Principal Issues: 1. How does subsection 125.7(4.2) adjust qualifying revenue with respect to an asset sale? 2. Which of the two companies, the seller or the acquirer, can claim the CEWS for the qualifying period?
Position: 1. The qualifying revenue of the seller that is reasonably attributable to the acquired assets is to be included in the qualifying revenue of the acquirer and subtracted from the qualifying revenue of the seller for the prior reference period or the current reference period, as the case may be, for the qualifying period. 2. Where all other conditions are met, both the seller and acquirer can consider their respective eligibility for the CEWS for the qualifying period.