A man in Toronto received a debt collection letter from the Canada Revenue Agency (CRA) asking for more than $3With a welfare payment of 80,000 Canadian dollars, he was stunned.
The man said he was now receiving a pension with only $2,000 a month and no money to pay it back.
An Ontario man said he is now told he has to pay back $3 of Canada's emergency response benefits860,000, which made him feel very "shocked". He also said that a few years ago, the Canada Revenue Agency had clearly approved his application, so why did he come to ask for money now.
I don't understand why they're taking it back, I really don't understand," said Terrance Bailey, who lives in Toronto.
Bailey said he was an auto consultant when the pandemic hit, and almost all car dealerships across the country were closed. That's when he decided to apply for CERB.
I was like, 'I'm going to apply for this money.'" Why not? I've been paying taxes for so many years and I thought if I could apply, I would accept it. ”
Bailey was successfully approved by CERB and received monthly payments from April 2020 to October 2021.
"When I applied and received the CERB, I thought everything was fine and I was accepted sincerely," Bailey said. ”
However, the reality seemed to slap him in the face.
Last April, Bailey received notice from the CRA that the review found him ineligible for benefits and that he had to pay them back $3$860,000, which shocked him.
In the letter, the Canada Revenue Agency said that Bailey's income in 2019 or in the 12 months prior to the filing date did not meet the minimum standards.
I was completely stunned, I didn't know anything like this would happen. He said.
When the COVID-19 pandemic hit a few years ago, the Commonwealth created CERB to help eligible Canadians. However, an audit report found that $4.6 billion was paid to those who didn't deserve it, and now the CRA wants to get it back.
A spokesperson for the Canada Revenue Agency told CTV News that these emergency benefits were put in place to ensure businesses and Canadians get the help they need.
"Given the unprecedented economic impact of the pandemic, this money needs to reach millions of Canadians at breakneck speed," the statement read. The statement also added that those who did not apply in bad faith will not receive any penalties or interest.
However, Canada** makes it clear that ineligible individuals must later repay the money they receive. Canadians want the CRA to ensure that benefits are paid only to those who qualify and are given out in a way that recognizes individuals and families experiencing significant financial hardship. ”
Evelyn Jacks, a tax expert in Winnipeg and chair of the Knowledge Bureau, said taxpayers can appeal if they are told they need to repay benefits. However, if they are told that they still have to pay back the funds, they should contact the CRA.
They'll schedule payments with you for a period of time and won't charge interest on the money you owe," Jakes said, but if you owe money and do nothing, you're in a worse position.
If you do not contact the CRA and make sure that you will settle the debt owed, the CRA can take further legal action against you. Jakes said.
Bailey said he couldn't afford to pay the money and feared he might have to declare bankruptcy.
I receive a pension and a Canadian pension. I get $2,000 a month, how can I pay back $380,000, how to pay for groceries and rent? ”
It is understood that the CRA can withhold any tax refunds, GST credits and other benefits until the CERB funds are repaid.
Jack said anyone who owes CRA money can seek help from a tax professional to see if there is a way to reduce what they owe.
Anyone with questions about the COVID-19 benefits and payment options issued by the CRA can speak to **.