People who have received COVID-19 related benefits that they were not entitled to, who continue to ignore calls and letters to inform them of this, and who are likely to have the ability to pay will begin to be informed that They could be subject to “legal measures”, announced the Canada Revenue Agency (CRA).
In a press release, the Agency announced that it is moving to “the next stage” of its measures to recover overpaid amounts, notably through the Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) and the Canada Lockdown Workers Benefit (CCWB).
The “legal warnings” in question will be issued as early as July. A tax official will telephone or write to the individual before any action is taken.
“Legal action may include garnishing wages or other sources of income, such as a bank account,” the CRA said in an email to The Canadian Press.
Until now, recalcitrants had little to fear and used the funds for other purposes, especially since no interest was imposed on these debts.
The federal agency says the best way to avoid such measures is to immediately repay what they owe. Canadians who would experience “undue hardship” can work out a “mutually satisfactory” payment arrangement that takes into account their ability to pay.
The CRA estimates it has $9.53 billion in overpaid benefits left to collect, including $5.4 billion for the CERB, a program that paid $2,000 per month to Canadians whose jobs were lost or reduced due to public health restrictions.
Given the urgency of the situation, Ottawa paid the CERB when Canadians declared on their honor that they met the criteria to be entitled to it.