Poll Results: Tax & Financial Pros’ Tales of Frustration on Recovery of Pandemic Benefits

Tax and financial professionals who answered our July poll question had a majority agreement that it is fair that the CRA started to issue legal warnings beginning in July to recover the more than $9 billion of overpaid pandemic recovery benefits like CERB. The consensus is that Canadians need to pay back the money if they weren’t entitled to it. At the same time, many comments pointed to the need for CRA accountability in the roll-out and administration of these programs. Thanks to those who participated – check out the comments below:

‘It seems to be kind of late for this.  On the other hand, those who knowingly took CERB that did not qualify should pay it back if they are able.  One of the drawbacks is that the information on what qualified changed frequently (sometimes weekly) and people were confused.  Some, I know, did not receive anything but the CRA is wanting them to “pay back” this fictitious amount owing.  It is a total gongshow.” - Robert

“Yes, those that received that were not eligible should pay back; however there are some clients I have been assisting that legitimately were eligible (Self Employed income over $5,000), but it is difficult to prove to CRA, have sent documents, but they will not reply what is not acceptable to them, and there is no one to talk to to appeal; And there is one that did not receive the CERB for four weeks, but CRA states he did, have sent docs to prove, but impossible to talk to someone to appeal; these are the frustrating situations. - Anni Markmann

“The government freely handed out our money and changed requirements numerous times, yes it would be great to recoup our loss. Tax law/rules needs to lose the large grey areas.” - Kim

“Yes, it is fair to ask for money to be paid back by those who didn’t qualify to receive it. How could the government send out $9 billion in overpaid benefits to begin with. Something was wrong with the execution of the program. But they owe it to the taxpayers who will otherwise end up footing the bill for the government's mistakes.  How much can the reasonably expect to get back anyway. Some managers should resign, or be asked to do so, just like in the private sector.” - Martin

“Most certainly. Those who received the funds fraudulently should most certainly repay that which was received with interest and penalty.” - Devon Wilson

“Absolutely!  Saw so much abuse of this during COVID, it should be collected back.” - Alan Rowell

“Yes, they should pay back the $2000 received from CERB did not qualify for it - be allowed for the taxpayer with taxable income to seek other compensation if not able to pay it back.  A good percentage of the taxpayers made the withdrawls will not be found.” - Ina Turner

“I believe CRA should recover all CERB benefits paid to taxpayers that did not qualify!” - Ann Kinzel

“There were many people that took advantage of CERB that did not qualify - some of those include ODSP, unemployment, Social Assistance.  It is unfortunate that the government wasn’t smart enough to flag these people when setting up the payments.  Now I am not sure how they will go about getting the funds from these people when they barely have enough to survive on now but they should be obligated to pay it back like everyone else.” - Tammy Machan

“My brother-in-law received recommendation from CRA in 2020, when he lost his job, to apply for CERB through Unemployment. Unfortunately, he was paid through CRA and Unemployment, twice.  He returned in 2020 that excess amount of $7,000. Now we have 2024 and he is blocked from Net filing due to owning Government $7,000. Besides that the interest on this amount is scattering and he is not receiving OAS, GST and other benefits he otherwise would be entitled to receive.  When he opens My Service that $7,000 amount is showing there, under different section, as received. He also has copy of the cheque with the date and time the cheque was cashed by government.  Phone calls going nowhere.  Every agent picking up the phone is promising to resolve this, but does absolutely nothing.” - krystyna

“The current situation is partly due to lack of proper vetting of recipients in the first place.” - Randolph Edmead

“I have 2 clients who were victims of identity theft.  They are now being asked to pay back the money they did not get, the thieves got it.  And the money they did pay back but not till 2023, they are not being allowed to deduct it from the year it was received because the payback was delayed due to slowness of CRA investigation of the theft.  The deduction is no use to them in 2023, they are back to income being lower than deductions.” - Virginia Hoover

“I think this is a slap in the face at a time when tax payers are suffering. They should have done better at qualifying people based on even their 2018 tax return if they did not have 2019 then as some sort of starting point. For sure some did not qualify. I myself was unemployed the first time in my adult life and received one payment before EI kicked in and they came back 2 years later saying I owed.. Now they are going after former students who were just getting into the work world during a pandemic and now asking for proof of documents 4 years later, they would not have kept those records. I find it surprising we can promise millions to billions to fight someone else battle but at the same time put your own country’s residents into debt, bankruptcy or worse.” - Keba Mills

“I don’t think its fair to have legal proceedings for all, plus court system is already backed up 3-4 years.  From my own experience I was a server in a home in Bobcaygeon at the height of covid, and due to major outbreak in Bobcaygeon at a different home, due to what was considered close contact then I was taken off work for 2 weeks and this was just at the switch over of EI that noone stated, so applied for EI and now CRA is collecting for an EI overpayment and neither goverment agency can tell me why or when I was overpaid.  I also have a client who was dinged for over $20,000 and based on their own (current) rules of qualifications he was entitled; documents have been submitted for proof 3 times now and it’s been 3 months since last submission and no one has been assigned to look at the case. - Kim

Thanks to those who participated! In August, we ask you to weigh in on the following “Effective August 1, new 30-year mortgage amortizations are available for first-time home buyers purchasing newly built homes. Will you recommend this option to your clients?”