Repayments for publicly traded corporations

As an eligible employer that is a publicly traded corporation or is controlled by a publicly traded corporation, you may need to repay a wage subsidy you received.

On this page

• What the executive compensation repayment rule is and who it applies to
• What executive remuneration is
• Calculating the amount you need to repay
  • Determining an executive compensation repayment amount as part of a group
  • Executive compensation repayment amount calculation for periods 17 to 23
  • Executive compensation repayment amount calculation for periods 24 to 28
  • Repayment due to taxable dividends for periods 24 to 28
• How to repay excess wage subsidy amounts you received
• Examples

What the executive compensation repayment rule is and who it applies to

If you are a publicly traded corporation or you have a public parent corporation (you are controlled by a publicly traded corporation), you may need to repay all or part of the following wage subsidy amounts you received for claim periods 17 to 28 (claim periods beginning after June 5, 2021):

• Canada Emergency Wage Subsidy (CEWS)
• Tourism and Hospitality Recovery Program (THRP) – wage portion only
• Hardest-Hit Business Recovery Program (HHBRP) – wage portion only

Whether you need to repay a wage subsidy you received depends on the claim period for which you received wage subsidy.

Claim periods 17 to 23 (claims covering June 6 to December 18, 2021)

You may need to repay a wage subsidy you received if your executive remuneration (or your public parent corporation’s, if you have one) for specified executives for the 2021 calendar year exceeds the executive remuneration for specified executives for the 2019 calendar year.

Claim periods 24 to 28 (claims covering December 19, 2021, to May 7, 2022)

You may need to repay a wage subsidy you received if:

• Your executive remuneration (or your public parent corporation’s, if you have one) for specified executives for the 2022 calendar year exceeds the executive remuneration for specified executives for the 2019 calendar year

• You had a carry-forward executive remuneration amount for claim periods 17 to 23

• You paid taxable dividends in any claim period from 24 to 28 to an individual who was a holder of your common shares

If any of these situations apply to you, you are subject to the executive compensation repayment rule. You must calculate an executive compensation repayment amount for each repayment time period to determine if you need to repay wage subsidy amounts you received.

What executive remuneration is

For the purposes of calculating the executive compensation repayment amount, executive remuneration is generally determined according to the laws under which you (or your public parent corporation) are required to make disclosures to shareholders. If you have a public parent corporation, use the amount of executive remuneration required to be disclosed by your public parent corporation.

If you (or your public parent corporation) are required to make disclosures to shareholders under Canadian securities laws, executive remuneration is the total amount of compensation that is required to be disclosed in the Statement of Executive Compensation for Named Executive Officers ("Statement of Executive Compensation"), pursuant to the Canadian Securities Administrators’ National Instrument 51-102, Continuous Disclosure Obligations.

Generally, this amount is the total compensation reported for the:

• Chief Executive Officer
• Chief Financial Officer, and
• three other most highly compensated executives

If you (or your public parent corporation) are required to make a similar disclosure to shareholders under the laws of another jurisdiction (but are not required to make disclosures to shareholders under Canadian securities laws), executive remuneration is the amount of total compensation reported in that similar disclosure (limited to the five most highly compensated individuals).

If you (or your public parent corporation) are not required to make disclosures to shareholders under Canadian securities laws or a similar disclosure under the laws of another jurisdiction, executive remuneration is the amount that you would report if you were required to make disclosures to shareholders under Canadian securities laws, using the method for preparing the Statement of Executive Compensation.

Calculating executive remuneration for a calendar year

Executive remuneration is determined by calendar year. If your fiscal period does not coincide with the calendar year, you must prorate the executive remuneration according to the number of days in the fiscal period that fall within that particular calendar year.

Calculating the amount you need to repay

The amount you need to repay is different for the two repayment time periods:

For claim periods 17 to 23 you must calculate an executive compensation repayment amount.

