It's no scam – the CRA wants their CERB back
If you received COVID-19 benefit money from the Canada Revenue Agency but weren't sure if you qualified for it, be warned that the tax man is coming.
When the pandemic was declared in 2020, the Canadian government rushed out billions in aid to citizens who were forced out of their jobs.
In that flurry of activity, hundreds of thousands of Canadians received the benefit, some even when they weren't supposed to.
Now, the CRA is looking for that money back, two years after it was issued.
Greg Bates is one of the many people who recently opened their email inbox to find a letter from the organization informing him that the money needed to be repaid.
"I was completely shocked," he told CTV News in an interview on Monday.
"I had gotten an assessment back in 2020 that they knew they gave me the $2,000, they're going to go a couple of weeks without sending me any money to make up for that difference. So there's the confusion there."
In the notice, the CRA says Bates was "paid more benefit" than what he was eligible to receive.
It also included details about how much is owed and instructions on how to make payment arrangements if necessary.
Bates says that now, two years after the money went into his account, he thought he was "free and clear."
"Then this shows up and there's less confusion more than anger. I'm confused by the messaging – I don't understand what this debt is all about."
He adds it's also caused a great deal of stress in his life.
"You're suddenly being billed money that, you know, I'm not going to say I have, but it's coming as an unexpected bill."
Some people could have avoided those "unexpected bills" if they just filled out the proper paperwork, says one Calgary accountant.
It's not too late to do that either.
"They should start filing some of their paperwork in and take it back as far as they can," said Doug Gablehaus.
"I'm working currently with one of my clients, they were asked for their $2,000 back, I've opened up their claim again, I've gone right back. And I've submitted the paperwork for them to get over $10,000 back."
REACH OUT TO THE EXPERTS
Canadians who feel overwhelmed by the issue need to pay attention to the letter and reach out to the CRA, says financial experts.
"I know I'm speaking to people just like me – that piece of paper feels like it weighs 5,000 pounds," said Taz Rajan with Bromwich+Smith insolvency trustees.
"But, trust me, opening it is going to be in your in your best interest."
Rajan says the CRA is open to communication about this issue and that's the first thing people should do.
"When you owe money to CRA, CRA has more rights than other lenders do," he said. "They can garnish your paycheck, they can garnish your bank account, they can charge interest and penalty. So, it can sound very, very scary."
On top of talking with the CRA, Rajan also suggests anyone who is concerned about their situation to reach out to businesses like his.
"How do we make this work for your unique situation and your financial situation and then CRA doesn't have to be so big, bad and scary?
"I'm all for normalizing these conversations."
A sign outside the Canada Revenue Agency is seen on May 10, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
'ATTESTATION-BASED APPROACH'
The CRA, in response to inquiries about the issue, said that it understands that the COVID-19 pandemic was "difficult for many Canadians."
It went on to say that in order to disseminate the money as quickly as possible to those who needed it, it counted on applicants telling the truth about their circumstances.
"The Government of Canada selected an attestation-based approach to enable rapid delivery of COVID-19 individual benefits to millions of Canadians. This means that individuals self-declare the information they provide when they apply for the benefits, and the CRA may verify this information at the time of filing and/or at a later date," the emailed statement read.
The agency confirmed that the letter Bates and many other Canadians have received is authentic and there are debts on their CRA accounts that will need to be dealt with.
It also said that it strives to help Canadians struggling with any sort of circumstances.
"We want to help impacted individuals resolve any issues and our agents will work with them on a case-by-case basis. The CRA has expanded provisions to help individuals meet their tax obligations during these difficult times, including flexible payment arrangements."
Anyone who wishes to make a formal request for a reconsideration can do so by contacting the CRA within 30 days of the date of their notice of debt.
The CRA adds that those who applied for the benefits in good faith will not be penalized.
(With files from Kevin Green)
CTVNews.ca Top Stories
Sparks fly as MPs question minister on pension implications of proposed election date change
Sparks flew at a parliamentary committee Thursday as MPs questioned Canada's democratic institutions minister about a widely opposed provision in electoral reform legislation that seeks to delay the next fixed election date by one week.
'There is no electricity': Canadian travellers in Cuba urge caution in hurricane's wake
Cuba's power grid was knocked out by Hurricane Rafael, which ripped across the country as a Category 3 storm. In western Cuba, it toppled buildings and pushed 50,000 people to find shelter elsewhere. Cubans were already enduring rolling blackouts due to energy shortages.
Three charged in One Direction singer Liam Payne's death
Three people have been charged in relation to One Direction singer Liam Payne's death in a fall from his Buenos Aires hotel balcony last month, Argentine authorities said on Thursday.
RCMP already 'on high alert' for potential wave of migrants after Trump election
Canada's federal police force has been preparing for months on a contingency plan for a potential massive influx of migrants across the border following Trump's promise of 'mass deportations' of millions of undocumented immigrants in the U.S.
'There was no stopping this baby from coming': Woman gives birth while aboard Newfoundland ferry
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
Volkswagen models recalled for airbag safety precaution
Recall notices have been issued for some Volkswagen models from 2006 to 2019 for airbag safety issues.
Canmore wildlife and landscape defender Karsten Heuer dies peacefully at 56
Canmore conservationist Karsten Heuer, who was a biologist, park ranger, author and activist, has died.
America votes: How celebrities are reacting to Trump's decisive victory
Celebrities from Hulk Hogan to Ariana Grande are sharing their reactions to the U.S. election, which will see Donald Trump return to the White House.
3 Winnipeg police officers charged with breach of trust, theft
Three members of the Winnipeg Police Service have been charged with breach of trust, obstruction of justice and theft following a lengthy investigation