CRA Now Accepting THRP Applications

ACTA is advising that the Canada Revenue Agency (CRA) is now accepting applications for the Tourism and Hospitality Recovery Program (THRP) wage and rent subsidies.

The association’s president, Wendy Paradis said: “We were very pleased to see the government act so quickly to put this in place so that agencies can apply for wage and rent subsidies now.”

Agencies and some independent travel agents can apply for the wage and rent subsidies online with the CRA.

The THRP gives up to 75% wage and rent subsidies to eligible travel, tourism, and hospitality businesses who suffered 40%+ revenue losses.

If more than 50% of your business revenue comes from the following activities, your business is considered a tourism business under the THRP:

• Operating a travel agency or as a tour operator

Acting as an agent in selling travel, tour, and accommodation services for:

• tour operators
• transportation companies
• short-term lodging establishments

Arranging, assembling and marketing tours

There are two minimum financial requirements to be eligible for the THRP:

• You have a 12-month average revenue drop from March 2020 to February 2021 of at least 40%. This is calculated against the same month in the year prior (e.g., September 2019 vs. September 2020). The total number is calculated based on the CEWS claim periods 1 – 13, excluding the revenue drop for either period 10 or 11. The government provides a tool to calculate this number.
• In the period for which you are applying for the THRP, you must have a revenue drop of 40% or greater compared to the same period prior to the pandemic. More details are available here. If in one period of the program your revenue drop is less than 40%, you do not qualify for the THRP in that period, but you may qualify in other periods in which you suffer a 40%+ loss.

Some independent travel agents are eligible for the wage subsidy component of the THRP if they had a payroll account on March 15, 2020 and meet the revenue loss requirements previously described. This means that as of March 15, 2020, you were paying EI and CPP directly to the government every month under your payroll remittance.

Independent travel agents qualify for the rent subsidy component of the THRP if they meet the revenue loss requirements previously described. However, a home office does not qualify as an eligible expense. More information on eligible expenses are available here.

Going forward, ACTA will continue to vigorously advocate for new financial supports to independent travel agents left out of this program.

Said Paradis: “We are continuing to meet with politicians and senior government officials in the Ministry of Finance, Ministry of Tourism, and other key MPs to strongly urge for immediate support to all independent travel agents.”

The Tourism and Hospitality Recovery Program will provide up to 75% wage and rent subsidies to travel agencies with a revenue loss of over 40% between October 24, 2021, and March 12, 2022. The subsidy amount will drop in half between March 13, 2022 and May 7, 2022.

For businesses with a current-month revenue decline of 40-74%, the benefit will match their revenue decline.

For example, if the current-month revenue decline is 60%, the subsidy rate will be 60%. The benefit is capped at 75%, so travel agencies with a current-month revenue decline of > 75% will receive a 75% subsidy.

Currently agencies can apply for Period 22, which is backdated from Oct. 24, 2021 to Nov. 20, 2021.

Starting Jan. 5, 2022, they can apply for Period 23, which is between Nov. 21, 2021 to Dec. 18, 2021.

Periods close to applications 180 days after the end of the claim period.

The CRA has an eligibility tool to help determine if you can access the THRP.

Agencies can call the CRA for questions related to the THRP at 1-800-959-5525.

For more, go to www.acta.ca .