Budget 2021: Repayment of Wage Subsidy to be required in some circumstances

The Budget papers provide that public corporations which received the Canada Emergency Wage Subsidy will, in some instances, be required to repay part or all of that subsidy.

Specifically, where the total compensation paid to a company’s senior executives is greater in 2021 than it was in 2019, the company will be required to repay the difference, or the amount of wage subsidy received, whichever is less.

This measure applies to wage subsidy amounts received for periods after June 5, 2021.

For more information on the 2021 Federal Budget, please click here.