CERB Repayments Are Coming For So Many Canadians & Here's What Happens If You Don't Pay
The CRA could seize and sell your property.
A laptop with the CERB application open. Right: The Canada Revenue Agency's national headquarters.
Over the last few weeks, the Canada Revenue Agency (CRA) has been sending letters to Canadians who might need to repay COVID-19 benefits that they didn't qualify for. And, the penalties for not paying up can be pretty serious.
Back in May, the federal government announced that they would be contacting people who received certain COVID-19 benefits to ensure that they were eligible to receive them.
People who are found to have been ineligible for the benefits, including the Canada Emergency Response Benefit (CERB) or the Canada Recovery Benefit (CRB), will be required to pay back all or some of the money they received.
And, if you don't pay them back, there could be a heap of scary consequences.
According to the CRA website, neglecting to pay back any COVID-19 benefits you weren't owed can lead to the agency taking legal action against you.
They warn that "once the CRA has started any of the following legal actions, the CRA will not usually withdraw them."
And these legal actions sound intense.
One thing that the CRA can do to recoup the money is to issue a set-off, which is a way for the agency to redirect your money towards paying off the debt.
This will usually mean taking your federal income and any tax credits you earn back as payments.
Additionally, they can also get a federal or provincial judgement to officially confirm the money you owe, making it possible for them to place a lien on any property you own, including your home.
A lien such as this means that if your property is sold, the CRA gets all proceeds from the sale to pay off the balance of your debt.
The most extreme action the agency says it would be prepared to take is actually seizing and then selling your home or the items within in.
Things that could be seized by the CRA include vehicles, artwork, rental properties owned and more. Once that stuff is seized, it's sold, with all of the money gained going towards the debt.
Oh, and if there's any money still owed after all of this, you still have to cough it up.
Luckily, the CRA will usually issue three verbal warnings over the phone and one written one, so you can't say they didn't warn ya.
If you have to pay back any COVID-19 benefits you received, you can do so at the CRA website where you can pay it off in a lump sum or set up one of many repayment arrangements.
And while there are consequences to not paying, if you are unable to because of your current financial situation, the CRA has options for you. You could get a reduced monthly payment, a pause on the collection or other financial arrangements with the agency.
So, all hope is not lost if you're in a tight situation.