(Ottawa) People who received benefits related to the COVID-19 pandemic that they were not entitled to, who continue to ignore calls and letters to inform them and who presumably 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 made in July. An IRS employee will telephone or write to the individual before action is taken.
“Legal measures may include garnishment of wages or other sources of income, such as a bank account,” the CRA said in an email sent to The Canadian Press.
Until now, recalcitrants had little to fear and could use the funds for other purposes, especially since no interest was imposed on these debts.
The federal agency warns that the best way to avoid such measures is to immediately repay what they owe. Canadians for whom this would cause “undue hardship” can enter into a “mutually satisfactory” payment agreement that takes into account their ability to pay.
The CRA estimates that it still has $9.53 billion in overpaid benefits to recover, 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 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.