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COVID-19 Emergency Response Act (S.C. 2020, c. 5)

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Assented to 2020-03-25

COVID-19 Emergency Response Act

S.C. 2020, c. 5

Assented to 2020-03-25

An Act respecting certain measures in response to COVID-19

RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act respecting certain measures in response to COVID-19”.

SUMMARY

Part 1 implements, as part of the response to the coronavirus disease 2019 (COVID-19), certain income tax measures by

(a) introducing a one-time additional payment under the GST/HST tax credit;

(b) providing temporary additional amounts under the Canada Child Benefit;

(d) providing eligible small employers a temporary wage subsidy for a period of three months.

Part 2 enacts the Canada Emergency Response Benefit Act to authorize the making of income support payments to workers who suffer a loss of income for reasons related to the coronavirus disease 2019.

Part 3 enacts the Public Health Events of National Concern Payments Act, which authorizes payments to be made out of the Consolidated Revenue Fund in relation to public health events of national concern. It also provides for the repeal of the Act on September 30, 2020.

Part 4 amends the Canada Deposit Insurance Corporation Act to allow the Minister of Finance to increase the deposit insurance coverage limit until September 30, 2020.

Part 5 amends the Canada Mortgage and Housing Corporation Act to authorize the Minister of Finance, with the approval of the Governor in Council, to make payments to the Canada Mortgage and Housing Corporation out of the Consolidated Revenue Fund for the purpose of increasing the Corporation’s capital.

Part 6 amends the Export Development Act to broaden the purposes for which Export Development Canada is established and to permit the Minister of Finance, until September 30, 2020, to determine the amount of Export Development Canada’s authorized capital as well as the amount of certain limits applicable to Export Development Canada. It broadens the transactions for which the Minister of International Trade, with the concurrence of the Minister of Finance, may grant an authorization. It also provides for the suspension of certain provisions of the Export Development Canada Exercise of Certain Powers Regulations.

Part 7 amends the Federal-Provincial Fiscal Arrangements Act to authorize additional payments to the provinces and territories for the fiscal year beginning on April 1, 2019.

Part 8 amends Part IV of the Financial Administration Act to authorize the Minister of Finance, until September 30, 2020, to borrow money under that Act for certain payments without the authorization of the Governor in Council, and it also amends that Part to extend the time for the tabling of the report on that Minister’s plans in relation to the management of the public debt. It also amends Part IV.1 of that Act to authorize that Minister to make payments to an entity and to procure the incorporation of a corporation or establish an entity, other than a corporation, for the purposes of promoting the stability or maintaining the efficiency of the financial system in Canada. Finally, it makes related amendments to the Borrowing Authority Act and a consequential amendment to the Canada Deposit Insurance Corporation Act.

Part 9 amends the Food and Drugs Act to, among other things, authorize the Governor in Council to make regulations

(a) requiring persons to provide information to the Minister of Health; and
(b) preventing shortages of therapeutic products in Canada or alleviating those shortages or their effects, in order to protect human health.

Part 10 amends the Canada Labour Code to, among other things, create a regime which provides for a leave related to COVID-19 of up to 16 weeks. It also amends that Act to provide for the repeal of that regime and to provide for a quarantine leave under the medical leave regime.

Part 11 amends the National Housing Act to increase, for a period of five years, the maximum total for the outstanding insured amounts of all insured loans.

Part 12 amends the Patent Act to, among other things, provide that the Commissioner must, on the application of the Minister of Health, authorize the Government of Canada and any person specified in the application to make, construct, use and sell a patented invention to the extent necessary to respond to a public health emergency that is a matter of national concern.

Part 13 amends the Canada Student Loans Act to provide that, during the period that begins on March 30, 2020 and ends on September 30, 2020, no interest is payable by a borrower on a guaranteed student loan and no amount on account of principal or interest is required to be paid by the borrower.

Part 14 amends the Farm Credit Canada Act to authorize the Minister of Finance to determine the limit on the amounts that the Minister of Finance may pay to Farm Credit Canada out of the Consolidated Revenue Fund.

Part 15 amends the Canada Student Financial Assistance Act to provide that, during the period that begins on March 30, 2020 and ends on September 30, 2020, no interest is payable by a borrower on a student loan and no amount on account of principal or interest is required to be paid by the borrower.

Part 16 amends the Business Development Bank of Canada Act to authorize the Minister of Finance to determine the limit on the aggregate of the paid-in capital — and any related contributed surplus — of the Business Development Bank and any proceeds prescribed as equity.

