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FederalPassed43rd Parliament, 1st Session

Bill C-14 explained in plain English

A second Act respecting certain measures in response to COVID-19

Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
43rd Parliament, 1st Session
Bill number
Bill C-14
Full title
A second Act respecting certain measures in response to COVID-19
Current status
Passed
Latest event
Royal assent received
Last updated
Apr 11, 2020

Official Parliament of Canada snapshot for 43rd Parliament, 1st Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.

Chamber
Parliament of Canada
Current Stage
Royal assent received
Latest Activity
Apr 11, 2020
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

This Act introduces a temporary COVID-19 wage subsidy program for businesses and amends financial administration powers related to financial system stability.

What It Means

Bill C-14, titled "A second Act respecting certain measures in response to COVID-19," introduces a temporary wage subsidy program and makes changes to financial sector legislation. The wage subsidy is available to "eligible entities" based on their revenue and payroll from specific periods in 2019 and 2020. It also amends the Financial Administration Act to allow the Minister to enter into contracts and establish entities to promote financial system stability, with a deadline of September 30, 2020, for these actions. The bill received Royal Assent and is now law.

What This Bill Does
  • Introduces a new section to the Income Tax Act to create a wage subsidy program for eligible businesses and organizations.
  • Amends the Income Tax Act to define terms related to the wage subsidy, including baseline remuneration, current reference period, eligible employee, eligible entity, eligible remuneration, prior reference period, qualifying entity, qualifying period, qualifying revenue, and specified percentage.
  • Establishes rules for calculating the wage subsidy amount based on eligible remuneration and baseline remuneration, with limits.
  • Defines conditions for an entity to be considered a "qualifying entity" for the wage subsidy, including revenue tests and application deadlines.
  • Specifies how "qualifying revenue" is calculated, with options for consolidation, elections, and adjustments.
  • Introduces anti-avoidance rules to prevent artificial reduction of qualifying revenues to access the subsidy.
  • Amends the Income Tax Act regarding the timing of refunds and the application of interest on refunds related to the wage subsidy.
  • Allows the Minister of National Revenue to make wage subsidy payments out of the Consolidated Revenue Fund.
  • Amends the Financial Administration Act to replace provisions related to the Minister's power to enter into contracts to promote financial system stability, including purchasing securities, making loans, and providing guarantees.
  • Amends the Financial Administration Act to allow the Minister to procure the incorporation of a corporation or establish an entity, other than a corporation, for financial system stability, with these powers ending by September 30, 2020.
  • Amends the Canada Deposit Insurance Corporation Act regarding the total principal indebtedness limit for borrowings.
Who Is Affected
  • Eligible entities (corporations, individuals, registered charities, certain exempt organizations, partnerships, and prescribed organizations) that meet specific revenue and payroll criteria.
  • Employees of eligible entities.
  • The Minister of National Revenue (for administration of the wage subsidy).
  • The Minister (for financial system stability measures).
  • The Canada Deposit Insurance Corporation.
Rights, Duties, Or Obligations
  • Eligible entities have the right to apply for and receive a wage subsidy if they meet the specified conditions.
  • Eligible entities have an obligation to provide accurate applications and attestations.
  • The Minister has the discretion to approve refunds and make payments.
  • The Minister has the authority to enter into contracts and establish entities related to financial system stability.
  • The Minister may disclose the names of entities applying for the wage subsidy.
Important Dates
  • The wage subsidy program applies to qualifying periods beginning on or after March 15, 2020, and ending no later than September 30, 2020.
  • Applications for the wage subsidy must be filed before October 2020.
  • Sections 8 and 11 of the Act come into force on October 1, 2020.
  • The powers granted under sections 60.3 and 60.4 of the Financial Administration Act (regarding procuring incorporation or establishing entities) are available during the period beginning on the day these subsections come into force and ending on September 30, 2020.
Financial Or Tax Impacts
  • Creation of a wage subsidy program potentially leading to significant government expenditure.
  • Amendments to the Income Tax Act impact how tax overpayments, refunds, and interest are calculated and administered.
  • The Minister can make payments out of the Consolidated Revenue Fund to facilitate the wage subsidy program.
Enforcement Or Penalties
  • A penalty of 25% of the potential subsidy amount applies to eligible entities that are deemed to have reduced their qualifying revenue through transactions or actions where a primary purpose was to qualify for the subsidy (Section 125.7(6) and 163(2.901) of the Income Tax Act).
  • The Income Tax Act provides for penalties and enforcement related to tax liabilities.
Uncertainties Or Limits
  • The bill refers to 'prescribed' periods, percentages, and organizations, which are not defined within the text and would likely be specified in regulations.
  • The exact amounts of the wage subsidy depend on complex calculations involving baseline and current remuneration, with maximum weekly limits ($847).
  • The effectiveness and application of the anti-avoidance rules depend on interpretation.
  • The powers related to financial system stability under the Financial Administration Act amendments are limited to the period ending September 30, 2020.
Laws Or Regulations Affected
Income Tax Act
amends

