'Blown away': CRA tells Ontario man he's on the hook for over $38K in CERB payments - CTV News Toronto | Canada News Media
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'Blown away': CRA tells Ontario man he's on the hook for over $38K in CERB payments – CTV News Toronto

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An Ontario man says he is “blown away” that he has to pay back the $38,600 he received in Canada Emergency Response Benefits, years after the Canada Revenue Agency approved him for it.

“I don’t understand why they are clawing it back, I really don’t,” said Terrance Bailey of Etobicoke.

Bailey said he worked as an auto consultant when the pandemic happened, which virtually shut down car dealerships nationwide. That’s when he decided to apply for CERB.

“I thought, ‘I’m going to apply for it.’ Why not? I’ve paid my taxes over the years and I thought if it’s available to me, I will take it,” said Bailey.

Bailey was approved for CERB and received monthly payments from April 2020 to October 2021.

“When I applied for it and received the CERB, I was under the assumption everything was fine, and I was accepted in good faith,” said Bailey.

But Bailey was shocked to get a notice from the CRA last April that said a review found he did not qualify for the benefits and that he must repay $38,600 to them. In the letter, the Canada Revenue Agency (CRA) said that Bailey did not earn the minimum amount of income in 2019 or in the 12 months before his application date.

“I was just absolutely blown away, and I had no idea it was coming,” said Bailey.

When the COVID-19 pandemic happened, the federal government created CERB to help eligible Canadians. However, an auditor’s report found that $4.6 billion was paid to people who didn’t deserve it, and the CRA wants the money back.

A spokesperson for the Canada Revenue Agency told CTV News these emergency benefits were developed to ensure businesses and Canadians got the help they needed.

“Given the unprecedented financial impact of the pandemic, that money needed to be delivered extremely quickly to millions of Canadians,” the statement reads, adding those who applied in good faith will not be subject to any penalties or interest.

“However, the Government of Canada made itself clear: ineligible individuals would later have to repay amounts they had received. Canadians expect the CRA to ensure benefits are only paid to those who are entitled, and to do so in a manner which recognizes individuals and families who are experiencing significant financial hardship.”

Evelyn Jacks, a tax expert and president of The Knowledge Bureau based in Winnipeg, said if a taxpayer is told they need to repay benefits, they can appeal their case. But, if they are told they must still repay the funds, they should contact the CRA.

“They will make payment arrangements over time with you, and they will not charge you interest for the money owed,” said Jacks.

Jacks said if you owe money and do nothing, your situation could get worse.

“The CRA can go further and take legal action against you if you don’t contact them and make sure that you address the debt owed,” said Jacks.

Bailey says he can’t afford to pay back the money and fears he may have to declare bankruptcy.

“I’m on an old age pension and a Canada pension. I make $2,000 a month, and how am I supposed to pay back $38,000 and pay my groceries and my rent?” said Bailey.

The CRA may hold back any tax refunds, GST credits and other benefits until CERB funds are repaid.

Jacks says anyone who owes money to the CRA can seek help from a tax professional to see if there’s any way to reduce the amount owed.

Anyone with questions about the CRA-issued COVID-19 benefits and payment options can speak with an agent at 1-833-253-7615.

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Safety board calls for changes two years after Nova Scotia fisherman’s death at sea

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HALIFAX – An investigation into how the Canadian Coast Guard responded to a Nova Scotia vessel in distress two years ago raises questions about why one fisherman died after a towing operation went awry. 

In an investigation report released Thursday, the Transportation Safety Board says the fishing boat Mucktown Girl was returning to Canso, N.S., with five crew aboard on March 11, 2022, when it was disabled by electrical problems. 

The captain called for a tow from the coast guard as a storm was closing in.

After a seven-hour voyage, the Canadian Coast Guard Ship Jean Goodwill reached the drifting boat and attached a 300-metre tow line to the smaller vessel’s bollard. But as the weather turned rough, the bollard broke off six hours into the recovery mission.

At that point, the decision was made to let the fishing crew ride out the storm aboard the Mucktown Girl rather than attach another tow line that could damage the boat.

By 6 a.m. on March 13, wind speeds had reached 70 to 90 kilometres per hour. The waves were as high as 10 metres — twice the height of the fishing boat, which was then taking on water. Crew aboard Jean Goodwill relayed the mayday distress call from the fishing boat, which was 44 kilometres from shore.

Minutes later, amid heavy rain and dense fog, the five fishermen donned immersion suits and jumped into a life raft. In response, the coast guard crew lowered a scramble net — a type of rope ladder — over the side of the 77-metre medium icebreaker. 

But the water was so rough, the net was washed back onto the ship several times. And as the ship rolled in the big swells, two coast guard crew members were injured and a number of others were almost swept overboard.

