Does an eligible entity compute its qualifying revenue using the same approaches and elections for both the CEWS and the CERS for a particular qualifying period? CRA indicated:
- “The revenue reduction is the same calculation for both subsidies and must be calculated using the same rules (that is, the same elections and approaches) that are applicable to a specific qualifying period for an eligible entity.” Therefore, an election, if made for a qualifying period, must be used in calculating qualifying revenue for both the CEWS and the CERS.
- For example, if Corporations A and B have jointly elected that the qualifying revenue of the affiliated group be determined on a consolidated basis under s. 125.7(4)(b) for qualifying period 9 for CEWS purposes (i.e., period 2 for CERS purposes) then, even if Corporation B did not apply for the CEWS for that period, it must determine qualifying revenue on a consolidated basis for that qualifying period in determining its revenue reduction for CERS purposes.