Blog


New economic stimulus and clarifications on the “old” one.   Recently updated !

It has been a week since our last post. During this week the government announced a number of new economic measures aimed at softening the economic impact of COVID-19. Bill C-13 which contains measures discussed in our prior post was passed by the parliament on March 25. Here are our thoughts, observations and clarifications. This is by no measure a complete summary as we only focusing on programs about which received most questions.  75% Wage Subsidy This measure officially known as The Canada Emergency Wage Subsidy has generated lots of excitement.  The details of the program were announced on April 1. Here is a quick summary:   The subsidy applies a rate of 75% of the first $58,700 normally earned by employees. This amounts to up to a maximum of $847 per week.  The program will be in place for a 12-week period, from March 15 to June 6, 2020.  To qualify a […]


Government’s COVID-19 Economic Response Plan   Recently updated !

As a result of COVID-19, the Federal Government enacted a series of short-term measures to assist businesses with the effects of this pandemic. Here are some clarifications to these measures as well as the information on how to apply for them. Whether you are an existing client or have general questions about these measures, please contact us. Grants This is the single most popular topic we have received questions about over the last 10 days. For the majority of companies, this stems from the need for short term financing and mitigation of cancelled or delayed contracts (particularly for B2B companies). Sadly, the federal government has been quiet on this front.  The government has not requested any mandate changes from organizations, other than to expedite COVID-19 related R&D. We suspect this may change in the near future. Most active grants available at the moment require co-investment from accredited investors, taking on […]


Liberals Drop a SR&ED Surprise   Recently updated !

On March 19, the Liberal government announced the details of the 2019 Federal budget. One of the big surprises in the budget was the announcement that the program will be enhanced for CCPC going forward. Buried in the various innovation announcements, the government announced a change to the rules around accessing the 35% enhanced ITC rate for SR&ED. For fiscal years ending after March 31, 2019, the enhanced rate will be accessible to all CCPC regardless of taxable income, but still subject to taxable capital rules. This change is specifically aimed at growing Canadian companies who have exceeded the $800,000 taxable income threshold which previously eliminated access to the enhanced ITC rate. Now companies can continue to scale up their companies without handicapping their ability to generate a profit. This initiative by the government is welcome, as it puts Canadian companies in a stronger position to compete globally and incentivize […]