Income Tax Act — I-3.3 125.7
Definitions 125.7 (1) The following definitions apply in this section and in subsections 163(2.901) and (2.902). baseline remuneration , in respect of an eligible employee of an eligible entity, means the average weekly eligible remuneration, excluding any period of seven or more consecutive days for which the employee was not remunerated, paid to the eligible employee by the eligible entity during the period that (a) begins on January 1, 2020 and ends on March 15, 2020; or (b) if the eligible entity elects, (i) begins on March 1, 2019 and ends on May 31, 2019, in respect of any of the first qualifying period to the third qualifying period, (ii) begins on March 1, 2019 and ends on June 30, 2019, in respect of the fourth qualifying period, unless the eligible entity elects to use the period that begins on March 1, 2019 and ends on May 31, 2019 for that qualifying period, (iii) begins on July 1, 2019 and ends on December 31, 2019, in respect of any of the fifth qualifying period to the thirteenth qualifying period, (iii.1) begins on March 1, 2019 and ends on June 30, 2019, in respect of any of the fourteenth qualifying period to the seventeenth qualifying period, unless the eligible entity elects to use the period that begins on July 1, 2019 and ends on December 31, 2019 for that qualifying period, (iii.2) begins on July 1, 2019 and ends on December 31, 2019, in respect of the eighteenth qualifying period and any subsequent qualifying period, or (iv) if the eligible employee was on leave for any reason mentioned in subsection 12(3) of the Employment Insurance Act or section 2 of the Act respecting parental insurance , CQLR, c. A-29.011 throughout the period that begins on July 1, 2019 and ends on March 15, 2020, begins 90 days prior to the date on which the employee commenced that leave and ends on the day prior to the date on which they commenced their leave, in respect of the fifth qualifying period and any subsequent qualifying period. ( rémunération de base ) base percentage , of an eligible entity for a qualifying period, means (a) for the fifth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 60%, and (ii) in any other case, 1.2 multiplied by the revenue reduction percentage; (b) for the sixth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 60%, and (ii) in any other case, 1.2 multiplied by the revenue reduction percentage; (c) for the seventh qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 50%, and (ii) in any other case, 1 multiplied by the revenue reduction percentage; (d) for the eighth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 40%, and (ii) in any other case, 0.8 multiplied by the revenue reduction percentage; (e) for the ninth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 40%, and (ii) in any other case, 0.8 multiplied by the revenue reduction percentage; (f) for the tenth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 40%, and (ii) in any other case, 0.8 multiplied by the revenue reduction percentage; (g) for the eleventh qualifying period to the seventeenth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 40%, and (ii) in any other case, the percentage determined by the formula 0.8 × A where A is the revenue reduction percentage; (h) for the eighteenth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 35%, and (ii) in any other case, the percentage determined by the formula 0.875 × (A − 10%) where A is the revenue reduction percentage; (i) for the nineteenth qualifying period, (i) if the entity’s revenue reduction percentage is greater than or equal to 50%, 25%, and (ii) in any other case, the