CRA has stated in Guide RC4088 General Index of Financial Information (GIFI) (released on June 28, 2021) and the T4012 T2 Corporation - Income Tax Guide 2020 (released on June 14, 2021) that COVID-19 related assistance should be included on line 8242 (Subsidies and grants) of the GIFI (Schedule 125). In addition, each of the COVID-19 subsidies received should be specifically identified on line 605 (description of other items, for example, “CEWS $15,500”), with the amount on line 295 being “0” on Schedule 1.
This marks a significant departure from previous guidance released by CRA, which stated that COVID-19 related assistance should be reported on line 295 of Schedule 1 and not on line 8242 (Subsidies and grants) of the GIFI.
No guidance was provided in respect of past filings done in a manner inconsistent with the new directions.