The federal lockdown relief program will be open to an expanded range of applicants who are subject to pandemic-related constraints during the eight-week period from Dec. 19, 2021 to Feb. 12, 2022. Affected businesses in Ontario will additionally be eligible for other property expense discounts and provincial tax deferrals.
As announced late last month, businesses located in jurisdictions where lockdowns have been imposed could temporarily receive federal rent subsidies directly proportional to the percentage decline in their current monthly revenue, up to a maximum of 75 per cent of eligible costs. To qualify, applicants must suffer at least a 25 per cent drop in monthly revenue, operate at least one establishment where capacity has been restricted by at least 50 per cent, and demonstrate that at least 50 per cent of pre-lockdown revenue was generated from sources where pandemic-related restrictions are in place.
Until now, the lockdown portion of both the forerunner Canadian Emergency Rent Subsidy (CERS) and the follow-up program launched on Oct. 24, 2021 covered 25 per cent of eligible property expenses in full lockdown scenarios. Original parameters for the current 28-week iteration of the subsidy also required recipients to show a 40 per cent decline in monthly revenue.
In Ontario, where newly announced restrictions on gatherings will be in place until at least Jan. 26, the provincial government has unveiled plans to offer property tax and utility rebates to affected business operators. More eligibility details and an application portal are promised for later this month, but, as outlined, venues where indoor occupancy is prohibited will be fully reimbursed for eligible costs during the period of restrictions. Venues where the allowable occupancy has been cut in half will be eligible for rebates of 50 per cent.
The Ontario government has also introduced a six-month grace period, until July 1, 2022, for submitting 10 provincially administered taxes including employer health tax, insurance premium tax, fuel tax and beer, wine and spirits tax. An estimated 80,000 businesses can defer payments without penalty or interest, and the provincial government is urging the federal government to implement a similar deferral policy for submitting collected HST, beginning with December 2021.
