Bill C-24 has Received Royal Assent

On March 17, 2021, Bill C-24 received Royal Assent.

The Bill summary is as follows:

This enactment amends the Employment Insurance Act in order, temporarily, to increase the maximum number of weeks for which regular benefits may be paid under Part I of that Act and facilitate access to benefits for self-employed persons under Part VII.‍1 of that Act.

It also amends the Canada Recovery Benefits Act to

  • add a condition to provide that a person is eligible for benefits only if they were not, at any time during a benefit period, required to quarantine or isolate themselves under any order made under the Quarantine Act as a result of entering into Canada or

    • if they were required to do so, the only reason for their having been outside Canada was to receive a necessary medical treatment or to accompany someone who was required to receive a necessary medical treatment, or

    • if, as a result of entering into Canada, they were required to isolate themselves under such an order at any time during the benefit period, they are a person to whom the requirement to quarantine themselves under the order would not have applied had they not been required to isolate themselves; and

  • authorize the Minister of Health to assist the Minister of Employment and Social Development in verifying whether a person meets the eligibility condition referred to in paragraph 3(1)‍(m), 10(1)‍(i) or 17(1)‍(i) of the Canada Recovery Benefits Act and to disclose personal information obtained under the Quarantine Act to the Minister of Employment and Social Development for that purpose.

And finally, it amends the Customs Act to authorize the disclosure of information for the purpose of administering or enforcing the Canada Recovery Benefits Act.

Regional Air Transportation Initiative

On March 18, 2021, the government released details on the Regional Air Transportation Initiative (RATI). Supports are distributed through the regional economic development organizations to entities that directly contribute to regional air transportation . The type of support varies by region, industry, and corporate structure. It may include forgivable or repayable funding.

For more information, see the RATI landing page.

CRB Act - International Travel

On March 18, 2021, the government updated their guidance for benefits issued under the CRB Act in respect of ineligibility for periods of quarantine due to international travel. It is consistent with previous commentary and legislation. It notes:

This does not apply to you if you were isolating because:

  • you travelled for medical treatment certified by a medical practitioner

  • you accompanied a person who is not able to travel without help from an attendant to get medical treatment certified by a medical practitioner

  • you are an essential worker who travelled for reasons normally exempt from quarantine when you return to Canada (such health care workers or truck drivers who need to cross the border for work) but were required to this time

If one of these exceptions applies to you and you meet all other eligibility criteria, call the CRA to apply: 1-800-959-8281

CERS Update

On March 18, 2021 - The CERS website was updated to address situations in which an Operating corporation (Opco), was paying rent to a non-arm’s length corporation (Holdco). It noted:

  • Hold Co’s rent subsidy is calculated based on its own eligible expenses and not the commercial rent paid or payable by its non-arm’s length tenant(s).

  • If Hold Co has not experienced a drop in revenue based on its own qualifying revenue, it may still qualify by making use of one of the elective special rules for calculating eligible revenue.

These comments are consistent with what VTN postulated in previous Monthly Tax Update issues.

Also, a Technical Interpretation was released discussing eligibility of ancillary expenses to rent in net lease arrangements.

Watch! Intro to the Canadian Tax Focus with Editor Alan Macnaughton

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Check out the Canadian Tax Focus, published by the Canadian Tax Foundation.

Bonus – We chat with Alan about his time Directing the Personal Income Tax Division at the National Department of Finance.

View previous publications: https://www.ctf.ca/ctfweb/en/newsletters/canadian_tax_focus/ctf_archive.aspx

To contribute, email Alan at: amacnaughton@uwaterloo.ca

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