Tax Measures Under Canada’s COVID-19 Economic Response Plan

Revenu Québec commented that, in the context of COVID-19, where supporting documentation is provided, the total or partial reimbursement of a maximum amount of $500 intended to offset the cost of acquiring personal computer equipment or office equipment required for working from home is not a taxable benefit for the employee.

In the May 29 IB, the Government of Québec announced that it plans to amend tax legislation to grant discretionary power to the Minister of Revenue to extend the deadlines for businesses to apply for tax incentives.

In the June 29 IB, it was announced that temporary discretionary power will be granted to departments and agencies (e.g. SODEC for the purposes of the Quebec film or television production credit, or Investissement Quebec for, among other things, the eligibility of a corporation’s e-business activities) responsible for administering the non-tax aspects of tax incentives. Those agencies may deem businesses or persons eligible for those tax incentives to the extent they have demonstrated that their inability to meet the eligibility criteria is directly attributable to measures put in place to mitigate the effects of COVID-19. Similarly, the Taxation Act will be amended to grant the Minister of Revenue discretionary power to include any non-eligible salary or wages, or non-eligible activities, in the calculation of eligible salary or wages, or eligible activities, in similar determinations regarding eligibility for tax incentives. And similarly, the impossibility of satisfying the eligibility criteria must be directly attributable to the measures put in place to mitigate the effects of COVID-19. The amendments will apply to taxation or fiscal years ending after March 14, 2020.

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