Amends the Act by adding a new section (125.7) to introduce a COVID-19 wage subsidy program. It also changes sections related to tax refunds, penalties, and the communication of information.

Source: 2, 3, 4, 5, 6

Subsection 163(2) of the Income Tax Act
amends

Changes how penalties are applied by including references to amounts deemed to be overpayments under the new wage subsidy section.

Source: 4(1)

Section 164 of the Income Tax Act
amends

Allows the Minister to refund overpayments related to the wage subsidy and clarifies interest calculations on these refunds.

Source: 5

Section 241 of the Income Tax Act
amends

Permits the Minister to publicly disclose the names of entities applying for the wage subsidy and allows information sharing for the administration of the Canada Emergency Response Benefit Act.

Source: 6

Financial Administration Act
amends

Replaces sections related to the Minister's authority to enter into contracts for financial system stability and to procure the incorporation or establishment of entities for this purpose. These powers are limited to a period ending September 30, 2020.

Source: 8, 9, 10

Canada Deposit Insurance Corporation Act
amends

Adjusts the total principal indebtedness limit for borrowings by the Corporation, excluding certain borrowings related to the Financial Administration Act as amended by this bill.

Source: 11

Canada Emergency Response Benefit Act
amends

Permits information to be shared with officials for the purpose of administering, enforcing, or formulating policy for this Act.

Source: 6(2)

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Parliamentary Process

Step 1
First reading
Apr 11, 2020
Completed

On April 11, 2020, the Senate completed first, second, and third readings of Bill C-14, a COVID-19 response measure, after adopting a motion to consider its subject matter in a Committee of the Whole.

First reading, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
First reading - Apr 11, 2020

During a special Saturday sitting on April 11, 2020, the Senate considered and passed Bill C-14, a second COVID-19 emergency response act, which received Royal Assent the same day.

On April 11, 2020, the Senate met, adopted procedural motions, heard from the Minister of Finance on the subject matter of Bill C-14, passed the bill at all stages, and received Royal Assent.

Step 2
Second reading
Apr 11, 2020
Completed

The Senate completed all stages of Bill C-14, "A second Act respecting certain measures in response to COVID-19," on April 11, 2020, including a special procedural motion to consider its subject matter before it formally arrived.

Second reading, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Second reading - Apr 11, 2020

On April 11, 2020, the Senate convened, adopted procedural motions, considered the subject matter of Bill C-14 in a Committee of the Whole with the Minister of Finance, and then passed the bill through first, second, and third readings, culminating in Royal Assent for the COVID-19 Emergency Response Bill, No. 2.

The Senate held a special sitting on April 11, 2020, to consider Bill C-14, hearing from the Minister of Finance in Committee of the Whole before proceeding to second and third reading, after which the bill received Royal Assent.

Step 3
Third reading
Apr 12, 2020
Completed

The Senate completed the Third Reading of Bill C-14 on April 11, 2020, after agreeing to a special procedure for its consideration.