For claim periods 24 to 28 you must calculate two amounts, to see which is greater:

• an executive compensation repayment amount
• the total amount of applicable taxable dividends you paid to an individual who was a holder of your common shares

Determining an executive compensation repayment amount as part of a group

If you are part of a group of eligible employers, your executive compensation repayment amount is calculated according to the percentage assigned to you under a group agreement.

For the purpose of the executive compensation repayment amount calculation, the group of eligible employers for a repayment time period includes all of the following, if that eligible employer received a wage subsidy amount for the repayment time period:

• you
• your public parent corporation
• each other eligible employer controlled in that claim period by you or your public parent corporation

The group of eligible employers must complete an agreement (form RC224) for one or both of the following repayment time periods:

• claim periods 17 to 23
• claim periods 24 to 28

An agreement allows the members of the group to determine their executive compensation repayment amount for the repayment time period. Each member of the group must enter into an agreement for the repayment time period, filed in prescribed form and manner.

Related form: Executive Compensation Repayment Amount Agreement (RC224)

Assigning percentages under an agreement

The agreement must assign a percentage (including 0%) to each member of the group. The percentages assigned to group members under the agreement must total 100%.

No member of the group can be assigned a percentage that would create a greater repayment obligation than the total of its wage subsidy amounts for the repayment time period. If no agreement is made, the default percentage is 100%.

The percentage allocated to each member of the group may be different for each repayment time period.

Executive compensation repayment amount calculation for claim periods 17 to 23

For claim periods 17 to 23, the executive compensation repayment amount for an eligible employer is determined by the formula A × B, where:

A is:

• the percentage assigned to the eligible employer under a group agreement, or
• in any other case, 100%

B is the lesser of C or D, where:

• C is the total of all amounts, each of which is a wage subsidy amount for claim periods 17 to 23 received in respect of active eligible employees of:
  • the eligible employer
  • the public parent corporation, if any, and
  • each other eligible employer controlled in the claim period by the eligible employer or the public parent corporation, if any
• D is the greater of either zero or:
  • the executive remuneration of the eligible employer—or of the public parent corporation, if any—for 2021
  • minus the amount of such executive remuneration for 2019

Carry-forward executive remuneration amount for claim periods 17 to 23

If the executive remuneration for 2021 minus the amount from 2019 (amount D) is higher than the wage subsidy received (amount C) in the calculation above, you have a carry-forward executive remuneration amount for claim periods 17 to 23. You must include this carry-forward executive remuneration amount when calculating your executive compensation repayment amount for claim periods 24 to 28. The carry-forward executive remuneration amount for periods 17 to 23 equals D minus C.

If all of the executive remuneration for 2021 minus the amount for 2019 is set off against the wage subsidy amounts received for claim periods 17 to 23 (C is higher than D), you do not have a carry-forward executive remuneration amount to include in your executive compensation repayment amount calculation for claim periods 24 to 28.

Executive compensation repayment amount calculation for claim periods 24 to 28

The calculation of the executive compensation repayment amount for claim periods 24 to 28 is similar to the calculation for claim periods 17 to 23. However, the calculation for claim periods 24 to 28 also includes any carry-forward executive remuneration amount from claim periods 17 to 23.

For claim periods 24 to 28, the executive compensation repayment amount for an eligible employer equals A × B, where:

A is:

• the percentage assigned to the eligible employer under a group agreement, or
• in any other case, 100%

B is the lesser of C or D, where:

• C is the total of all amounts, each of which is a wage subsidy amount for claim periods 24 to 28 received in respect of active eligible employees of:
  • the eligible employer
  • the public parent corporation, if any, and
  • each other eligible employer controlled in the claim period by the eligible employer or the public parent corporation, if any
• D is the total, if it is greater than zero, of:
  • any carry-forward executive remuneration amount for claim periods 17 to 23
  • plus the executive remuneration of the eligible employer—or of the public parent corporation, if any—for 2022
  • minus the amount of such executive remuneration for 2019

Repayment due to taxable dividends for periods 24 to 28

You may need to repay a wage subsidy you received if you:

• paid taxable dividends in any claim period from 24 to 28 to an individual who was a holder of your common shares, and
• received a wage subsidy amount for any claim period from 24 to 28

If you are in this situation, you must determine if the total amount of dividends you paid in claim periods 24 to 28 to an individual who was a holder of your common shares is greater than your executive compensation repayment amount for claim periods 24 to 28. The greater amount will determine how much wage subsidy you must repay.

