Any substantive changes in this Legislative Summary that have been made since the preceding issue are indicated in bold print.
Bill C-17, An Act respecting additional COVID-19 measures,1 was introduced in the House of Commons on 10 June 2020 by the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, and given first reading the same day.
Unlike other pieces of legislation introduced during the coronavirus disease (COVID‑19) pandemic, the first reading version of the bill failed to get the unanimous consent necessary for it to be expedited through all the stages of the legislative process.2
On 20 July 2020, the government introduced Bill C-20, An Act respecting further COVID-19 measures,3 containing some of the same provisions as those outlined in Bill C-17.4 Bill C-20 received Royal Assent on 27 July 2020. Bill C-17, however, died on the Order Paper when the first session of the 43rd Parliament was prorogued on 18 August 2020.
As indicated by its title, the purpose of Bill C-17 is to implement additional measures in response to the COVID-19 pandemic.
Bill C-17 has four parts, comprising 16 clauses, and a schedule:
This Legislative Summary provides a brief description of the main measures proposed in the bill by summarizing the substance of each part.
Clause 1 of the bill amends section 87(2) of the ITA to allow a corporation formed from an amalgamation of two or more corporations to calculate its revenue for the purposes of qualifying for the CEWS by using the combined revenues of the formerly separate corporations (new section 87(2)(g.6)). The amalgamated corporation will be ineligible from using this calculation if the main purpose for the amalgamation was to qualify for the CEWS.
The CEWS baseline remuneration period is the period – at the time Bill C-17 was introduced, between 1 January 2020 and 15 March 2020 – in which an employee's average salary is calculated for the purpose of determining the amount of the subsidy for which they are eligible. Clause 2(1) of the bill amends section 125.7(1) of the ITA to create a second baseline remuneration period for the CEWS meant to capture seasonal workers and other employees who did not have remuneration between January 2020 and March 2020. This change will allow employers to choose between the existing baseline remuneration period or the period from 1 March 2019 to 31 May 2019. Clause 2(1) also allows additional baseline remuneration periods to be added by regulation.
With respect to the CEWS, clause 2(2) of the bill amends the definition of “eligible entity” set out in section 125.7(1) of the ITA in order to limit the trusts that qualify for the subsidy to:
Under existing legislation, a condition for receiving the CEWS is to have a payroll account registered with the Canada Revenue Agency (CRA). Employers who use a payroll service provider to manage their employee payrolls may be ineligible for the CEWS because their payroll accounts are held by the payroll service provider rather than the employer.
Clause 2(3) of the bill amends the definition of “qualifying entity” with respect to the CEWS in section 125.7(1) of the ITA to include an entity whose payroll for its employees is administered by a payroll service provider that is registered with a CRA payroll account to remit source deductions for the entity's employees.
Clauses 1 and 2 of the bill are deemed to have come into force on 11 April 2020, except that, for the periods described in paragraphs (a) and (b) of the definition of “qualifying period” in section 125.7(1) of the ITA, paragraphs (a) and (b) of the definition of “eligible entity” in section 125.7(1) of the Act are to be read as follows:
- a corporation, other than a corporation that is exempt from tax under this Part or is a public institution;
- an individual.
Clause 4 of the bill enacts the TLOPA.
The purpose of the TLOPA is to temporarily suspend and authorize the temporary suspension or extension of certain time limits established by or under Acts of Parliament to prevent exceptional circumstances produced by the COVID-19 pandemic from making it difficult or impossible to comply with those time limits. It also provides for the temporary extension of certain periods for the purpose of preventing any unfair or undesirable effects that may result from the expiry of those periods due to those exceptional circumstances (section 5(1) of the TLOPA). The term “period” is defined as including the time during which a licence, permit or other authorization is valid (section 2 of the TLOPA).
The bill also introduces a schedule that sets out the Acts of Parliament and regulations, together with their relevant provisions and regulations, in respect to which time limits or other periods can be suspended or extended. Section 4 of the TLOPA, however, specifies that the TLOPA does not apply to investigations and the proceedings of an offence and to other time limits established under the Corrections and Conditional Release Act.
Section 6 of the TLOPA suspends any limitation period for commencing a court proceeding and any time limit in relation to a court proceeding if those limitation periods or time limits are established through an Act of Parliament. Those suspensions are valid from 13 March 2020 to 13 September 2020, or on any earlier day fixed by order of the Governor in Council on the recommendation of the Minister of Justice (section 6(1)).
