Canada Recovery Benefits Act (S.C. 2020, c. 12, s. 2)

Short Title

Marginal note:Short title

1 This Act may be cited as the Canada Recovery Benefits Act.

Definitions

Marginal note:Definitions

2 The following definitions apply in this Act.

COVID-19

COVID-19 means the coronavirus disease 2019. (COVID-19)

Her Majesty

Her Majesty means Her Majesty in right of Canada. (Sa Majesté)

medical practitioner

medical practitioner means a person who is entitled to practise medicine under the laws of a province. (médecin)

Minister

Minister means the Minister of Employment and Social Development. (ministre)

nurse practitioner

nurse practitioner means a registered nurse who, under the laws of a province, is entitled to practise as a nurse practitioner — or under an equivalent designation — and to autonomously make diagnoses, order and interpret diagnostic tests, prescribe substances and treat patients. (infirmier praticien)

week

week means the period of seven consecutive days beginning on and including Sunday. (semaine)

PART 1Canada Recovery Benefit

Marginal note:Eligibility

• 3 (1) A person is eligible for a Canada recovery benefit for any two-week period falling within the period beginning on September 27, 2020 and ending on October 23, 2021 if

  • (a) they have a valid social insurance number;

  • (b) they were at least 15 years of age on the first day of the two-week period;

  • (c) they were resident and present in Canada during the two-week period;

  • (d) in the case of an application made under section 4 in respect of a two-week period beginning in 2020, they had, for 2019 or in the 12-month period preceding the day on which they make the application, a total income of at least $5,000 from the following sources:

    • (i) employment,

    • (ii) self-employment,

    • (iii) benefits paid to the person under any of subsections 22(1), 23(1), 152.04(1) and 152.05(1) of the Employment Insurance Act,

    • (iv) allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption, and

    • (v) any other source of income that is prescribed by regulation;

  • (e) in the case of an application made under section 4 by a person other than a person referred to in paragraph (e.1) in respect of a two-week period beginning in 2021, they had, for 2019 or for 2020 or in the 12-month period preceding the day on which they make the application, a total income of at least $5,000 from the sources referred to in subparagraphs (d)(i) to (v);

  • (e.1) in the case of an application made under section 4 by a person referred to in paragraph (g) whose benefit period was established on or after September 27, 2020 in respect of a two-week period beginning in 2021, they had, for 2019 or for 2020 or in the 12-month period preceding the day on which they make the application, a total income of at least $5,000 from the sources referred to in subparagraphs (d)(i), (ii), (iv) and (v) and from regular benefits and special benefits, as defined in subsection 2(1) of the Employment Insurance Act;

  • (f) during the two-week period, for reasons related to COVID-19, other than for reasons referred to in subparagraph 17(1)(f)(i) and (ii), they were not employed or self-employed or they had a reduction of at least 50% or, if a lower percentage is fixed by regulation, that percentage, in their average weekly employment income or self-employment income for the two-week period relative to

    • (i) in the case of an application made under section 4 in respect of a two-week period beginning in 2020, their total average weekly employment income and self-employment income for 2019 or in the 12-month period preceding the day on which they make the application, and

    • (ii) in the case of an application made under section 4 in respect of a two-week period beginning in 2021, their total average weekly employment income and self-employment income for 2019 or for 2020 or in the 12-month period preceding the day on which they make the application;

  • (g) no benefit period, as defined in subsection 2(1) of the Employment Insurance Act, was established or could have been established in respect of the person in respect of any week that falls within the two-week period or, if such a benefit period was established on or after September 27, 2020 in respect of the person in respect of any week that falls within the two-week period,

    • (i) the person was paid regular benefits, as defined in that subsection, for the maximum number of weeks for which those benefits may be paid in that benefit period under Part I of that Act, or

    • (ii) the person was paid regular benefits and special benefits, as defined in that subsection, for the maximum number of weeks for which both those benefits may be paid in that benefit period under Part I of that Act;