How to repay excess wage subsidy amounts you received

If you have an executive compensation repayment amount, or, for claim periods 24 to 28, if you paid taxable dividends to an individual who was a holder of your common shares, you have effectively received more wage subsidy than you were entitled to. In other words, you have received an excess wage subsidy amount.

The excess wage subsidy amount you need to repay is determined separately for the two repayment time periods:

• claim periods 17 to 23
• claim periods 24 to 28

For each repayment time period, you must repay later wage subsidy amounts first, until the total excess wage subsidy amount has been subtracted from your wage subsidy claims.

You will need to:

• adjust your wage subsidy claims for the relevant claim periods to remove the excess wage subsidy amount at line C
• repay the excess wage subsidy amount you received

An excess wage subsidy amount is deemed to have become payable to the Receiver General on the date it was paid to you.

Calculating excess wage subsidy amounts for claim periods 17 to 23

If your executive compensation repayment amount for claim periods 17 to 23 is equal to the total amounts of wage subsidy you received for claim periods 17 to 23, you must return all of the wage subsidy payments you received for these periods.

Otherwise, you must calculate your excess wage subsidy amount for each payment you received for claim periods 17 to 23, with the later wage subsidy amounts being reduced first. The excess wage subsidy amount in respect of a particular claim period is the lesser of:

• The amount of wage subsidy for any claim period from 17 to 23 paid on that particular payment date

• The amount determined by the formula A − B, where:

  • A is the eligible employer’s executive compensation repayment amount for claim periods 17 to 23
  • B is the total of all excess wage subsidy amounts for claim periods 17 to 23 determined after the date of that wage subsidy payment

Calculating excess wage subsidy amounts for claim periods 24 to 28

If your executive compensation repayment amount for claim periods 24 to 28 or the total amount of taxable dividends you paid to an individual who was a holder of your common shares for claim periods 24 to 28 (whichever is greater) is equal to the total amounts of wage subsidy you received for claim periods 24 to 28, you must return all of the wage subsidy payments you received for these periods.

Otherwise, you must calculate your excess wage subsidy amount for each payment you received for claim periods 24 to 28, with the later amounts being reduced first. The excess wage subsidy amount in respect of a particular payment is the lesser of:

• The amount of wage subsidy for any claim period from 24 to 28 paid on that particular payment date

• The amount determined by the formula A − B, where:

  • A is the greater of:
    • the eligible employer’s executive compensation repayment amount for claim periods 24 to 28, or
    • the total amount of taxable dividends paid by the eligible employer to an individual who was a holder of its common shares
  • B is the total of all excess wage subsidy amounts for claim periods 24 to 28 determined after the date of that wage subsidy payment

Examples

Example 1: Claim periods 17 to 23

ABC Corporation is an eligible employer whose shares of capital stock are listed on the Toronto Stock Exchange. It does not control any other eligible employers, and it is not controlled by another public corporation.

ABC Corporation’s fiscal period for Canadian tax and securities law purposes coincides with the calendar year. In 2019, the total amount of compensation that it was required to disclose in its Statement of Executive Compensation was $4,500,000. In 2021, the total amount of compensation that it was required to disclose was $8,000,000.

