Expenses are considered “Eligible Non-Deferrable Expenses” if they were already incurred in January and/or February 2020, or are due to a legal or contractual obligation as at March 1 and cannot be avoided or deferred beyond 2020 even during a period of shut down and depressed revenues as a result of COVID.
What are considered non-deferrable expenses?
Non-Deferrable Expenses include the following categories:
- Wages and other employment expenses to independent (arm's length) third parties;
- Rent or lease payments for real estate used for business purposes;
- Rent or lease payments for capital equipment used for business purposes;
How do you prove non-deferrable expenses?
Supporting documents include invoices, receipts, bank loan agreements showing the schedule of payment, lease or rent agreement, franchise agreements, employment agreements or independent contractors agreements, or any other document which proves the non-eligible deferrable expenses you are including.
