Extension To Government Support Programs and Changes to Inter-Generational Transfers – August 11, 2021

Extension To Government Support Programs And Changes To Inter-Generational Transfers

The Canadian government recently announced extensions to their pandemic support programs. The following are the significant updates on the government’s support programs:·

  • Canada Emergency Wage Subsidy (CEWS), and Canada Emergency Rent Subsidy (CERS), including Lockdown Support, have been extended until October 23, 2021.
  • Increasing the CEWS and CERS subsidy rate for period ending September 25 but no changes to CRHP. The maximum rate for the wage and rent subsidies would be set at 40% in Period 20 instead of the 20% announced in the Federal Budget.
  • Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), and the Canada Recovery Sickness Benefit (CRSB), have also been extended until October 23, 2021.
  • Increasing the maximum number of weeks of CRB by 4 weeks to a total of 54 weeks, at a rate of $300 per week.
  • To further clarify the online calculator for the Canada Recovery Hiring Program (CRHP), CRA and CPA Canada have created a presentation that can be found here: https://www.youtube.com/watch?v=_Nna5W2pWnM&t=618s

Potential changes affecting inter-generational transfers:

The federal government recently passed into law Bill C-208 to provide tax relief to families who wish to transfer shares of small business corporations, family farm and fishing corporations to their children. However, the government intends to bring amendments to this Bill because it may allow for artificial tax planning. The amendments would apply the later of November 1, 2021, or the date of the publication of the final draft legislation. If you are considering a transfer of your business to your children, please contact our office and we will be pleased to assist.

Please note the upcoming due dates for CEWS claims:·

  • Period 12 (January 17 to February 13, 2021) – deadline is August 12, 2021
  • Period 13 (February 14 to March 13, 2021) – deadline is September 9, 2021
  • Period 14 (March 14, 2021 to April 10, 2021) – deadline is October 7, 2021

Please note the upcoming due dates for CERS claims:·

  • Period 5 (January 17 to February 13, 2021) – deadline is August 12, 2021
  • Period 6 (February 14 to March 13, 2021) – deadline is September 9, 2021
  • Period 7 (March 14, 2021 to April 10, 2021) – deadline is October 7, 2021


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