During claim periods 17 to 21, for which ABC Corporation claimed the wage subsidy, it had no eligible employees on leave with pay. These are the wage subsidy amounts ABC Corporation was paid in respect of those claim periods and the dates on which those amounts were paid:

ABC Corporation's wage subsidy amounts for claim periods 17 to 23

Claim period	Wage subsidy amount	Payment date
17	$1,250,000	July 8, 2021
18	$1,050,000	August 5, 2021
19	$950,000	September 2, 2021
20	$750,000	September 30, 2021
21	$250,000	October 27, 2021
22	No claim made	N/A
22	No claim made	N/A
Total	$4,250,000

ABC Corporation’s executive compensation repayment amount for claim periods 17 to 23 is $3,500,000, which is the lesser of:

• the total of all amounts, each of which is a wage subsidy amount paid for claim periods 17 to 23 (i.e. $1,250,000 + $1,050,000 + $950,000 + $750,000 + $250,000 = $4,250,000), and
• the amount by which its 2021 executive remuneration exceeded its 2019 executive remuneration (i.e. $8,000,000 − $4,500,000 = $3,500,000)

Under the executive compensation repayment rule for claim periods 17 to 23, the wage subsidy amounts paid to ABC Corporation will be reduced by its executive compensation repayment amount, with the later wage subsidy amounts being reduced first.

ABC’s excess wage subsidy repayment by claim period for periods 17 to 23

Claim period	Amount of wage subsidy for the claim period (X)	Payment date (particular date)	Executive compensation repayment amount (A)	Total excess wage subsidy paid after the particular date (B)	(Y) = (A)-(B)	Excess wage subsidy for the date: the lesser of (X) and (Y)
21	$250,000	Oct 27, 2021	$3,500,000	$0	$3,500,000	$250,000
20	$750,000	Sep 30, 2021	$3,500,000	$250,000	$3,250,000	$750,000
19	$950,000	Sep 2, 2021	$3,500,000	$1,000,000	$2,500,000	$950,000
18	$1,050,000	Aug 5, 2021	$3,500,000	$1,950,000	$1,550,000	$1,050,000
17	$1,250,000	Jul 8, 2021	$3,500,000	$3,000,000	$500,000	$500,000

Explanation

1. The entirety of ABC Corporation’s wage subsidy amount paid on October 27, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $250,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $3,500,000). This excess wage subsidy amount of $250,000 is deemed to have become payable to the Receiver General by ABC Corporation on October 27, 2021.
2. The entirety of ABC Corporation’s wage subsidy amount paid on September 30, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $750,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $3,250,000 = $3,500,000 − $250,000). This excess wage subsidy amount of $750,000 is deemed to have become payable to the Receiver General by ABC Corporation on September 30, 2021.
3. The entirety of ABC Corporation’s wage subsidy amount paid on September 2, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $950,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $2,500,000 = $3,500,000 − $250,000 − $750,000). This excess wage subsidy amount of $950,000 is deemed to have become payable to the Receiver General by ABC Corporation on September 2, 2021.
4. The entirety of ABC Corporation’s wage subsidy amount paid on August 5, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $1,050,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $1,550,000 = $3,500,000 − $250,000 − $750,000 - $950,000). This excess wage subsidy amount of $1,050,000 is deemed to have become payable to the Receiver General by ABC Corporation on August 5, 2021.
5. ABC Corporation’s wage subsidy amount paid on July 8, 2021, is reduced by $500,000, which is the lesser of the wage subsidy amount paid on that date (i.e. $1,250,000) and the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $500,000 = $3,500,000 − $250,000 − $750,000 - $950,000 − $1,050,000). This excess wage subsidy amount of $500,000 is deemed to have become payable to the Receiver General by ABC Corporation on July 8, 2021.

After the application of the executive compensation repayment rule, ABC Corporation is entitled to a wage subsidy amount of $750,000 in respect of claim periods 17 to 21, in contrast to the $4,250,000 in wage subsidy amounts that were originally paid to it for those claim periods.

ABC Corporation will change the line C amounts of their wage subsidy claims for claim periods 17 to 21 accordingly:

Wage subsidy claim adjustments for ABC corporation, periods 17 to 21

Claim period application	Previous line C	New line C
21	$250,000	$0
20	$750,000	$0
19	$950,000	$0
18	$1,050,000	$0
17	$1,250,000	$750,000

Example 2: Claim periods 17 to 23

XYZ Corporation is an eligible employer whose shares of capital stock are listed on the Toronto Stock Exchange. It does not control any other eligible employers, and is it not controlled by another public corporation.

XYZ Corporation’s fiscal period for Canadian tax and securities law purposes coincides with the calendar year. In 2019, the total amount of compensation that it was required to disclose in its Statement of Executive Compensation was $6,000,000. In 2021, the total amount of compensation that it was required to disclose was $12,000,000.

During claim periods 17 to 23, for which XYZ Corporation claimed a wage subsidy, it had no eligible employees on leave with pay. These are the wage subsidy amounts XYZ Corporation was paid in respect of those claim periods and the dates on which those amounts were paid:

XYZ Corporation's wage subsidy amounts for claim periods 17 to 23

Claim period	Wage subsidy amount	Payment date
17	$1,250,000	July 8, 2021
18	$1,050,000	August 5, 2021
19	$950,000	September 2, 2021
20	$750,000	September 30, 2021
21	$500,000	October 27, 2021
22	$350,000	November 24, 2021
23	$150,000	December 22, 2021
Total	$5,000,000

XYZ Corporation’s executive compensation repayment amount for claim periods 17 to 23 is $5,000,000, which is the lesser of:

• the total of all amounts, each of which is a wage subsidy amount for claim periods 17 to 23 (i.e. $1,250,000 + $1,050,000 + $950,000 + $750,000 + $500,000 + $350,000 + $150,000 = $5,000,000), and
• the amount by which its 2021 executive remuneration exceeded its 2019 executive remuneration (i.e. $12,000,000 − $6,000,000 = $6,000,000)

Under the executive compensation repayment rule for claim periods 17 to 23, the wage subsidy amounts paid to XYZ Corporation will be reduced by its executive compensation repayment amount, with the later wage subsidy amounts being reduced first:

XYZ’s excess wage subsidy repayment by claim period for periods 17 to 23

Claim period	Amount of wage subsidy for the claim period (X)	Payment date (particular date)	Executive compensation repayment amount (A)	Total excess wage subsidy paid after the particular date (B)	(Y) = (A)−(B)	Excess wage subsidy for the date: the lesser of (X) and (Y)
23	$150,000	Dec 22, 2021	$5,000,000	$0	$5,000,000	$150,000
22	$350,000	Nov 24, 2021	$5,000,000	$150,000	$4,850,000	$350,000
21	$500,000	Oct 27, 2021	$5,000,000	$500,000	$4,500,000	$500,000
20	$750,000	Sep 30, 2021	$5,000,000	$1,000,000	$4,000,000	$750,000
19	$950,000	Sep 2, 2021	$5,000,000	$1,750,000	$3,250,000	$950,000
18	$1,050,000	Aug 5, 2021	$5,000,000	$2,700,000	$2,300,000	$1,050,000
17	$1,250,000	Jul 8, 2021	$5,000,000	$3,750,000	$1,250,000	$1,250,000

Explanation

1. The entirety of XYZ Corporation’s wage subsidy amount paid on December 22, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $150,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $5,000,000). This excess wage subsidy amount of $150,000 is deemed to have become payable to the Receiver General by XYZ Corporation on December 22, 2021.
2. The entirety of XYZ Corporation’s wage subsidy amount paid on November 24, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $350,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $4,850,000 = $5,000,000 − $150,000). This excess wage subsidy amount of $350,000 is deemed to have become payable to the Receiver General by XYZ Corporation on November 24, 2021.
3. The entirety of XYZ Corporation’s wage subsidy amount paid on October 27, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $500,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $4,500,000 = $5,000,000 − $150,000 − $350,000). This excess wage subsidy amount of $500,000 is deemed to have become payable to the Receiver General by XYZ Corporation on October 27, 2021.
4. The entirety of XYZ Corporation’s wage subsidy amount paid on September 30, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $750,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $4,000,000 = $5,000,000 − $150,000 − $350,000 − $500,000). This excess wage subsidy amount of $750,000 is deemed to have become payable to the Receiver General by XYZ Corporation on September 30, 2021.
5. The entirety of XYZ Corporation’s wage subsidy amount paid on September 2, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $950,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $3,250,000 = $5,000,000 − $150,000 − $350,000 − $500,000 − $750,000). This excess wage subsidy amount of $950,000 is deemed to have become payable to the Receiver General by XYZ Corporation on August 5, 2021.
6. The entirety of XYZ Corporation’s wage subsidy amount paid on August 5, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $1,050,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $2,300,000 = $5,000,000 − $150,000 − $350,000 − $500,000 − $750,000 − $950,000). This excess wage subsidy amount of $1,050,000 is deemed to have become payable to the Receiver General by XYZ Corporation on August 5, 2021.
7. The entirety of XYZ Corporation’s wage subsidy amount paid on July 8, 2021, is reduced because the wage subsidy amount paid on that date (i.e. $1,250,000) is equal to the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $1,250,000 = $5,000,000 − $150,000 − $350,000 − $500,000 − $750,000 − $950,000 − $1,050,000). This excess wage subsidy amount of $1,250,000 is deemed to have become payable to the Receiver General by XYZ Corporation on July 8, 2021.