Part 17 amends the Apprentice Loans Act to provide that, during the period that begins on March 30, 2020 and ends on September 30, 2020, no interest is payable by a borrower on an apprentice loan and no amount on account of principal or interest is required to be paid by a borrower.

Division 1 of Part 18 amends the Employment Insurance Act to give the Minister of Employment and Social Development the power to make interim orders for the purpose of mitigating the economic effects of COVID-19.

Division 2 of Part 18 provides that every reference in any provision of the Employment Insurance Act and of regulations made under it to a certificate issued by a medical doctor or other medical professional or medical practitioner or by a nurse practitioner is deemed to be of no effect and that any benefit that would have been payable to a claimant had such a certificate been issued is payable to the claimant if the Canada Employment Insurance Commission is satisfied that the claimant is entitled to the benefit.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Marginal note:Short title

1 This Act may be cited as the COVID-19 Emergency Response Act.

PART 1Income Tax Act and Income Tax Regulations

R.S., c. 1 (5th Supp.)Income Tax Act

2 (1) Section 122.5 of the Income Tax Act is amended by adding the following after subsection (3):
- Marginal note:COVID-19 — additional deemed payment
  (3.001) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula
  0.5(A − B)
  where
  A
  is the total of
  (a) $580,
  (b) $580 for the qualified relation, if any, of the individual in relation to the specified month,
  (c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $580,
  (d) $306 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
  (e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $306, and
  (f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $306 and 2% of the amount, if any, by which the individual’s income for the taxation year exceeds $9,412; and
  B
  is 5% of the amount, if any, by which the individual’s adjusted income for the taxation year in relation to the specified month exceeds $37,789.
(2) Section 122.5 of the Act is amended by adding the following after subsection (3.01):
- Marginal note:COVID-19 — shared-custody parent
  (3.02) Notwithstanding subsection (3.001), if an eligible individual is a shared-custody parent (within the meaning assigned by section 122.6, but with the words qualified dependant in that section having the meaning assigned by subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.001) to have been paid during the specified month is equal to the amount determined by the following formula:
  0.5(A + B)
  where
  A
  is the amount determined by the formula in subsection (3.001), calculated without reference to this subsection; and
  B
  is the amount determined by the formula in subsection (3.001), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6.
(3) Section 122.5 of the Act is amended by adding the following after subsection (4):
- Marginal note:COVID-19 — month specified
  (4.1) Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.001) is May 2020 (or an earlier month designated by the Minister) and the taxation year is the 2018 taxation year.

3 Section 122.61 of the Act is amended by adding the following after subsection (1):

Marginal note:COVID-19 — additional amount
(1.01) If the month referred to in subsection (1) is May 2020, each amount expressed in dollars referred to in paragraphs (a) and (b) of the description of E in subsection (1) is deemed, for that month, to be equal to that amount (as adjusted under subsection (5)) plus an additional amount of $3,600. For greater certainty, the adjustment in subsection (5) shall not take into account this additional amount.

4 Section 146.3 of the Act is amended by adding the following after subsection (1.3):

Marginal note:Adjusted minimum amount for 2020
(1.4) The minimum amount under a retirement income fund for 2020 is 75% of the amount that would, in the absence of this subsection, be the minimum amount under the fund for the year.
Marginal note:Exceptions
(1.5) Subsection (1.4) does not apply to a retirement income fund for the purposes of subsections (5.1) and 153(1) and the definition periodic pension payment in section 5 of the Income Tax Conventions Interpretation Act.

5 (1) Paragraph 152(1)(b) of the Act is replaced by the following:
- (b) the amount of tax, if any, deemed by subsection 120(2) or (2.2), 122.5(3) or (3.001), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(2) Paragraph 152(1.2)(d) of the Act is replaced by the following:
- (d) if the Minister determines the amount deemed by subsection 122.5(3) or (3.001) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(3) Paragraph 152(4.2)(b) of the Act is replaced by the following:
- (b) redetermine the amount, if any, deemed by subsection 120(2) or (2.2), 122.5(3) or (3.001), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

