Canada
Canada holds back tax refunds of ineligible taxpayers for receiving CERB
Ottawa/IBNS: The government of Canada is reportedly holding back all or part of tax refunds of some taxpayers saying that they were ineligible to receive Canada Emergency Response Benefit (CERB) payments
The auditor general was reported saying in Dec that $4.6 billion in pandemic benefits went to ineligible recipients.
That $4.6 billion total includes other pandemic programs such as the wage subsidy and the caregiver benefit.
Canada Revenue Agency (CRA) has reportedly been sending notices to CERB recipients it believes have received funds in error.
The federal government has legally 36 months from the time benefits are paid to confirm that a payment was proper.
Over one million such notices have been sent out as of mid-April, with roughly 775,000 people having repaid nearly $1.4 billion so far, having recovered $237 million through offsets such as holding back tax refunds, said the agency.
The agency added those who believe they were eligible for the payments can ask for a review.
"Many factors can influence a taxpayer's debt. That is why we encourage Canadians to contact the CRA if they have any questions about their file," a CRA statement said.
(Reporting by Asha Bajaj)
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