  • (h) no income referred to in any of the following subparagraphs was paid or was payable to the person in respect of any week that falls within the two-week period:

    • (i) allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption,

    • (ii) a Canada recovery sickness benefit or a Canada recovery caregiving benefit,

    • (ii.1) benefits, as defined in subsection 2(1) of the Employment Insurance Act, and

    • (iii) any other income that is prescribed by regulation;

  • (i) they sought work during the two-week period, whether as an employee or in self-employment;

  • (j) they did not place undue restrictions on their availability for work during the two-week period, whether as an employee or in self-employment;

  • (k) if they have not previously received any benefits under this Part, they have not,

    • (i) on or after September 27, 2020, quit their employment or voluntarily ceased to work, unless it was reasonable to do so, and

    • (ii) in the two-week period in respect of which their application under section 4 relates and in any of the four two-week periods beginning on September 27, 2020 that are immediately before that two-week period

      • (A) failed to return to their employment when it was reasonable to do so if their employer had made a request,

      • (B) failed to resume self-employment when it was reasonable to do so, or

      • (C) declined a reasonable offer to work in respect of work that would have started during the two-week period;

  • (l) if they have previously received any benefits under this Part, they have not,

    • (i) on or after the first day of the first two-week period for which any benefits were paid to them under this Part, quit their employment or voluntarily ceased to work, unless it was reasonable to do so, and

    • (ii) in the two-week period in respect of which their application under section 4 relates and in any of the four two-week periods beginning on September 27, 2020 that are immediately before that two-week period

      • (A) failed to return to their employment when it was reasonable to do so if their employer had made a request,

      • (B) failed to resume self-employment when it was reasonable to do so, or

      • (C) declined a reasonable offer to work;

  • (m) they were not, at any time during the two-week period, required to quarantine or isolate themselves under any order made under the Quarantine Act as a result of entering into Canada or

    • (i) if they were required to do so at any time during the two-week period, the only reason for their having been outside Canada was to

      • (A) receive a medical treatment that has been certified by a medical practitioner to be necessary, or

      • (B) accompany a person who has been certified by a medical practitioner to be incapable of travelling without the assistance of an attendant and whose only reason for having been outside Canada was to receive a medical treatment that has been certified by a medical practitioner to be necessary, or

    • (ii) if, as a result of entering into Canada, they were required to isolate themselves under such an order at any time during the two-week period, they are a person to whom the requirement to quarantine themselves under the order would not have applied had they not been required to isolate themselves; and

  • (n) they have filed a return of income under Part I of the Income Tax Act in respect of the 2019 or 2020 taxation year, other than a return of income filed under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4) of that Act.

• Marginal note:Income from self-employment

  (2) For the purpose of paragraphs (1)(d) to (f), income from self-employment is revenue from the self-employment less expenses incurred to earn that revenue.

• Marginal note:Program of instruction or training

  (3) For the purpose of paragraph (1)(j), a person has not placed undue restrictions on their availability for work if they attended during the two-week period a course or program of instruction or training that they were referred to by a provincial government or body.

• Marginal note:Application of paragraph (1)(n)

  (3.1) Paragraph (1)(n) applies only in respect of

  • (a) a person who has already been paid a Canada recovery benefit for 42 weeks or more; and

  • (b) a person who has never applied under section 4 for any two-week period beginning before July 18, 2021.

• Marginal note:Regulations

  (4) The Governor in Council may, by regulation, fix a lower percentage for the purpose of paragraph (1)(f).

Marginal note:Application

• 4 (1) A person may, in the form and manner established by the Minister, apply for a Canada recovery benefit for any two-week period falling within the period beginning on September 27, 2020 and ending on October 23, 2021.

• Marginal note:Limitation

  (2) No application is permitted to be made on any day that is more than 60 days after the end of the two-week period to which the benefit relates.