Third reading, Apr 12, 2020
End of stage activity, Apr 12, 2020
Chamber sittings
Debate at third reading - Apr 11, 2020

The Senate considered and passed Bill C-14, a second act respecting certain measures in response to COVID-19, which included the Canada Emergency Wage Subsidy, and the bill received Royal Assent on April 11, 2020.

The Senate considered and passed Bill C-14, enacting the Canada Emergency Wage Subsidy, after a debate and Committee of the Whole where the Minister of Finance discussed the bill's provisions and the government's COVID-19 economic response.

Step 1
First reading
Apr 11, 2020
Completed

Bill C-14, concerning COVID-19 measures, completed its first reading in the House of Commons on April 11, 2020, the same day it received royal assent and underwent all readings in the Senate under special procedural rules.

Introduction and first reading, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Introduction and first reading - Apr 11, 2020

On April 11, 2020, the House of Commons held its first reading and debated Bill C-14, a COVID-19 response act, discussing the wage subsidy and other pandemic measures.

Step 2
Second reading
Apr 11, 2020
Completed

On April 11, 2020, Bill C-14, A second Act respecting certain measures in response to COVID-19, completed its second reading in the House of Commons and received royal assent, while the Senate also undertook procedural steps to review its subject matter.

Second reading and referral to committee, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Debate at second reading - Apr 11, 2020

During the House of Commons second reading debate on April 11, 2020, Members of Parliament discussed Bill C-14, which proposed measures in response to COVID-19, focusing on economic support like the wage subsidy and CERB, before the bill was passed.

Step 3
Consideration in committee
Apr 11, 2020
Completed

This record details the "Consideration in committee" stage in the House of Commons for Bill C-14, which received royal assent on April 11, 2020, and outlines specific procedural motions made in the Senate on the same day regarding the bill's subject matter.

Committee report presented without an amendment, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Committee report presented without an amendment - Apr 11, 2020

During a special Saturday sitting on April 11, 2020, the House of Commons debated and ultimately passed Bill C-14, An Act respecting certain measures in response to COVID-19, with members from all parties participating in discussions about pandemic economic support measures.

Step 4
Report stage
Apr 11, 2020
Completed

Bill C-14, concerning COVID-19 measures, completed its procedural stages in the House of Commons and Senate on April 11, 2020, the same day it received Royal Assent.

Concurrence at report stage, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Concurrence at report stage - Apr 11, 2020

The House of Commons debated and passed Bill C-14, "A second Act respecting certain measures in response to COVID-19", amidst discussions on the COVID-19 pandemic and necessary procedural adjustments for physical distancing.

Step 5
Third reading
Apr 11, 2020
Completed

On April 11, 2020, Bill C-14 completed its third reading in the House of Commons and received Royal Assent, becoming law as Statutes of Canada 2020, chapter 6, following procedural steps in the Senate.

Third reading, Apr 11, 2020
End of stage activity, Apr 11, 2020
Chamber sittings
Debate at third reading - Apr 11, 2020

During the third reading debate on Bill C-14, the House of Commons discussed and approved the government's COVID-19 response measures, including the Canada Emergency Wage Subsidy and adjustments to the CERB, with various parties offering input and concerns.

Step 1
Royal assent
Apr 12, 2020
Royal assent, Apr 12, 2020
End of stage activity, Apr 12, 2020
Chamber sittings
Royal assent - Apr 11, 2020

We don't have a plain-language summary for Royal assent yet. The official source linked below is the full record.

We don't have a plain-language summary for Debates of the Senate yet. The official source linked below is the full record.

Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.

Vote Summary

No published recorded division

This bill does not have a published recorded division in the current official sources, so representative-by-representative vote counts are not shown.

Sponsor
Bill Morneau
Sponsor party or district not listed
Jurisdiction
Federal Parliament

No published representative vote breakdown

The current official sources do not publish a recorded division breakdown for this bill, so there is no representative-by-representative table to show.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced