COVID-19 – Canadian Tax and Business News, release #34
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.
On April 21, 2021, The Canada Revenue Agency (CRA) updated the Canada Emergency Wage Subsidy (CEWS) FAQ page and the Canada Emergency Rent Subsidy (CERS) page with situations where they may accept late filed or amended applications for the wage and rent subsidies. Under the relevant legislations, subsidy applications are due 180 days after the end of the claim period. Based on the updated CRA commentary, eligible businesses may be permitted to late file a claim or amendment in limited circumstances.
Late Filed Amendment – Downward Adjustment
The CRA will accept late filed amendments where an eligible business received more than what they were entitled to. A downward adjustment can be filed at any time even after the deadline for a particular claim period. This can be done using My Business Account or Represent a Client, or by calling Business Enquiries if you filed via the web application.
Late Filed Amendment – Upward Adjustment
If an eligible business is looking to late file an amendment in order to receive more than what they originally claimed, the CRA must approve before an amendment is filed. Eligible businesses must contact the CRA Business Enquiries phone line to see if they are eligible to file an upward adjustment. If approved, the amendment can be filed using My Business Account or Represent a Client, or by obtaining further direction from Business Enquiries if filed via the web application.
If the CRA rejects a request for an amendment, a further review is available and must be filed through My Business Account or Represent A Client by selecting the “Register a formal dispute” option. The limited circumstances where the CRA may accept a request to file an amended application is discussed further in 26-01 of the CEWS FAQ (similar guidance applies for the CERS).
Late Filed Original Claim
The CRA will accept late-filed subsidy original applications only in exceptional circumstances. Similar to requesting an upward adjustment, impacted businesses must contact the CRA Business Enquiries phone line to see if they are eligible to late file an original claim. The exceptional circumstances where the CRA may accept a request to late file an application is discussed further in 26-02 of the CEWS FAQ.
If the CRA rejects a request for a late filed claim, a further review is available and must be filed through My Business Account or Represent A Client by selecting the “Register a formal dispute” option.
If the CRA approves the request for late filing, the claim can be filed using My Business Account, Represent a Client or via the web application. A Notice of Determination will be issued for late filed claims confirming whether the claim was adjusted or denied. If the claim is denied or adjusted on review, a Notice of Objection may be filed within 90 days from the date of issuance to dispute the CRA decision.
Amendments and late filed applications will only be considered if the application request to the Business Enquiries phone line is made within 30 calendar days following the later of:
- the original application filing deadline; and
- April 21, 2021 (i.e. May 21, 2021).
Impacted business should get the process started as soon as possible as the cut off is quickly approaching for earlier claim periods.
As we all try to stay safe, we need to remind ourselves business will get back to normal but in the meantime let’s 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.