Downtown Hockey – Tax Court of Canada finds that CEWS redeterminations are made on a qualifying period basis even if effected pursuant to a global notice

The taxpayer appealed, under the informal procedure, a single notice of redetermination that reduced CEWS claims for 14 qualifying periods (as defined in s. 125.7) from $92,243.50 to nil. At issue was whether the $25,000 monetary limit under s. 18.12(1) of the Tax Court of Canada Act (the TCC Act) applied.

In finding that, pursuant to s. 152(3.4), redeterminations for qualifying periods were made for individual qualifying periods rather than in the aggregate, and that the phrase "aggregate of all amounts" in s. 2.1 of the TCCA refers to the amount for each individual qualifying period rather than to the cumulative disputed amounts, Sorenson J. stated (at paras. 21-22):

… CEWS entitlement is determined on individual qualifying periods, and even if the results of multiple determinations are set out on one document, the determinations remain separate events.

It is well accepted in income tax appeals that s. 2.1 of the TCC Act applies to each taxation year and assessment thereof, even if multiple years are appealed together in one notice of appeal. … The same rationale applicable to income tax assessments must logically apply to CEWS determinations, namely, individual notices of determination may be appealed in a single notice of appeal without coalescing.

Neal Armstrong. Summary of Downtown Hockey League Ltd. v. The King, 2025 TCC 92 under s. 152(3.4).