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Some Self Employed Not Having To Repay $14,000 CERB Error

Sunny drone shot

Last year the CERB program here was a lifeline for a lot of people to get $2000 a month in order to cope with all the shutdowns. Initially it was super restrictive where if you made even a penny then technically you wouldn’t qualify. However, that eventually changed as almost everyone who earned $5000 of income in the previous tax year qualified.

But this generated a lot of fraudulent claims apparently due to the fact that agents were instructed not to screen anyone per se as they will deal with invalid claims later. Some stories claimed parents were getting money for their kids who didn’t qualify as an example. But one confusing aspect was for self-employed people. I personally read it initially as you must have earned at least $5000 in net income to qualify. However, many people claimed that the Canada Revenue agents were telling people that it was gross income.

So towards the end of 2020 a ton of people who applied based on gross income were asked to repay the $14,000 they received which you can imagine is probably unfathomable if people spent it. But today it was announced that some people may not have to repay it back due to this miscommunication. A sigh a relief for those people where at the same time I was reading that many people were upset over that.

Kind of interesting in those cases as the biggest criticism I believe is that if someone made $5000 then getting enriched to receive $5000 doesn’t make sense. Others argue that it wasn’t their choice to close period and you never know what could have happened in the year. What side would you tend to agree with?


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