf course, a golf driving range, or a golf clubhouse,

      • (II) country clubs, and

      • (III) professional sports clubs, teams or leagues or facilities used primarily by such organizations,

  • (x) operating or managing serviced or unserviced sites to accommodate campers and their equipment for tents, tent trailers, travel trailers and recreational vehicles, excluding mobile home sites,

  • (xi) operating or managing an overnight recreational camp, such as a children’s camp, a family vacation camp or an outdoor adventure retreat,

  • (xii) operating or managing a hunting camp or a fishing camp,

  • (xiii) operating or managing a duty-free retail store at a land border crossing where the only exit route is to the United States,

  • (xiv) operating or managing a facility that is primarily engaged in exhibiting motion pictures, such as a cinema or a drive-in theatre,

  • (xv) operating or managing an amusement arcade, such as a family fun centre, an indoor play area, a pinball arcade or a video game arcade,

  • (xvi) operating a facility allowing passengers to board and leave a cruise ship,

  • (xvii) operating or managing an airport, including renting hangar space and providing baggage handling, cargo handling and aircraft parking services,

  • (xviii) operating or managing a casino,

  • (xix) promoting a destination or region in Canada for the purpose of attracting tourism,

  • (xx) organizing, planning, promoting, hosting or supporting:

    • (A) conventions, trade shows or festivals, or

    • (B) weddings, parties or similar events, and

  • (xxi) promoting the interests of the members of an industry organization or association, if the members are primarily engaged in activities described in any of subparagraphs (i) to (xx). (entité touristique ou d’accueil admissible)

(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;

• (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; and

• (c) for the twenty-second qualifying period,

  • (i) the lesser of 75% and the eligible entity’s revenue reduction percentage for the qualifying period, if, for the qualifying period,

    • (A) the eligible entity’s revenue reduction percentage is greater than or equal to 40%, and

    • (B) either of the following conditions is met:

      • (I) the eligible entity is a qualifying tourism or hospitality entity, or

      • (II) the eligible entity is subject to a qualifying public health restriction,

  • (ii) if subparagraph (i) does not apply to the eligible entity, the eligible entity’s revenue reduction percentage for the qualifying period is greater than or equal to 50% and the prior year revenue decline of the eligible entity is greater than or equal to 50%, the lesser of 50% and the percentage determined by the formula

    1.6 × (A − 50%) + 10%

    where

    A

    is the eligible entity’s revenue reduction percentage for the qualifying period, and

  • (iii) in any other case, nil.

(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 and the twenty-second 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 and the twenty-second 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%.

(8) For the twenty-second qualifying period, the percentage determined by regulation for the purposes of the definition recovery wage subsidy rate in subsection 125.7(1) of the Act is 50%.