Courts may vary the suspension of time limits and make orders respecting the effects of a failure to meet a suspended time limit, such as an order that cancels or varies those effects. The TLOPA also authorizes the Governor in Council to lift a suspension on the recommendation of the Minister of Justice (sections 6(2) to 6(4)).
Section 7 of the TLOPA specifies that a minister responsible for an Act of Parliament or for a regulation listed in the schedule of the TLOPA may make orders to suspend or extend time limits or extend any other periods referred to in those Acts and regulations. They may also make orders to extend a suspension or extension. Ministerial orders do not apply to time limits or other periods that end on or after 31 December 2020, and the total duration of a suspension or extension must neither exceed six months nor continue after 31 December 2020. These orders are also subject to any restrictions and conditions the Governor in Council may establish by regulation on the recommendation of the Minister of Justice (sections 7(1) to 7(4) and 7(7) of the TLOPA).
Ministerial orders may also
The Statutory Instruments Act does not apply to an order made by a minister, a court or the Governor in Council under sections 6(1), 6(2), 6(3) or 6(4), or 7(1) or 7(2) of the TLOPA (section 8 of the TLOPA).
However, an order in council made under sections 6(1) or 6(4) of the TLOPA or a ministerial order made under sections 7(1) or 7(2) of the TLOPA, together with the reasons for making it, must be published:
The order must also be tabled in each house of Parliament within three days after the day on which they are made or, if a house is not sitting, “at the earliest opportunity.” An order tabled in a house of Parliament must also be referred to a committee of that house (section 11 of the TLOPA).
The powers conferred on the Governor in Council and ministers under the TLOPA must not be exercised beyond 30 September 2020 (section 9 of that Act).
Clause 5 amends section 241(4) of the ITA, which sets out the circumstances in which government officials can disclose taxpayer information. New section 241(4)(h.1) of the ITA allows an official to use taxpayer information or share taxpayer information with an official of a department or agency of the Government of Canada if it is necessary for a purpose relating to the administration or enforcement of a program that provides a one-time payment to persons with disabilities for reasons related to COVID-19.
Clause 6 amends and renumbers section 10(2) of the CSA Act. The federal Children's Special Allowances program provides payments to federal and provincial agencies and institutions that care for children. New section 10(2)(a) of the CSA Act states that when information is obtained by or on behalf of the Minister of National Revenue in the course of the administration and enforcement of that Act, it can only be released if it is necessary for the administration or enforcement of certain statutes. New section 10(2)(b) of the CSA Act provides that information may also be released to the Department of Employment and Social Development if the information is required for the administration of a program to provide a one-time payment to persons with disabilities for reasons related to COVID-19.
Clauses 7 to 16 of the bill amend CERBA. CERBA was enacted through Part 2 of the COVID‑19 Emergency Response Act 9 and came into force on 25 March 2020. It authorizes income support payments, which the federal government calls the Canada Emergency Response Benefit (CERB), to workers who suffer a loss of income for reasons related to COVID-19. CERB amounts to $500 per week and, at the time of the introduction of Bill C-17, was payable for up to 16 weeks.10
Clause 7 of the bill amends section 5(1) of CERBA to modify the number of weeks in relation to which a worker may apply for an income support payment. Under the Act, a worker may apply for an income support payment for any four-week period from 15 March 2020 to 3 October 2020. Clause 7 amends and renumbers this provision of CERBA to allow a worker to apply for an income support payment:
These amendments are deemed to have come into force retroactively on 25 March 2020, pursuant to clause 16 of the bill.
Clause 8 of the bill amends section 6 of CERBA, which sets out the eligibility criteria for income support payments under the Act, to reflect the changes to the application provision as discussed in section 2.4.1 of this Legislative Summary. A worker is eligible under section 6(1)(a) of CERBA for an income support payment if they have ceased working for at least 14 consecutive days within a four-week period from 15 March 2020 to 3 October 2020. Under the amended and renumbered provision, a worker is eligible for an income support payment if:
These amendments are also deemed to have come into force retroactively on 25 March 2020, pursuant to clause 16 of the bill.
