CRA begins sending debt letters to those who received pandemic benefits while ineligible

Canadians who received federal COVID-19 emergency benefits for which they weren't eligible can expect a lettersoon telling them to pay up.

The Canada Revenue Agency (CRA) announced today that it is sending out "notices of redetermination" letting people know of debts owingon their CRA accounts.

During the pandemic, the federalgovernment set up the $2,000-per-month Canada Emergency Response Benefitand later the Canada Recovery Benefit to help those who lost their jobs or saw their hoursreducedsignificantly due to pandemic lockdowns.

The programs were based on an attestation;applicants themselves hadto determine if they were eligible based on the criteria.

The CRA andEmployment and Social Development Canada are now working to recover some of the money.

"The government has been clear throughout the pandemic that while there will not be any penalties, individuals will have to repay the emergency benefits for which they were not entitled," says the CRA statement.

The agency says anyone who receives one of these lettersbutbelieves they were eligible for these benefits is encouraged to contact the CRA to provide more details.

It added thatflexible payment arrangements will be available and no interest or penalties will be applied to any repayments.

"We recognize that receiving this type of correspondence can be stressful and we remain committed to supporting Canadians," reads the statement.

The new letters follow federal Employment Minister Carla Qualtrough's warning in November thatanyone who received a CERB advance payment of $2,000 in 2020 but did not remain on CERB long enough to fully reconcile that payment owes money to Ottawa.