“As a result of the environmental conditions, communications broke down and affected the co-ordination of the (rescue effort),” the report says.

At the time, the air temperature was about 12 C, but the water temperature was only 4 C.

Four of the fishermen, including the captain, jumped from the life raft into the frothing water and managed to climb the ladder to safety. But the fifth crewman, 35-year-old Jeremy Hart of Windsor Junction, N.S., drifted to the stern of the coast guard ship and disappeared.

The father of two boys was pulled from the water five hours later by the crew aboard a Cormorant search and rescue helicopter, but he was later declared dead at a Cape Breton hospital.

The report from the independent safety board says there are no Canadian regulations for the towing points on fishing vessels.  

“Without specific guidance for assessing the risks to the towed vessel and its crew, the (coast guard) may underestimate risks and tow vessels with crew on board in hazardous conditions, resulting in an increased likelihood of injuries and loss of life,” the report says. 

But the report does not call for any changes, aside from updating the coast guard’s towing waiver, which explains the responsibilities of those involved and the risks.

More importantly, the report highlights the fact that once the bollard broke, it became clear there were no plans in place to remove the crew from the fishing boat.

“Without comprehensive contingency planning for towing disabled vessels, risks to rescuers as well as crews of vessels under tow may be increased,” the report says.

The safety board’s investigation found that the coast guard’s search and rescue (SAR) training typically involves the use of small, fast-rescue craft rather than larger vessels like the Jean Goodwill. 

“There is limited vessel-specific SAR training such as the use of scramble nets,” the report says. “(This) training does not reflect the realistic conditions and equipment in a rescue operation, where factors can change unpredictably. For example, training is carried out in good weather only, and in … overboard exercises, only one person at a time needs rescue.”

As for the scramble net, the report says it was not suitable for the deplorable conditions that faced the coast guard crew in 2022.

“Although scramble nets do not have specified restrictions for use, they are difficult to climb in rough conditions,” the board says. “They are also difficult to climb in an immersion suit, even in calm weather, and are not usable if a person is injured or incapacitated.”

That’s why the coast guard has already installed a so-called rescue scoop on the Jean Goodwill. The hydraulic device uses an extendable arm to dip a scramble net into the water on its side, allowing the operator to scoop up victims.

The device has been used on other coast guard vessels in the past, and the federal agency is looking at acquiring more. 

“Without emergency drills using realistic scenarios, and their subsequent evaluation, vessel crews may not have the most effective equipment and may not be well prepared to use it in the safest and most effective manner,” the report says.

This report by The Canadian Press was first published Nov. 21, 2024.



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Alberta pitches new rules for auto insurance, including rate hikes, no-fault claims

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EDMONTON – The Alberta government is making changes to auto insurance, including rate hikes and switching to a predominantly no-fault claims model.

Premier Danielle Smith announced the changes at a news conference in the legislature.

Under the new system, car accident victims in most cases won’t be able to sue the party responsible for their injury and, instead, insurers would pay compensation at rates set by the government. 

By cutting down litigation costs, the government estimates that when the new system is in place in 2027, it could lead to savings of up to $400 per year for the average insurance premium. 

It’s also promising better support and benefits for those hurt in collisions. 

Until the new model kicks in, insurers would be allowed to raise rates for good drivers up to 7.5 per cent each year, starting in January. 

This report by The Canadian Press was first published Nov. 21, 2024.

The Canadian Press. All rights reserved.



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Third deer infected with chronic wasting disease in B.C.

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VICTORIA – A new case of chronic wasting disease, an incurable illness that has the potential to decimate deer populations, has been identified in British Columbia. 

The B.C. Ministry of Water, Land and Resource Stewardship says the discovery of the infection in a white-tailed deer hunted in the Kootenay region last month brings the total number of confirmed cases in the province to three, after two cases were confirmed in February. 

It says testing by a Canadian Food Inspection Agency lab confirmed the latest infection on Wednesday.

The ministry says the new case occurred within two kilometres of one of the earlier infections in a white-tailed deer near Cranbrook.

Wasting disease affects deer, elk, moose and caribou. It attacks their central nervous system and causes cell death in the brain.

The ministry says there is no treatment or vaccine and the disease is always fatal.

The ministry says there is no direct evidence the disease can be transmitted to humans, but Health Canada recommends people do not eat meat from an infected animal, since cooking is not able to destroy the abnormal protein that causes the illness. 

In July, the B.C. government introduced mandatory testing for the disease in deer, elk and moose killed in certain zones in the Kootenay region.

The first two cases identified in B.C. were a male mule deer killed by a hunter and a female white-tailed deer killed in a road accident.

Other steps included removing urban deer from Cranbrook and Kimberley.

This report by The Canadian Press was first published Nov. 21, 2024. 

The Canadian Press. All rights reserved.



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