Clause 8 further amends section 6 of CERBA by expanding the circumstances that would disqualify a worker from receiving income support payments. Specifically, a worker is not eligible for an income support payment if they do not return to work when it is reasonable to do so and the employer re quests it, fail to resume self‑employment when it is reasonable to do so, or decline a reasonable job offer when they are able to work (new sections 6(2.1)(a) to 6(2.1)(c)).
Clause 9 of the bill adds section 8.1 to CERBA to allow a person who has applied for an income support payment to request a review of a decision made in respect of that application. This request for review may be made to the Minister of Employment and Social Development within 30 days of the person having been informed of the decision or within any longer prescribed period (new section 8.1(1)).
Upon completion of the review, the minister must confirm, vary or rescind the decision (new section 8.1(2)), as well as notify the person who requested the review about the outcome (new section 8.1(3)). The minister's confirmation, variation or rescission is final (new section 8.1(4)).
The new provisions regarding a request for review apply regardless of the date on which the decision in respect of the application was made (clause 13).
Clause 11 of the bill amends and renumbers section 13(6) of CERBA to provide that the running of the limitation period regarding monies owing under the Act is suspended, not just while it is prohibited to commence or continue an action against the person, but also while a review of a decision establishing the person's liability for money owing under the Act is pending (new sections 13(6)(a) and 13(6)(b)). The limitation period on actions taken to recover monies owing as set out in section 13(1) of CERBA remains set at six years.
Clause 10 of the bill adds sections 12.1 to 12.6 to CERBA in relation to penalties. Specifically, under new section 12.1(1) of CERBA, the minister may impose a penalty on a person who has applied for an income support payment, or on someone acting on their behalf, for each of the following acts or omissions:
The amount of the penalty for each act or omission may be set by the minister at a maximum of three times the amount of an income support payment for a week (new section 12.1(2)).
The penalty constitutes a debt due to the Crown that may be recovered by the minister (new section 12.5(1)) and that may be subject to garnishment (new section 12.6). However, no interest is payable on a penalty imposed under the Act, pursuant to clause 12 of the bill (amended section 14 of CERBA). Similar provisions exist with regard to monies owing as a result of an erroneous payment or overpayment.
In certain circumstances, such as upon the presentation of new facts, the minister may rescind or reduce the penalty (new section 12.3 of CERBA). The minister may also choose to issue a warning instead of a penalty (new section 12.4). A penalty, however, must not be imposed if a prosecution for the act or omission has been initiated (new section 12.2(a)) or if 36 months have passed since the act or omission occurred (new section 12.2(b)).
Clause 14 of the bill stipulates that new sections 12.1 and 12.4 of CERBA apply regardless of the date on which the act or omission occurred. Similarly, new section 12.6 of the Act (garnishment) applies regardless of the date on which the debt arose (clause 15).
Clause 12 of the bill adds sections 14.1 to 14.3 to CERBA in relation to offences. Specifically, under the new provisions, a person who commits any of the acts or omissions specified in sections 12.1(1)(a) to 12.1(1)(f) of CERBA is guilty of an offence (new sections 14.1(1)(a) to 14.1(1)(f) of CERBA) and will be prosecuted unless a penalty has already been imposed for that conduct (new section 14.1(2)). This person is liable on summary conviction to:
Further, a person who contravenes a provision of CERBA or the regulations, or who delays or obstructs an investigator designated for the enforcement of offences, is guilty of an offence (new sections 14.2(1) and 14.2(2)). Where no penalty is provided, this person is liable on summary conviction to a fine of up to $2,000, to imprisonment for a maximum of six months, or to both (new section 14.2(3)).
An information11 or complaint about an offence under CERBA may be heard, tried or determined by any provincial court judge if the accused is resident, carrying on business, found, apprehended or in custody in the judge's territorial jurisdiction (new section 14.3(3)). Proceedings with respect to an offence may be commenced no later than five years from the day the minister became aware of the subject matter of the prosecution (new section 14.3(4)).
* Notice: For clarity of exposition, the legislative proposals set out in the bill described in this Legislative Summary are stated as if they had already been adopted or were in force. It is important to note, however, that bills may be amended during their consideration by the House of Commons and Senate, and have no force or effect unless and until they are passed by both houses of Parliament, receive Royal Assent, and come into force. [ Return to text ]
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