6 (1) Section 153 of the Act is amended by adding the following after subsection (1.01):
- Marginal note:COVID-19 — deemed remittance
  (1.02) For the purposes of this Act, if an eligible employer pays, at a particular time that is within the eligible period, eligible remuneration in respect of which a particular amount is required to be deducted or withheld under subsection (1), then the eligible employer is deemed to have remitted to the Receiver General at the particular time in respect of the particular amount, an amount equal to the least of
  - (a) the amount determined by the formula
    A − B
    where
    A
    is the prescribed amount, and
    B
    is the total of all amounts, each of which is an amount deemed to have been remitted by the eligible employer under this subsection prior to the particular time (and, if more than one such payment is made at the particular time, the eligible employer may designate the order in which the amounts are considered to have been paid),
  - (b) the amount determined by the formula
    C × D
    where
    C
    is the prescribed percentage, and
    D
    is the amount of the eligible remuneration, and
  - (c) the amount determined by the formula
    E × F
    where
    E
    is the prescribed amount, and
    F
    is the total number of eligible employees employed by the eligible employer during the eligible period.
- Marginal note:Definitions — subsection (1.02)
  (1.03) The following definitions apply for the purposes of this subsection and subsection (1.02).
  eligible employee
  eligible employee means an individual who is employed in Canada. (employé admissible)
  eligible employer
  eligible employer means a person or partnership that
  (a) employs one or more eligible employees;
  (b) has, on March 18, 2020, a business number in respect of which the person or partnership is registered with the Minister to make remittances required under this section; and
  (c) is any of
  (i) a Canadian-controlled private corporation for the purposes of section 125 that
  (A) would have a business limit for its last taxation year that ended before the start of the eligible period greater than nil, if the amount determined for paragraph 125(5.1)(b) were deemed to be nil, or
  (B) if the corporation does not have a taxation year that ended before the start of the eligible period, would meet the condition in clause (A) if its taxation year ended immediately before the start of the eligible period,
  (ii) an individual (other than a trust),
  (iii) a partnership, all of the members of which are described in subparagraphs (i) to (iii) or (v),
  (iv) a person exempt from tax under Part I because of paragraph 149(1)(l), and
  (v) a registered charity. (employeur admissible)
  eligible period
  eligible period means the period beginning on March 18, 2020 and that ends on June 19, 2020. (période d’admissibilité)
  eligible remuneration
  eligible remuneration means salary, wages or other remuneration paid to an eligible employee during the eligible period. (rémunération admissible)
- Marginal note:Deemed remittances under subsection (1.02)
  (1.04) For greater certainty, amounts deemed under subsection (1.02) to have been remitted to the Receiver General are deemed to not be held in trust under subsections 227(4) and (4.1).

C.R.C., c. 945Income Tax Regulations

7 Section 8506 of the Income Tax Regulations is amended by adding the following after subsection (7):

(7.1) The minimum amount for a member’s account under a money purchase provision of a registered pension plan for 2020 is 75% of the amount that would, in the absence of this subsection, be the minimum amount for the account for the year.

PART 2Canada Emergency Response Benefit Act

Marginal note:Enactment of Act

8 The Canada Emergency Response Benefit Act is enacted as follows:

An Act respecting income support payments for workers (coronavirus disease 2019)

Marginal note:Short title

1 This Act may be cited as the Canada Emergency Response Benefit Act.

Marginal note:Definitions

2 The following definitions apply in this Act.

COVID-19

COVID-19 means the coronavirus disease 2019. (COVID-19)

Minister

Minister means the Minister of Employment and Social Development. (ministre)

week

week means the period of seven consecutive days beginning on and including Sunday. (semaine)

worker

worker means a person who is at least 15 years of age, who is resident in Canada and who, for 2019 or in the 12-month period preceding the day on which they make an application under section 5, has a total income of at least $5,000 — or, if another amount is fixed by regulation, of at least that amount — from the following sources:

(a) employment;
(b) self-employment;
(c) benefits paid to the person under any of subsections 22(1), 23(1), 152.04(1) and 152.05(1) of the Employment Insurance Act; and
(d) allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption. (travailleur)

Marginal note:Regulations — definition of worker

3 With the consent of the Minister of Finance, the Minister may, by regulation, fix an amount for the purposes of the definition worker in section 2.

Marginal note:Payment

4 The Minister must make an income support payment to a worker who makes an application under section 5 and who is eligible for the payment.

Marginal note:Application

5 (1) A worker may, in the form and manner established by the Minister, apply for an income support payment for any four-week period falling within the period beginning on March 15, 2020 and ending on October 3, 2020.
Marginal note:Limitation
(2) No worker is permitted to file an application after December 2, 2020.
Marginal note:Information
(3) An applicant must provide the Minister with any information that the Minister may require in respect of the application.