Marginal note:Attestation

• 5 (1) Subject to subsections (2) to (5), a person must, in their application, attest that they meet each of the eligibility conditions referred to in paragraphs 3(1)(a) to (n).

• Marginal note:Exception — paragraphs 3(1)(d) and (e)

  (2) A person is not required to attest to their income under paragraphs 3(1)(d) and (e) if they have previously received any benefit under this Act and they attest to that fact.

• Marginal note:Exception — paragraph 3(1)(k)

  (3) A person is not required to attest that they meet the eligibility condition referred to in paragraph 3(1)(k) if they have previously received any benefit under this Part and they attest to that fact.

• Marginal note:Exception — paragraph 3(1)(l)

  (4) A person is not required to attest that they meet the eligibility condition referred to in paragraph 3(1)(l) if they have never previously received any benefit under this Part and they attest to that fact.

• Marginal note:Exception — paragraph 3(1)(m)

  (5) A person is not required to attest that they meet the eligibility condition referred to in paragraph 3(1)(m) if their application is made before January 11, 2021.

Marginal note:Obligation to provide information

6 An applicant must provide the Minister with any information that the Minister may require in respect of the application.

Marginal note:Payment of benefit

7 The Minister must pay a Canada recovery benefit to a person who makes an application under section 4 and who is eligible for the benefit.

Marginal note:Amount of payment

• 8 (1) Subject to subsection (2), the amount of a Canada recovery benefit for a week is

  • (a) in respect of a person who applies or has applied under section 4 for any two-week period beginning before July 18, 2021, $500 for a maximum of 42 weeks and $300 for every subsequent week; and

  • (b) in respect of a person who has never applied under section 4 for any two-week period beginning before July 18, 2021, $300 for a week beginning on or after that date.

• Marginal note:Exception

  (1.1) Despite subsection (1), if a person referred to in paragraph (1)(b) subsequently applies under section 4 for any two-week period beginning before July 18, 2021, the person is deemed to be a person referred to in paragraph (1)(a) except for every two-week period for which the person was paid $300 for each week.

• Marginal note:Repayment

  (2) If a person who has received a Canada recovery benefit or the benefit referred to in section 9.1 has income of more than $38,000 for 2020 or for 2021, the person must repay an amount equal to 50 cents for every dollar of income earned in that year above $38,000 of income, up to the total amount of those benefits received by them in the year, which total amount is calculated without taking into account any erroneous payment or overpayment, and that amount constitutes a debt due to Her Majesty and the debt is payable and may be recovered by the Minister as of the balance-due day, as defined in subsection 248(1) of the Income Tax Act, for the year.

• Marginal note:Definition of income

  (3) In subsection (2), income, in respect of a person, means the amount that would be their income for 2020 or for 2021, determined under Part I of the Income Tax Act if no amount were

  • (a) included in respect of amounts paid as benefits under this Part;

  • (b) deductible under paragraphs 20(1)(ww) and 60(v.1), (v.2), (w), (y) and (z) of that Act;

  • (c) included in respect of a gain from a disposition of property to which section 79 of that Act applies; or

  • (d) included under paragraph 56(1)(q.1) or subsection 56(6) of that Act.

• Marginal note:Application of Income Tax Act provisions

  (4) Sections 150, 150.1, 151, 152, 158 to 160.1, 161 and 161.3 to 167, Division J of Part I and sections 220 to 226, subsection 227(10), sections 239, 243 and 244 and subsections 248(7) and (11) of the Income Tax Act apply to subsection (2) with any modifications that the circumstances require, except that, in the application of those provisions,

  • (a) “Act” is to be read as “subsection 8(2) of the Canada Recovery Benefits Act”;

  • (b) “taxpayer” is to be read as “person”;

  • (c) “tax” and “taxes” are to be read as “amount to be repaid under subsection 8(2) of the Canada Recovery Benefits Act”; and

  • (d) “under this Part” is to be read as “under subsection 8(2) of the Canada Recovery Benefits Act”.