On July 17, the Canadian Government released draft legislation with proposals to amend the Income Tax Act rules governing the Canada Emergency Wage Subsidy (“CEWS”). These amendments include an extension of the CEWS until December 19, 2020, as well as other modifications to the qualifying criteria based on a consultation period. Significantly, the changes include eliminating the 30% revenue decline threshold for employers so that employers with any decline in revenue may qualify for the CEWS based on a sliding scale. For reference, please see our earlier communiqué, “Canada Emergency Wage Subsidy: As enacted, extended and proposed to be amended”, which contains a detailed overview of the CEWS as enacted on April 14, 2020 and then amended on May 15, 2020.
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