QUESTION PERIOD — Canada Revenue Agency
Canada Emergency Response Benefit
December 9, 2020
Honourable senators, my question for the government leader concerns letters self-employed Canadians recently received from the Canada Revenue Agency, telling them to repay their entire CERB payment by the end of the month, which is just a few weeks away. It seems the government has retroactively decided that the CERB qualification of $5,000 income in 2019 was, in fact, $5,000 net income. When former Finance Minister Morneau was here in March and April, he referred many times to the $5,000 requirement, but he never once said that it was $5,000 net. Although CERB has ended, the application website is still online. If you look, it does not contain the word “net.”
So all these months later, why did the government change the criteria for the CERB? Entrepreneurs should not face hardship at this critical time because of an arbitrary decision of your government. Will the CRA stop sending these letters to self-employed Canadians?
Thank you for your question. It is not my understanding that there has been a change in the terms. What I do understand is that the government is continuing to try to deal with the payments and the consequences of the rapidity with which the payments went out in a fiscally responsible, but compassionate and sensitive manner. As ministers who appeared before this chamber through the process this summer said, in explaining the speed with which they and their officials put together the programs — in essentially emergency circumstances — there would be inevitable gaps. Inevitably, there would be problems and they would be addressed as they came to light.
My understanding is that the letters do not require immediate repayment; they are simply there to inform individuals that there may be repayments or issues down the road. I will certainly make inquiries, if you can be more specific outside the chamber, if you would like. I will certainly look into the matter that you raised. That’s my understanding of the situation.
That inquiry concerns the word “net,” which is key; whether the government will be specific on this criteria and perhaps issue new letters, because there is an expectation for these self-employed individuals to pay back the CERB when that was not their understanding.
Leader, your government knowingly approved CERB payments this spring even when fraud was suspected. Now we have a situation where self-employed Canadians applied for CERB in good faith under the rules as they were at the time. Months later, the government changes its mind on the criteria and demands repayment in just a few weeks. Many of these entrepreneurs are still facing COVID-related restrictions on their businesses, even if they managed to stay open, through no fault of their own. Would you follow up specifically regarding the amount — the net amount — and correct this error, if the rule indeed is incorrect, because the government was not clear?
Thank you, senator. I will indeed follow up. I am just not prepared to assume one way or the other whether there has been a change in policy or any incorrect calculation or communication, but I will certainly look into it.
