Bill C-9 · 43th Parliament · Justin Trudeau
An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)
Government bill. Became law.
- IntroducedNov. 2, 2020
- Debated in principleNov. 5, 2020
- Studied by a committeeDone
- Passed its first chamberNov. 6, 2020
- Passed the second chamberNov. 18, 2020
- Became lawNov. 19, 2020
Leading supporters
Ranked by the part each played: who is responsible for the bill, who carried it, and who spoke for it most.
- Justin TrudeauPrime Minister
Who carries this bill
Arrows run from the person responsible to those who answer to them on this bill. The critic leads the Senate’s scrutiny and answers to no one on it.
What it set out to do
On 2 November 2020, the Deputy Prime Minister and Minister of Finance introduced Bill C-9, An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy), in the House of Commons and it was given first reading. Bill C-9 amends the Income Tax Act to revise the eligibility criteria, as well as the level of subsidization, under the Canada Emergency Wage Subsidy (CEWS) as part of the response to the coronavirus disease 2019. It also extends the CEWS to June 30, 2021. The enactment further amends the Income Tax Act to introduce the Canada Emergency Rent Subsidy (CERS) in order to support those hardest hit by the coronavirus disease 2019. This subsidy provides relief in respect of rent and interest on debt obligations incurred to acquire real property used by businesses, charities and not-for-profit organizations in the course of their businesses or other activities. The rent subsidy is effective as of September 27, 2020.
Summary by the Library of Parliament.
Where members stand
Votes and debate for this bill have not been read yet.
How it changed on the way
20% of the text as introduced was changed or removed by the time it became law (4,817 words introduced, 4,851 passed).
moderate changeintent mostly kept
The core wage and rent subsidy rules stayed intact but Parliament added a formal royal recommendation for spending. Minor punctuation and spacing fixes were also made to the text.
- A royal recommendation from the Governor General was inserted before the summary.
After: “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 to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) ".”
- Date of the bill and procedural line were updated from introduction to later stage.
Before: “2020 11 2 DEPUTY PRIME MINISTER AND MINISTER OF FINANCE 90962 SUMMARY”
After: “2020 11 19 13 2020 90962 RECOMMENDATION”
How precisely it is written
mostly preciseChallenging the law: HardDisputing a charge: Moderate
The bill relies on detailed formulas, fixed dollar and percentage thresholds, and cross-referenced defined terms to calculate rent and wage subsidies. A few phrases and regulatory powers still leave room for argument over exact application.
Open to argument
“primarily in Canada throughout the qualifying period”
The word 'primarily' introduces a factual judgment rather than a bright-line test.“all or substantially all of the fair market value”
The phrase 'substantially all' is a common but imprecise quantitative standard.“can reasonably be regarded as contributing to the use and enjoyment”
The reasonableness standard invites differing interpretations of the facts.
Clear-cut
“if the eligible entity’s revenue reduction percentage is greater than or equal to 70%, 65%”
Exact numerical thresholds and resulting percentages leave no interpretive gap.“the lesser of $75,000 and the total of all amounts paid”
A hard dollar cap combined with an arithmetic total produces a clear maximum.“A × B ÷ C where A is 25% or a prescribed percentage, B is the number of days”
The formula supplies an objective arithmetic method once the inputs are known.
Discretion. Several top-up and base percentages may be set by regulation, and the Minister can prescribe additional qualifying periods or percentages under paragraph (d) of the qualifying-period definition.
Challenging the law itself. The provisions confer benefits rather than impose criminal or regulatory restrictions, so vagueness or overbreadth claims under the Charter would face a high threshold.
Disputing a charge under it. Complex interlocking definitions and reference-period calculations allow factual disputes over revenue figures and qualifying expenses even when the formulas themselves are clear.
Read by a language model from the royal assent text; every quoted phrase appears in the bill. A reading of the drafting, not legal advice.
Did it work?
partly effective
Bill C-9 successfully enabled rapid disbursement of over $100 billion in CEWS and billions in CERS to support employers and workers in hardest-hit sectors during the pandemic, with post-payment audits showing high compliance rates around 94%. However, Auditor General audits highlighted insufficient pre-payment controls and data limitations that prevented full assessment of whether the programs met objectives like employee retention and rent relief, with an estimated $15.5 billion in CEWS potentially requiring further investigation for ineligibility.
- Office of the Auditor General of Canada, Report 7—Canada Emergency Wage Subsidy (2021)auditFinance Canada provided sound analysis for CEWS adjustments and CRA delivered the program quickly, but gaps in data and controls meant reliance on costly post-payment audits.
- Office of the Auditor General of Canada, Report 10—Specific COVID-19 Benefits (2022)auditCEWS supported employers in sectors with biggest employment declines, but limited applicant data made it difficult to assess overall effectiveness or confirm eligibility for an estimated $15.5 billion in payments.
- House of Commons Standing Committee on Public Accounts, Report on OAG Report 7 (2021)reviewRecommended a full economic evaluation of wage subsidy programs by March 2022 and enhanced post-payment verification reporting, noting partial initial analysis but sound subsequent adjustments.
- Canada Revenue Agency, CEWS Post-payment audits – Status Update (March 2023)evaluationCompleted audits of $5.53 billion in claims found 94.1% approved, with $325 million denied or adjusted, indicating generally high compliance despite ongoing verifications.
Who lobbied on it
No lobbying registration naming this bill is loaded.
Stages and dates from LEGISinfo.