CRA discusses the application of the procedural provisions for adjusting CEWS and CERS claims

After noting that the instructions provided by CRA both on the application for the CEWS benefit and the CRA website indicated that a separate application must be filed for each RP account, the Directorate indicated that such separate applications aggregating to an overall deemed overpayment for a qualifying period should be considered to constitute an application for the qualifying period in the prescribed form and manner as required by para. (a) of the “qualifying entity” definition. It further indicated that it would consider s. 152(8) to apply so that the notices of determination issued by RP account would be valid and binding. Furthermore, offsetting of upward or downward adjustments between various RP accounts through redeterminations might be permitted by CRA, provided that (as required by s. 125.7(5)(a)) the overall deemed overpayment did not exceed the amount claimed in the applications filed within the deadline for the qualifying period.

The Directorate noted that pursuant to s. 152(1.2), the normal reassessment period rules in s. 152(4) also essentially were applicable to redeterminations made to s. 152(3.4). Furthermore, s. 125.7(16) (allowing the Minister the discretion to extend the period for making an application) did not allow the Minister to extend the periods for making such a redetermination in relation to a taxpayer’s request to amend an s. 125.7 application for a qualifying period.

Similar considerations applied to the CRHP and CERS benefits.

Neal Armstrong. Summaries of 8 November 2022 Internal T.I. 2022-0941391I7 under s. 152(3.4), s. 125.7(1) – qualifying entity – (a), s. 125.7(5)(a), s. 152(1.2), s. 125.7(16), and s. 160.1(1).