COVID-19 – Canadian Tax and Business News, release #25
Our COVID-19 Canadian Tax and Business News updates are our way of informing our clients, friends and business associates with recent information that may help businesses and individuals while coping with the outcomes from the COVID-19 pandemic.
Our goal is to monitor the news and release relevant information as it becomes available.
The summary below is based on our understanding and interpretation of the announcements made by the government. The information below is in summary form and subject to change until the proposals are passed as legislation. Contact one of our professionals to discuss these matters in the context of your situation before acting upon such information.
Canada Emergency Rent Subsidy (CERS)
On October 9, 2020, Finance announced the CERS will replace the Canada Emergency Commercial Rent Assistance (CECRA) previously in the place. Specific details on the program and eligibility are discussed in our previous publication Canada Emergency Rent Subsidy Update.
Application Portal
The CERS application portal was officially opened on November 23, 2020. Eligible businesses can apply using their CRA My Business Account. Alternatively, an authorized representative can file the application through the Represent A Client portal. Eligible businesses must create a CERS account number as part of the registration process. This can be done via the CRA My Business Account or Represent A Client.
CERS Calculator & Application Form
The CRA has also provided eligible businesses with an online CERS calculator that can be used to calculate the total subsidy amount. The calculator supports up to 3 locations per application. The calculator will ask for information regarding:
- Revenue comparison method – businesses will have to select the Compare 2019 month with claim month or Average of January and February 2020. Note, whichever option is chosen must be used for all future CERS claims and it must agree to the method chosen under the Canada Emergency Wage Subsidy (CEWS).
- Revenue for the relative months – businesses will have to enter in the monthly revenues for the relevant months and the calculator will determine the rent subsidy rate.
- Lockdown support – businesses will have to identify if they qualify for lockdown support due to forced government lockdowns.
- Business location information – businesses will have to provide the address for each location being claimed under the program as well as:
- If the property is rented, rent expense and any sublease rental income must be provided.
- If the property is owned, property taxes, insurance, interest on commercial mortgages and rental income earned during the claim period.
The information taken from the calculator must be entered into the application portal through My Business Account or Represent A Client.
Businesses must also complete and retain on file the RC665 Canada Emergency Rent Subsidy Attestation form. This form is similar to the CEWS attestation form and requires businesses to certify and attest they qualify for the CERS and also certify whether or not they are making any elections for purposes of the revenue and decline calculation.
After Applying
For businesses with direct deposit, payments can be expected within 3 to 8 days after filing.
Eligible businesses are required to keep all records to support their rent subsidy claim.
Resources
FP Publication – Canada Emergency Rent Subsidy Update
FP Publication – November Tax Update
As we all try to stay safe, we need to remind ourselves business will get back to normal but in the meantime lets all do our part to get to normal as soon as we can. If you have any questions or require further information, don’t hesitate to reach out to us.
Get in touch by email: info@fazzaripartners.com or phone: 905.738.5758
