On May 15, 2020, the Government of Canada announced that the Canada Emergency Wage Subsidy (“CEWS”) will be extended for an additional 12-week period to August 29, 2020. At the same time, the government announced retroactive regulatory changes, and legislative proposals expected to come into force at a later date. These changes were introduced in an effort to promote employment and stimulate economic recovery as restrictions are gradually lifted across Canada.

Immediate Changes to CEWS Eligibility:

The government introduced a series of regulations extending eligibility for the CEWS to the following categories of employers:

• Partnerships with one or more non-eligible members will be eligible so long as non-eligible entity partners control a minority of the partnership’s interests at fair market value during the qualifying period;
• Indigenous government-owned corporations that are carrying on a business and are tax-exempt under paragraph 149(1)(d.5) of the Income Tax Act, their wholly-owned subsidiaries that are carrying on a business and are tax-exempt under paragraph 149(1)(d.6) of the Income Tax Act, as well as partnerships where the partners are members of Indigenous governments and eligible employers;
• Non-public education and training institutions, including for-profit and non-profit private colleges, schools, and institutions (i.e., arts schools, language schools, driving schools, flight schools and culinary schools);
• National-level Registered Canadian Amateur Athletic Associations that are tax-exempt under paragraph 149(1)(g) of the Income Tax Act; and
• Registered Journalism Organizations that are tax-exempt under paragraph 149(1)(h) of the Income Tax Act.

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