Bill C-9 (Historical)

An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)

This enactment amends the Income Tax Act to revise the eligibility criteria, as well as the level of subsidization, under the Canada Emergency Wage Subsidy (CEWS) as part of the response to the coronavirus disease 2019. It also extends the CEWS to June 30, 2021. The enactment further amends the Income Tax Act to introduce the Canada Emergency Rent Subsidy (CERS) in order to support those hardest hit by the coronavirus disease 2019. This subsidy provides relief in respect of rent and interest on debt obligations incurred to acquire real property used by businesses, charities and not-for-profit organizations in the course of their businesses or other activities. The rent subsidy is effective as of September 27, 2020.

Income Tax Act

[The Chair, Conservative, Bruce Stanton]

The hon. member for New Westminster—Burnaby.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Chair, in regard to wage subsidy relief or any other government supports, how many company applications have been refused because the company is involved with international tax evasion or the company is named in tax-evasion papers like the Bahamas papers, the Panama papers or the paradise papers, or the company uses or has used international tax havens?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I am sorry. It is because of the sound. What was the first part of the question? I know it was how many companies in tax havens and stuff, but companies doing what?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Chair, how many companies have had their applications refused because of that involvement?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, is the member asking about the BCAP, the LEEFF or the wage subsidy program?

[The Chair, Conservative, Bruce Stanton]

I will ask the hon. member just to clarify the question back to the hon. minister and we will proceed accordingly.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I would like to really apologize to the NDP finance critic. I just did not hear, maybe because of the transmission, exactly the first part of the question. It is business owners turned down for which program?

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Mr. Chair, I referred to the wage subsidy or LEEFF or any other program, and I hope I will not be penalized on the time.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, as the hon. member for the NDP knows, so far for the LEEFF program we only have two businesses we have qualified. Other businesses are currently being reviewed and the LEEFF program absolutely has very tough criteria around environmental performance, around executive compensation, around being sure that these are companies that are paying their taxes in Canada and around foreign ownership assets, so we are being very, very careful in that program. The LEEFF program is one which is very bespoke and there is a tiger team that goes through the financials of each company very carefully.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Chair, in her speech last week, the minister said that she would “impose” limits on the debt. What limits?

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

Mr. Chair, I think in my answer around the retroactivity of the rent subsidy, I have been pointing to some limits that our government is imposing. We are thoughtful about targeting our support where—

[The Chair, Conservative, Bruce Stanton]

The hon. member.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Chair, is there a dollar figure to which she would limit the debt?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, as I said in my speech last week—

[The Chair, Conservative, Bruce Stanton]

The hon. member.