After the application of the executive compensation repayment rule for claim periods 17 to 23, XYZ Corporation is not entitled to any wage subsidy amount in respect of claim periods 17 to 23, in contrast to the $5,000,000 in wage subsidy amounts that were originally paid to it for those claim periods.

XYZ Corporation will change the line C amounts of their wage subsidy claims for claim periods 17 to 23 to $0 accordingly.

Carry-forward executive remuneration amount

XYZ Corporation will have a carry-forward executive remuneration amount equal to $1,000,000 (i.e. $6,000,000 − $5,000,000). This is because XYZ Corporation’s executive remuneration from 2021 minus the amount from 2019 (i.e., $6,000,000) is higher than the wage subsidy received for claim periods 17 to 23 (i.e., $5,000,000). This carry-forward executive remuneration amount will be considered in the executive compensation repayment amount calculation for claim periods 24 to 28. Find out how XYZ Corporation will incorporate this carry-forward executive remuneration amount into their calculation at example 3

Example 3: Claim periods 24 to 28, with a carry-forward executive remuneration amount for claim periods 17 to 23

XYZ Corporation is an eligible employer whose shares of capital stock are listed on the Toronto Stock Exchange. It does not control any other eligible employers, and it is not controlled by another public corporation. XYZ Corporation did not pay any dividends in claim periods 24 to 28.

XYZ Corporation’s fiscal period for Canadian tax and securities law purposes coincides with the calendar year. In 2019, the total amount of compensation that it was required to disclose in its Statement of Executive Compensation was $6,000,000. In 2022, the total amount of compensation that it was required to disclose was $10,500,000.

XYZ Corporation has repaid the wage subsidy it claimed for claim periods 17 to 23 and had a carry-forward executive remuneration amount of $1,000,000. XYZ Corporation claimed a wage subsidy in each of claim periods 24 to 28. During these claim periods, it had no eligible employees on leave with pay. These are the wage subsidy amounts XYZ Corporation was paid in respect of those claim periods and the dates on which those amounts were paid:

XYZ Corporation's wage subsidy amounts for claim periods 24 to 28

Claim period	Wage subsidy amount	Payment date
24	$1,800,000	January 19, 2022
25	$1,300,000	February 16, 2022
26	$1,100,000	March 16, 2022
27	$850,000	April 13, 2022
28	$750,000	May 11, 2022
Total	$5,800,000

XYZ Corporation’s executive compensation repayment amount is $5,500,000, for claim periods 24 to 28, which is the lesser of:

• the total of all amounts, each of which is a wage subsidy amount for claim periods 24 to 28 (i.e. $1,800,000 + $1,300,000 + $1,100,000 + $850,000 + $750,000 = $5,800,000), and
• the total carry-forward executive remuneration amount for claim periods 17 to 23, plus its 2022 executive remuneration, minus its 2019 executive remuneration (i.e. $1,000,000 + $10,500,000 − $6,000,000 = $5,500,000)