Marginal note:Eligibility

6 (1) A worker is eligible for an income support payment if
- (a) the worker, whether employed or self-employed, ceases working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment; and
- (b) they do not receive, in respect of the consecutive days on which they have ceased working,
  - (i) subject to the regulations, income from employment or self-employment,
  - (ii) benefits, as defined in subsection 2(1) of the Employment Insurance Act,
  - (iii) allowances, money or other benefits paid to the worker under a provincial plan because of pregnancy or in respect of the care by the worker of one or more of their new-born children or one or more children placed with them for the purpose of adoption, or
  - (iv) any other income that is prescribed by regulation.
Marginal note:Exclusion
(2) An employed worker does not cease work for the purpose of paragraph (1)(a) if they quit their employment voluntarily.
Marginal note:Regulations
(3) The Minister may, by regulation,
- (a) exclude a class of income from the application of subparagraph (1)(b)(i); and
- (b) prescribe any other income for the purposes of subparagraph (1)(b)(iv).

Marginal note:Amount of payment

7 (1) The amount of an income support payment for a week is the amount fixed by regulation for that week.
Marginal note:Regulations
(2) With the consent of the Minister of Finance, the Minister may, by regulation, fix the amount of an income support payment for a week specified in the regulation.
Marginal note:Distinguishing — classes
(3) Regulations made under subsection (2) may distinguish among different classes of workers.

Marginal note:Maximum number of weeks

8 (1) The maximum number of weeks for which income support payments may be made to a worker is 16 weeks or, if another number of weeks is fixed by regulation, that number of weeks.
Marginal note:Regulations
(2) With the consent of the Minister of Finance, the Minister may, by regulation, fix a number of weeks for the purpose of subsection (1).

Marginal note:Social Insurance Number

9 The Minister is authorized to collect and use, for the purposes of the administration and enforcement of this Act, the Social Insurance Number of a person who makes an application under this Act.

Marginal note:Provision of information and documents

10 The Minister may, for any purpose related to verifying compliance or preventing non-compliance with this Act, by notice served personally or by confirmed delivery service, require that any person provide any information or document within the reasonable time that is stated in the notice.

Marginal note:Payments cannot be charged, etc.

11 An income support payment

(a) is not subject to the operation of any law relating to bankruptcy or insolvency;
(b) cannot be assigned, charged, attached or given as security;
(c) cannot be retained by way of deduction, set-off or compensation under any Act of Parliament other than this Act; and
(d) is not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.

Marginal note:Return of erroneous payment or overpayment

12 (1) If the Minister determines that a person has received an income support payment to which the person is not entitled, or an amount in excess of the amount of such a payment to which the person is entitled, the person must repay the amount of the payment or the excess amount, as the case may be, as soon as is feasible.
Marginal note:Recovery as debt due to Her Majesty
(2) The amount of the erroneous payment or overpayment, as determined by the Minister, constitutes a debt due to Her Majesty in right of Canada, as of the day on which it was paid, that may be recovered by the Minister.
Marginal note:Certificate of default
(3) The amount of any debt referred to in subsection (2) may be certified by the Minister, and registration of the certificate in the Federal Court has the same effect as a judgment of that Court for the amount specified in the certificate and all related registration costs.

Marginal note:Limitation or prescription period

13 (1) Subject to subsections (2) to (7), no action or proceedings are to be taken to recover money owing under this Act after the expiry of the six-year limitation or prescription period that begins on the day on which the money becomes due and payable.
Marginal note:Deduction, set-off or compensation
(2) Money owing by a person under this Act may be recovered at any time by way of deduction from, set-off against or compensation against any sum of money, including an income support payment under this Act, that may be due or payable by Her Majesty in right of Canada to the person, other than an amount payable under section 122.61 of the Income Tax Act.
Marginal note:Acknowledgment of liability
(3) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5), the time during which the limitation or prescription period has run before the acknowledgment does not count in the calculation of that period.
Marginal note:Acknowledgment after expiry of limitation or prescription period
(4) If a person’s liability for money owing under this Act is acknowledged in accordance with subsection (5) after the expiry of the limitation or prescription period, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.
Marginal note:Types of acknowledgment
(5) An acknowledgment of liability means
- (a) a promise to pay the money owing, made by the person or their agent, mandatary or other representative;
- (b) an acknowledgment of the money owing, made by the person or their agent, mandatary or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;
- (c) a part payment by the person or their agent, mandatary or other representative of any money owing; or
- (d) an acknowledgment of the money owing, made in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts by the person, their agent, mandatary or other representative or the trustee or administrator.
Marginal note:Limitation or prescription period suspended
(6) The running of a limitation or prescription period in respect of money owing under this Act is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under this Act.
Marginal note:Enforcement proceedings
(7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Marginal note:No interest payable

14 No interest is payable on any amount owing to Her Majesty in right of Canada under this Act as a result of an erroneous payment or overpayment.

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Date modified:: 2025-12-18

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