There is good news for some self-employed Canadians who mixed up gross and net income when applying for the Canada Emergency Benefit (CERB). Ottawa says they are likely to be let off the hook.
“People who accessed CERB based on their gross income instead of their net income, as long as you meet the other eligibility criteria, you will not have to return those CERB payments,” Prime Minister Justin Trudeau said in a press conference on Tuesday.
The federal government says anyone in that situation who already repaid money owing will be reimbursed.
This policy applies regardless of whether applicants accessed CERB through the Canada Revenue Agency or through Service Canada, according to a multiple news report.
In November and December of last year, some 441,000 Canadians received so-called education letters from the CRA saying they may not have met the requirements for the thousands of dollars in CERB payments they had received and might have to pay the money back.
Others will have up to a year to pay back any debt from COVID-19 benefits without interest.Those pandemic benefits are the Canada Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) that replaced it, the Canada Emergency Student Benefit (CESB), the Canada Recovery Caregiving Benefit (CRCB) and the Canada Recovery Sickness Benefit (CRSB).
“We’re providing one year without interest on certain 2020 tax debt, giving people more flexibility repaying amounts owing from last year,” Trudeau said. “If you received federal emergency benefits like the CERB, and you made up to $75,000 in taxable income, you will not have to pay interest on 2020 tax debt until April of next year.”
Those pandemic benefits are the Canada Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) that replaced it, the Canada Emergency Student Benefit (CESB),
Trudeau also urged everyone to file their taxes.
“It’s important to file your taxes so you get things like the Canada Child Benefit, the work from home deduction, and the climate action incentive,” he said. “These benefits and credits can really help, especially after such a tough year.”
He also reminded Canadians about the other benefits still available including the Canada Recovery Benefit (CRB) and enhanced EI, the Canada Recovery Caregiving Benefit (CRCB), the Canada Recovery Sickness Benefit (CRSC), the Canada Emergency Wage Subsidy (CEWS), and business loans.
