Regulations Amending the Income Tax Regulations (COVID-19 — Eligible Entities): SOR/2020-107
Canada Gazette, Part II, Volume 154, Number 11
Registration
SOR/2020-107 May 14, 2020
INCOME TAX ACT
P.C. 2020-331 May 13, 2020
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 221 footnote a of the Income Tax Act footnote b, makes the annexed Regulations Amending the Income Tax Regulations (COVID-19 — Eligible Entities).
Regulations Amending the Income Tax Regulations (COVID-19 — Eligible Entities)
Amendment
1 The Income Tax Regulations footnote 1 are amended by adding the following after Part LXXXIX:
PART LXXXIX.1
Eligible Entities Prescribed for COVID-19 Wage Subsidy
8901.1 For the purposes of paragraph (f) of the definition eligible entity in subsection 125.7(1) of the Act, the following entities are prescribed:
- (a) a corporation that meets the following conditions:
- (i) it is described in paragraph 149(1)(d.5) of the Act,
- (ii) not less than 90% of the shares, or the capital, of the corporation are owned by one or more Aboriginal governments (as defined in subsection 241(10) of the Act) — or similar Indigenous governing bodies — described in paragraph 149(1)(c) of the Act, and
- (iii) it carries on a business;
- (b) a corporation that meets the following conditions:
- (i) it is described in paragraph 149(1)(d.6) of the Act,
- (ii) all of the shares (except directors’ qualifying shares), or the capital, of the corporation are owned by one or more of
- (A) an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act, or
- (B) a corporation described in this paragraph or paragraph (a), and
- (iii) it carries on a business;
- (c) a partnership, each member of which is
- (i) an eligible entity, or
- (ii) an Aboriginal government (as defined in subsection 241(10) of the Act) — or a similar Indigenous governing body — described in paragraph 149(1)(c) of the Act;
- (d) a partnership, in respect of a qualifying period, if throughout the qualifying period it is the case that
-
A ≤ 0.5B
- where
- A is the total of all amounts, each of which is the fair market value of an interest in the partnership held — directly or indirectly, through one or more partnerships — by a person or partnership other than an eligible entity, and
- B is the total fair market value of all interests in the partnership;
Coming into Force
2 These Regulations are deemed to have come into force on April 11, 2020.
N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2020-106, Regulations Amending the Income Tax Regulations (COVID-19 — Deemed Remittance).