Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Canada | Publication | April 20, 2020 - 4 PM ET
o To be eligible for Qualifying Period 1 (March 15 to April 11), an employer must have experienced a 15% decline in revenues. This decline can be calculated by an employer by comparing March 2020 revenues to either:
(a) March 2019 revenues; or
(b) average revenues in January and February, 2020
o To be eligible for Qualifying Period 2 (April 12 to May 9), an employer must have experienced a 30% decline in revenues. This decline:
(a) is assumed, if the employer was eligible in Qualifying Period 1; or
(b) can be calculated by comparing April 2020 revenues to either:
i. April 2019 revenues, or
ii. average revenues in January and February, 2020
o To be eligible for Qualifying Period 3 (May 10 to June 6), an employer must have experienced a 30% decline in revenues. This decline:
(a) is assumed, if the employer was eligible in Qualifying Period 2; or
(b) can be calculated by comparing May 2020 revenues to either:
i. May 2019 revenues, or
ii. average revenues in January and February, 2020
For example, if an employee’s pre-crisis wages are $1,000, and the employer recalls him/her to work during a claiming period and pays him/her $800 per week, the employer would be provided CEWS of $750 per week to subsidize the wages of that employee. This is based on the following:
(a) 75% of the weekly amount actually paid to the employee during the crisis is $600 ($800 * .75)
(b) 75% of the employee’s pre-crisis weekly wages is $750 ($1000 * .75). This amount is less than 100% of the weekly amount actually paid to the employee during the claiming period (being $800). Thus, $750 is the “lesser” amount in (b)
The employer is entitled to CEWS equal to the greater of (a) and (b). The applicable amount in (b) ($750) is greater than the amount calculated in (a) ($600). So, CEWS reimburses the employer $750 of the $800 actually paid to the employee in each week of the claiming period.
CEWS for non-arm’s-length employees is calculated slightly differently than the above.
Stay on top of it
The government is expected to release online CEWS application forms in the next couple of weeks. Like other federal benefits currently available to employers, CEWS is likely to be further amended and refined over time. For a summary of other COVID-related benefits for Canadian employers, see our Guide to Government Relief Programs.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Publication
On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
Publication
The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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