Canadians forced to make recovery benefit repayments

Figures reported by the Canada Revenue Agency state that over 830,000 repayments have been made by Canadians voluntarily due to errors in applications for the Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB).

What could have prompted such mass errors in applications? How could the programs put in place to aid Canadians financially been implemented differently?

Toronto employment lawyer Lluc Cerda at Samfiru Tumarkin LLP states there was a lack of clarity on the federal government’s part when the benefits plans were launched.

“I think with the way the plan was rushed into place — and I mean, the times called for it — there’s definitely a lot of confusion, and I think that’s a large part of why people are paying it back,” Cerda states in speaking with CBC. Cerda goes on to explain that many people couldn’t get through to the CRA or Service Canada call center agents — and when they did reach an agent, they were sometimes given contradictory information.

“Widespread uncertainty also may have led some people to apply for benefits, then “park” the money until tax time against the possibility that it would have to be repaid,” Cerda adds,  “uncertainty may have deterred some people who were actually eligible for benefits like CERB from even applying.”

More information on the repayments can be found here.