If you have received COVID-19 compensation money from the Canadian Revenue Agency but are not sure if you are eligible, be warned that the tax person is coming.
When the pandemic was declared in 2020, the Canadian government sent billions of aid to citizens who were forced to leave their jobs.
In this whirlwind of activities, hundreds of thousands of Canadians benefited, some even when they shouldn’t.
Now the CRA is looking for that money back, two years after it was issued.
Greg Bates is one of many people who recently opened his inbox to find a letter from the organization informing him that the money should be returned.
“I was completely shocked,” he told CTV News in an interview Monday.
“In 2020, I received an estimate that they knew they had given me $ 2,000, it would be several weeks without them sending me money to make up the difference. So there is confusion.
The CRA said in a statement that Bates had been “paid more compensation” than he was entitled to.
It also includes details of how much is due and instructions on how to arrange payment if necessary.
Bates says that now, two years after the money went into his account, he thought he was “free and clear.”
“Then it comes up and there’s less confusion, more anger. I’m confused by the messages – I don’t understand what this debt is about.”
He added that this also caused a lot of stress in his life.
“Suddenly they charge you money, which, you know, I won’t say I have, but it comes as an unexpected bill.”
Some people could avoid these “unexpected bills” if they just filled out the right paperwork, says an accountant in Calgary.
It is not too late to do that.
“They need to start submitting some of their documents and returning them as much as they can,” Doug Gablehouse said.
“I’m currently working with one of my clients, they asked for a refund of $ 2,000, I reopened their claim, I came back immediately. And I submitted the documents to get back more than $ 10,000. “
TURN TO THE EXPERTS
Canadians who feel overwhelmed by the problem should pay attention to the letter and turn to the CRA, financial experts say.
“I know I’m talking to people like me – this piece of paper looks like it weighs 5,000 pounds,” said Taz Rajan of the Bromwich + Smith trustees.
“But believe me, opening it will be in your best interest.”
Rajan says the CRA is open to communication on this issue and that is the first thing people need to do.
“When you owe money to the CRA, the CRA has more rights than other creditors,” he said. “They can garnish your salary, they can garnish your bank account, they can charge interest and penalties. So it can sound very, very scary.
In addition to talking to the CRA, Rajan also offers anyone who is concerned about their situation to contact a business like his.
“How do we make this work for your unique situation and your financial situation, and then the CRA should not be so big, bad and scary?”
“I’m in favor of normalizing these conversations.”
A sign in front of the Canadian Revenue Agency is visible on May 10, 2021 in Ottawa. THE CANADIAN PRESS / Adrian Wilde
“APPROVAL-BASED APPROACH”
The CRA, in response to inquiries, said it understood that the COVID-19 pandemic was “difficult for many Canadians”.
It goes on to say that in order to distribute the money as quickly as possible to those who need it, he relies on the applicants to tell the truth about the circumstances in which they find themselves.
“The Government of Canada has chosen an attestation-based approach to enable the rapid provision of individual benefits from COVID-19 to millions of Canadians. This means that individuals themselves declare the information they provide when applying for benefits and the CRA can verify this information at the time of submission and / or at a later date, “the statement said in an email.
The agency confirmed that the letter that Bates and many other Canadians received is authentic and that there are debts on their CRA accounts that will have to be settled.
He also said he was trying to help Canadians struggling with all sorts of circumstances.
“We want to help those affected to solve any problems and our agents will work with them on a case-by-case basis. The CRA has expanded its provisions to help individuals meet their tax obligations during these difficult times, including flexible payment agreements. “
Anyone wishing to make a formal request for a review may do so by contacting the CRA within 30 days from the date of the debt notification.
RTR adds that those who have applied for benefits in good faith will not be sanctioned.
(With files by Kevin Green)
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