The Canada Revenue Agency (CRA) may face some hurdles in collecting the money loaned through COVID-19 pandemic relief programs, like the Canada Emergency Response Benefit (CERB), according to a tax lawyer.
The CRA announced last month that it would start issuing legal warnings and potentially take steps to recover overpayments of all COVID-19 programs, including CERB.
After ruling many people ineligible for these payments, the tax agency seeks to regain the money — a total of about $9.53 billion.
“If you divide $9.5 billion by $20,000 or whatever people have received in overpayment, it’s a lot of people,” Dale Barrett said in an interview with CTV Your Morning on Tuesday. Of that $9.53 billion sum, the CRA seeks to collect $5.41 billion from CERB overpayments alone.
Barrett noted several Canadians who received these pandemic relief payments have left the country and aren’t set to return.
“We hear about people who are out of the country, who shouldn’t have received the money, who would never come back, and who are going to get away with it. There’s just so many people who this is affecting,” Barrett said.
There are people who have already “gotten away” without repaying the loan, Barrett adds.
“I’ve dealt with so many people who are out of the country … who will get away without paying it, but there are a lot of people in the country who may get away without paying it,” the lawyer said.
Some Canadians may be unable to afford the CERB repayment.
“Once they’re assessed by the CRA, they can do a consumer proposal, they can do a bankruptcy, the government may never see those dollars but I believe the vast majority of people who are gone after – who are pursued by the CRA – will eventually end up paying that,” Barrett said.
Through the CERB program, Canadians could receive up to $2,000 monthly in financial support if the COVID-19 pandemic affected their employment.
What to do once you’ve received a warning
Barrett explained once someone receives a warning from the CRA, they can ask for another review of their financial situation and whether they have to repay the government.
“They can provide additional information to (the) CRA and ask for a second review of the matter that will go to, generally, someone who didn’t look at the file the first time around,” he said.
“The goalpost changed, the rules for qualifying for the benefits changed from time-to-time, so people have to prove that at the time they applied that they were qualified.”
Failing to provide adequate proof, Barrett explained, will bring the CRA back to your door. In which case, if someone is incapable of paying the money back, Barrett said the only recourse left — outside of declaring bankruptcy or death — is to head to a federal court for judicial review.
Otherwise, Barrett says the CRA can freeze bank accounts, seize assets or put a lien on your home.
“They can generally make your life fairly miserable by assigning a collector to your files who will hound you day in and day out. So they’re very, very good at collecting,” Barrett said.
The tax agency has said it will only take legal action for those who are unresponsive or uncooperative, and who have also been deemed capable of paying the money back.
EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.
Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.
Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.
Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.
Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.
RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.
Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.
“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.
But officers had been investigating other cases when they found Strawberry.
“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.
While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.
This report by The Canadian Press was first published Sept. 13, 2024.
RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.
Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.
The homicide team took over when the BC Coroners Service said the man’s death was suspicious.
It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.
Police say the accused will remain in custody until at least his next court appearance.
The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.
Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”
However, he says the union negotiators didn’t get an offer that they could recommend to the membership.
McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”
About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.
McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.
He says it’s unclear when the talks will resume, but he hopes next week at the latest.
The employer, Transdev, didn’t reply to an interview request before publication.
This report by The Canadian Press was first published Sept. 13, 2024.
