When the global health crisis caused by the novel coronavirus struck in 2020, Patrick Masse, a country musician based in Edmonton, found himself in a situation familiar to many Canadians. Due to the sudden cancellation of all his scheduled performances, Masse applied for government relief benefits to mitigate the financial impact.
Having anticipated substantial earnings for the year, Masse’s income prospects were dashed as the world grappled with the pandemic. Over the period from April 2020 to June 2022, he received over $41,000 in government aid. However, he later received a notice from the Canada Revenue Agency informing him that he did not meet the minimum net earnings requirement of $5,000 and therefore was obligated to repay the funds.
Expressing his surprise and disbelief, Masse stated, “I was taken aback. I would never have sought benefits for which I was not eligible.” After a lengthy back-and-forth with the CRA, it was eventually acknowledged in early 2024 that Masse was entitled to a portion of the sum received. Nonetheless, he remains liable for approximately $27,000.
Masse’s predicament is not unique, as data provided by the CRA to CBC News indicates that around $14 billion in COVID-related financial aid was disbursed to individuals who were later deemed ineligible due to income threshold discrepancies. The majority of these funds were distributed through programs like the Canadian Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB).
Since 2022, the CRA has been notifying recipients of the need for repayment, resulting in the recovery of approximately $4 billion to date, with $10 billion still outstanding. The agency has emphasized its commitment to taking necessary actions against individuals avoiding repayment, including legal measures such as wage garnishment and offsetting refunds.
Blair Mantin, a licensed insolvency trustee, highlighted the increasing strictness of the CRA in pursuing outstanding debts related to pandemic benefits. He emphasized that there is no statute of limitations when it comes to government debts, and individuals must address their obligations promptly.
Franco Terrazzano from the Canadian Taxpayers Federation raised concerns about the disbursement of funds to ineligible recipients, emphasizing the need for accountability within the government. While acknowledging the challenges faced by individuals required to repay funds, Terrazzano called for repercussions for those responsible for program mismanagement.
Patrick Masse maintains his eligibility for the financial support he received and is determined to contest the repayment demand. He insists that returning the funds would imply dishonesty in his application, a notion he vehemently rejects. With ongoing efforts, Masse hopes to resolve the repayment dispute, joining thousands of individuals seeking clarification and resolution from the CRA.