CRA warns 213,000 Canadians that they might have to pay back CERB overpayments

The Canada Revenue Agency says it's warningabout 213,000 Canadians who may have been paid twice through the Canada Emergency Response Benefit (CERB) program that they could be calledupon torepay the money.

But repayment isn'trequired right away, saysthe agency. The CRA has suspended collectionofdebts for the duration of the pandemic emergency.

"The Canada Revenue Agency (CRA) has issued letters to individuals who may have applied for the Canadian Emergency Response Benefit (CERB) from both Service Canada and the CRA, and who may be required to repay an amount to the CRA,"a CRA spokesperson said in an email."The letters did not require immediate payment;rather they informed the taxpayer that there may be a requirement to repay amounts received.

"We will resume collections activities when it is responsible to do so, including collection of debts related to CERBpayments,"

The CRA was responding to CBC's question about individuals being asked to repay pandemic benefits. The agencysays it is still recommending thatpeople pay back any CERB fundsto whichthey're not entitledby the end of the year, warning that if they don't,the sum will appear onT4A tax slips and will need to be reported as income on next year's tax return.

'An honest mistake'

In emails to CBC News aboutpossiblerepayments, CRAwas carefulto avoid suggesting thatall those who receivedletters warning they might have to repay CERB moneyhad been caught in any kind of unethical behaviour.

A CRA spokesperson noted that "applicants may make an honest mistake when applying" for CERB.

It's also possible that some of those who have receivedletters about repayment alreadyhad returned the moneyvoluntarily, or hadincorrectly repaid the money to Service Canada instead of the CRA, the spokesperson said.

According to the latest figures, 945,000 pandemicbenefit repayments including forCERB and the Canada Emergency Student Benefit have been conductedthrough the CRA's My Account onlineportal. The large number has been blamed on confusion over how to apply for the benefits in the early days of the pandemic.

Last week, a Conservative MPraised concerns aboutCRA figures indicatingmore than 800,000 non-tax filers had receivedCERB payments.But several economists were quick to point out that Canadians can qualify forCERBeven if they haven'tpreviously filed taxes and only people who owe moneyto the CRAare required to file a return.

For Canadians who do have to return some pandemic benefits, the CRA says it can come up withindividualarrangements based on their ability to pay.

In cases where the CRA can't come to such an arrangement with a taxpayer,it would turnto collections measures. Those measures remain on hold duringthe pandemicbut they could include taking away future taxcredits and refunds or garnishing wages, a spokesperson said.

The CRA also haswarned Canadians to be aware of CERB repayment scams, including texts, emails or phone calls that appear to comefrom the CRA and ask for money or personal information.