240 million mistake for CRA

OTTAWA – The Canadian Revenue Agency has made a mistake in the distribution of PCUs, which could cost taxpayers $ 240 million.

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30,000 self-employed people received the Canada Emergency Benefit (CEP) when they were not technically eligible because they reported gross income in 2019 as $ 5,000 rather than net income of $ 5,000.

However, they do not have to pay back to the state because the Revenue Agency (ARC) made a mistake. She realized that she lacked “clarity” when it came to setting eligibility criteria to launch the program.

Workers can file a claim based on “income” without specifying whether the CRA result is net or gross income. Criteria were later clarified more clearly, but damage had already been done.

In December, before the holidays, CRA created panic by telling beneficiaries that if they failed to demonstrate declaring at least $ 5,000 in net income in 2019, they would have to repay the full benefits they received.

6,500 people did so, which helped get back 52 million to the public treasury.

But the government is backtracking, because “the people concerned will be in trouble if they have to repay the sums received. In that case, it would be unreasonable and unjust for the Crown to collect the debts, “said an official Gazette.

In fact, the government will not ask for any reimbursement and will also reimburse the 52 million million already recovered.

“From today, self-employed workers who have applied for the PCU in good faith may request the government to reimburse them for the amount repaid from the PCU,” said National Revenue Minister Diane LeBautier.

PCU is the most expensive program of the federal government to deal with the health crisis. It was requested by over 8.8 million Canadians, including 2 million Quebecs. Total value of paid PKU benefits.0 74.08 million.