The federal government will soon ask Canadians who were ineligible to receive benefits during the pandemic lockdowns to make repayments.
It has been more than a year since the Canada Emergency Response Benefits, known as CERB, was launched by the federal government. Many Canadians who received the $2,000 payment benefited tremendously.
“I was really happy when the government introduced the CERB,” said Kimberly Brown, a resident of Brampton, expressing her gratitude for the benefits she had received during the lockdowns.
“I was able to get groceries and pay my rent,” she said.
The Canada Revenue Agency said it provided ways for individuals to get the Canada Emergency Recovery Benefit (CERB) as quickly as possible, but some people who were ineligible also received the payments.
A notice to repay the benefits may appear on their online accounts with the Canada Revenue Agency after an audit revealed more than 800,000 people who received CERB were ineligible.
The benefits were offered between m March 2020 and were extended to January 2021. They gave Canadians a payment of $18,000 if individuals applied for all periods. The benefits are considered taxable and those ineligible could face consequences in receiving payments.
Brown was among those who received payments for all periods.
“There was no way I would be able to survive, especially if my employer had closed some of their businesses for good,” she said.
Brown is an employee with the Aldo group, a Canadian retailer that reported bankruptcy during the pandemic and closed more than half of its stores in Ontario.
She is, however, required to repay a portion of what she received in benefits.
“I was so confused. I thought I was eligible for the benefits,” she said. “How will I repay this?”
Christopher Doody, spokesperson for the CRA, told Humber Et Cetera the agency acknowledges some applicants made errors when applying for benefits or applied for benefits they weren’t eligible for.
Doody said the CRA understands the hardship Canadians faced during the pandemic lockdowns and that it may have changed their financial status because businesses were forced to close their doors.
A repayment arrangement was introduced by the agency to give Canadians time to pay based on their financial status.
“If an individual is unable to repay ineligible CERB or CESB amounts, we will evaluate their situation and follow-up when their financial circumstances change,” Doody said.
Canadians who applied for the CERB because of their financial situation and were later determined to be ineligible will be required to pay the money back without penalties or interest.
In order to repay ineligible amounts, people are asked to refer to the notice on their “MyCRA” account.
“For situations where an individual can pay and refuses to reach a payment arrangement, the CRA may take legal action,” Doody said.
This situation may be frightening for some Canadians, but it brought a sigh of relief for Brown, as she now knows her status and what she will be doing towards repaying.
The CRA implores the public to call and inquire about their status.