On August 5, 2021, CRA provided a definition and explanation of the term “ancillary services” in respect of CERS.
The website states:
Ancillary services facilitate and support the use of the qualifying property.
Some examples of ancillary services could include:
security
traffic control
janitorial or cleaning services
landscaping
waste collection, disposal, and recycling
snow removal
To be an eligible expense, payments for ancillary services must:
be required to be paid by an eligible entity under a qualifying net lease agreement
be paid as regular instalments to the lessor
be for services customarily supplied or rendered in connection with the rental of real property, and
meet the rest of the criteria for eligible rent expenses
Other considerations for determining if a payment made for ancillary services is an eligible expense are the terms of the net lease, the location and nature of the real property, and the type of business renting the real property.
Whether a specific ancillary service is an eligible expense is determined on a case-by-case basis.