3 May 2021 External T.I. 2020-0850231E5 - CEWS - Amount of Wage Subsidy to be Claimed -- summary under Subsection 125.7(2)

Can a qualifying entity apply for a lesser amount than the amount for which it is eligible under s. 125.7(2)? CRA responded:

Variable A of the formula [in s. 125.7(2)] calculates the total of all amounts, each of which is for an eligible employee in respect of a week in a qualifying period. It essentially provides a calculation for any eligible employee, in respect of a week in a qualifying period, subject to the application of a specific paragraph which depends on the qualifying period in question.

Therefore, as the amount is calculated for an eligible employee in respect of a week in the qualifying period, it is our view that the qualifying entity has discretion to claim a lesser amount in its application by excluding any employees from the wage subsidy calculation under subsection 125.7(2) … .

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