If you received money for Canada Tax Agency COVID-19 benefits, but you are not sure if you were entitled to it, please note that the prosecutor will come.
When the pandemic was declared in 2020, the Canadian government launched billions in aid to citizens who were forced to quit their jobs.
In that burst of activity, hundreds of thousands of Canadians received the benefit, some even when they did not have to.
Now, the CRA is looking for a refund of that money, two years after the issue.
Greg Bates is one of many people who recently opened his e-mail inbox to find a letter from the organization informing him that the money had to be returned.
“I was completely surprised,” he told CTV News in an interview on Monday.
“I had received an assessment in 2020 that they knew they gave me the $ 2,000, which will go a couple of weeks without sending me money to make up for that difference. So there’s the confusion.”
In the notice, the CRA says Bates “paid more profit” than he was entitled to receive.
It also included details on how much you owe and instructions on how to make payment arrangements if needed.
Bates says that now, two years after the money went into his account, he thought it was “free and clear.”
“Then this comes up and there’s less confusion than anger. I’m confused by the message: I don’t understand what this debt is about.”
He adds that it has 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 may have avoided these “unexpected bills” if they had only filled out the proper documentation, says a Calgary accountant.
Nor is it too late to do so.
“They should start presenting some of their paperwork and take them back as far as they can,” Doug Gablehaus said.
“I’m currently working with one of my clients, they were asked for a $ 2,000 refund, I reopened their claim, I got back to it right away. And I sent the documentation back to them over $ 10,000.
ACCOMPANY THE EXPERTS
Canadians who feel overwhelmed by the problem need to pay attention to the letter and contact the CRA, financial experts say.
“I know I’m talking to people like me – this piece of paper seems to weigh 5,000 pounds,” Taz Rajan told Bromwich + Smith’s insolvency administrators.
“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 should do.
“When you owe money to the CRA, the CRA has more rights than other lenders,” he said. “They can seize your paycheck, they can seize your bank account, they can charge interest and penalties. So it can seem very, very scary.”
In addition to talking to the CRA, Rajan also suggests anyone concerned about their situation to contact companies like yours.
“How do we make this work for your unique situation and your financial situation and then CRA doesn’t have to be that big, bad and scary?
“I’m in favor of normalizing these conversations.”
On May 10, 2021, a sign is seen outside the Tax Agency of Canada in Ottawa. THE CANADIAN PRESS / Adrian Wyld
“ATTESTATION-BASED APPROACH”
The CRA, in response to inquiries on the issue, said it understands that the COVID-19 pandemic was “difficult for many Canadians”.
He went on to say that in order to spread the money as quickly as possible to those who needed it, he hoped that the applicants would tell the truth about their circumstances.
“The Canadian government has chosen an accreditation-based approach to enable the rapid delivery of COVID-19 individual benefits to millions of Canadians. This means that people self-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 Bates and many other Canadians have received is genuine and that there are debts in their CRA accounts that will need to be addressed.
He also said that he strives to help Canadians who are struggling under any circumstances.
“We want to help those affected solve any problems and our agents will work with them on a case-by-case basis. The CRA has expanded its provisions to help people meet their tax obligations during these difficult times, including flexible payment arrangements.” .
Anyone wishing to make a formal request for reconsideration may do so by contacting the CRA within 30 days of the date of notification of the debt.
The CRA adds that those who apply for benefits in good faith will not be penalized.
(Archived by Kevin Green)