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The Canadian Revenue Agency says it is warning about 213,000 Canadians that they may have been paid twice through the Canada Emergency Response Benefit (CERB) program that they could be called to repay the money.
But the refund is not requested right away, the agency says. The CRA suspended debt collection for the duration of the pandemic emergency.
“The Canada Revenue Agency (CRA) has issued letters to people who may have applied for the Canadian Emergency Response Benefit (CERB) from both Service Canada and the CRA and who may be required to repay an amount to the CRA,” a CRA on spokesperson said in an email. “The letters did not require immediate payment, but informed the taxpayer that there may be an obligation to repay the amounts received.
“We will resume collection activities when you are responsible for doing so, including the collection of debts related to CERB payments”,
The CRA responded to the CBC’s question about people being asked to reimburse the benefits of the pandemic. The agency says it is still recommending people to return CERB funds they are not entitled to by the end of the year, warning that if they do not, the sum will appear on T4A payslips and will need to be reported as income on the tax return of the next year.
‘An honest mistake’
In emails to CBC News about possible refunds, CRA avoided suggesting that anyone who received letters warning they should refund CERB money had been involved in any kind of unethical behavior.
A spokesperson for the CRA noted that “applicants can make an honest mistake when applying” for CERB.
It’s also possible that some of those who received repayment letters had already voluntarily returned the money or incorrectly repaid the money to Service Canada instead of the CRA, the spokesperson said.
According to the latest data, 945,000 pandemic benefit refunds, including CERB and Canada Emergency Student Benefits, were made through CRA’s My Account online portal. The large number were blamed for confusion about how to claim the benefits in the early days of the pandemic.
Last week, a Conservative MP expressed concern over CRA data indicating that more than 800,000 non-tax applicants had received CERB payments. But several economists were quick to point out that Canadians can qualify for CERB even if they haven’t previously filed taxes – and only people who owe money to the CRA are required to file a declaration.
For Canadians who have to pay back some pandemic benefits, the CRA says it can work out individual arrangements based on their ability to pay.
In cases where the CRA cannot come to such an agreement with a taxpayer, it turns to collection measures. Such measures remain pending during the pandemic, but could include removing future tax credits and refunds or closing wages, a spokesperson said.
The CRA also warned Canadians to be aware of CERB refund scams, including texts, emails, or phone calls that appear to be from the CRA and asking for money or personal information.
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