CRA estimates 30,000 self-employed workers may not have to reimburse CERB –

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CRA estimates 30,000 self-employed workers may not have to reimburse CERB – fr


OTTAWA – The Canada Revenue Agency says thousands of self-employed workers who received emergency benefits last year will not have to repay anything, provided they meet certain conditions.

For anyone whose net self-employment income was less than $ 5,000, these conditions include having filed their 2019 and 2020 tax returns and having $ 5,000 or more of gross self-employment income during 12 months preceding his claim for benefits.

They must also meet all other criteria set out by the government for the Canada Emergency Benefit when it paid out $ 500 a week last year to workers whose incomes fell during the first half of the pandemic.

The agency estimates that about 30,000 people will not have to repay their CERB payments, which represents about $ 240 million in benefits, or about $ 8,000 on average.

The government’s estimate includes about $ 52 million that the agency expects to reimburse to about 6,500 people who repaid part of the benefits after being warned they were potentially ineligible late last year.

Refund requests are now open and the agency says payments are expected to start in mid-June.

The government provided CERB payments last year with some validation checks to speed up payments during lockdowns last spring when three million jobs were lost.

The plan was still to shop around to see which beneficiaries were not eligible for benefits and order them to repay.

CERB’s criteria required recipients to have earned at least $ 5,000 in the 12 months preceding the application, which the CRA interpreted as gross income for traditional employees, but net income for the self-employed.

The CRA sent more than 441,000 letters to CERB grantees late last year asking them to verify that they were meeting the eligibility rules for payments, but did not set an official deadline for refund, or obligation to do so, following a public outcry.

It is possible that some people will meet the income requirements when they file their tax return, as the 12-month period could overlap 2019 and 2020.

This report by The Canadian Press was first published on May 27, 2021

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