CERB and CRB Overpayments – HELP

 In Canada Revenue Agency

Approximately 8 million Canadians received CERB and CRB benefits in the last two years.  Now CRA is asking some 1.7 million Canadians to repay their CERB and CRB overpayments.  That’s more than 1 in 5 people who received CERB and CRB benefits that are now under review as CERB and CRB overpayments.

The programs rolled out quickly, the rules were confusing, and there was a lot of misinformation circulating.  The federal government told us they would eventually come looking for repayment if you received benefits you didn’t qualify for.  Now that we are moving toward “living with Covid”, Canada Revenue Agency has started sending out review letters.  They are giving you 45 days to respond with proof you really qualified, after which they will assess the amounts as owing and begin collection action against you.

If you were employed and got a T4 slip, your employer was required to report your income during certain periods when benefits were available.  CRA is now using that information from your T4 slip to review whether you made too much money to qualify during each of those periods.  The result of that review is the letter giving you notice they don’t think you qualified.

If you received CERB or CRB money and CRA is asking for the overpayment back, you have some choices:

  • You can pay it back if you have the money; or
  • You can agree to a payment arrangement with CRA; or
  • If you can’t afford to make payments to CRA while still managing your living expenses and other debt payments, we can help!

The only way to pay less than the full amount of your debt owing to Canada Revenue Agency is to file a consumer proposal or a bankruptcy with a Licensed Insolvency Trustee like Vine and Williams.  A consumer proposal is an arrangement for you to pay a portion of your debt over a maximum five years.  Debts owing to CRA for CERB and CRB overpayments can be included in a consumer proposal or bankruptcy and the amount you have to pay can be reduced.  Tax debts are included too.

If you are struggling with debts and need help, call Vine and Williams Inc., Licensed Insolvency Trustees at 1-833-808-VINE(8463), email us at newu@vine.ca or click to Contact Us.  We will review your situation and work with you on a plan to deal with all of your debts, including CERB/CRB overpayments and income taxes.  Phone and video appointments are available for your convenience.  Consultations are free.  You have nothing to lose except your debts!

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