Under the executive compensation repayment rule for claim periods 24 to 28, the wage subsidy amounts paid to XYZ Corporation will be reduced by the greater of its executive compensation repayment amount and the total amount of taxable dividends it paid in claim periods 24 to 28 to an individual who was a holder of its common shares, with the later wage subsidy amounts being reduced first:

XYZ’s excess wage subsidy repayment by claim period for periods 24 to 28

Claim period	Amount of wage subsidy for the claim period (X)	Payment date (particular date)	Executive compensation repayment amount (A)Footnote 1	Total excess wage subsidy paid after the particular date (B)	(Y) = (A)-(B)	Excess wage subsidy for the date: the lesser of (X) and (Y)
Note 1 If XYZ had paid taxable dividends to individuals who were holders of its common shares in any claim period from 24 to 28, the greater of either the total amount of such dividends paid or its executive compensation repayment amount would be used to calculate the amount it needs to repay.
28	$750,000	May 11, 2022	$5,500,000	$0	$5,500,000	$750,000
27	$850,000	Apr 13, 2022	$5,500,000	$750,000	$4,750,000	$850,000
26	$1,100,000	March 16, 2022	$5,500,000	$1,600,000	$3,900,000	$1,100,000
25	$1,300,000	Feb 16, 2022	$5,500,000	$2,700,000	$2,800,000	$1,300,000
24	$1,800,000	Jan 19, 2022	$5,500,000	$4,000,000	$1,500,000	$1,500,000

Explanation

1. The entirety of XYZ Corporation’s wage subsidy amount paid on May 11, 2022, is reduced because the wage subsidy amount paid on that date (i.e. $750,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $5,500,000). This excess wage subsidy amount of $750,000 is deemed to have become payable to the Receiver General by XYZ Corporation on May 11, 2022.
2. The entirety of XYZ Corporation’s wage subsidy amount paid on April 13, 2022, is reduced because the wage subsidy amount paid on that date (i.e. $850,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $4,750,000 = $5,500,000 − $750,000). This excess wage subsidy amount of $850,000 is deemed to have become payable to the Receiver General by XYZ Corporation on April 13, 2022.
3. The entirety of XYZ Corporation’s wage subsidy amount paid on March 16, 2022, is reduced because the wage subsidy amount paid on that date (i.e. $1,100,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $3,900,000 = $5,500,000 − $750,000 − $850,000). This excess wage subsidy amount of $1,050,000 is deemed to have become payable to the Receiver General by XYZ Corporation on August 5, 2021.
4. The entirety of XYZ Corporation’s wage subsidy amount paid on February 16, 2022, is reduced because the wage subsidy amount paid on that date (i.e. $1,300,000) is less than the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $2,800,000 = $5,500,000 − $750,000 − $850,000 − $1,100,000). This excess wage subsidy amount of $1,300,000 is deemed to have become payable to the Receiver General by XYZ Corporation on February 16, 2022.
5. XYZ Corporation’s wage subsidy amount paid on January 19, 2022, is reduced by $1,500,000, which is the lesser of the wage subsidy amount paid on that date (i.e. $1,800,000) and the executive compensation repayment amount that has not yet reduced a wage subsidy amount (i.e. $1,500,000 = $5,500,000 − $750,000 − $850,000 − $1,100,000 − $1,800,000). This excess wage subsidy amount of $1,500,000 is deemed to have become payable to the Receiver General by XYZ Corporation on Januray 19, 2022.

After the application of the executive compensation repayment rule for claim periods 24 to 28, XYZ Corporation will be entitled to a wage subsidy amount of $300,000 in respect of claim periods 24 to 28, in contrast to the $5,800,000 in wage subsidy amounts that were originally paid to it for those claim periods.

XYZ Corporation will change the line C amounts of their wage subsidy claims for claim periods 24 to 28 accordingly:

Subsidy claim adjustments for XYZ corporation, claim periods 24 to 28

Claim period application	Previous line C	New line C
28	$750,000	$0
27	$850,000	$0
26	$1,100,000	$0
25	$1,300,000	$0
24	$1,800,000	$300,000

Publicly traded corporation

Taxable dividends

Common shares