UPDATE: On February 9, 2021 Prime Minister Justin Trudeau announced that self-employed Canadians will not have to pay the government back the Canada Emergency Response Benefits (CERB) they received.
“For people who accessed CERB based on their gross income instead of net income, as long as you met the other eligibility criteria, you will not have to return your CERB payments,” Prime Minister Trudeau reportedly said in a press conference on Tuesday.
The announcement provides a breath of relief for those who were initially on the hook to pay back up to $14,000 amid the ongoing pandemic struggles. The announcement is also a pivot from the government’s previous position that resulted in the CRA sending out hundreds of thousands of letters reportedly requesting the money back.
The government’s initial stance on the mix-up sparked this class action lawsuit filed by a retired teacher claiming her and other self-employed Canadians were not to blame for the money mistake.
The prime minister agreed saying in part, “Our priority is ensuring that you and your family get through this pandemic and back on your feet.”
Those who paid the money back to the government with haste will get it back, according to a Global News report.
Canadians are also off the hook for certain tax debts from the CERB payments. “If you received federal emergency benefits – like the CERB – and you made up to $75,000 in taxable income, you will not have to pay interest on 2020 tax debt until April of next year,” Prime Minister Trudeau added according to Global News.
Top Class Actions will continue to update this news article as it develops. Click on the “Follow Article” at the top of this page to get the latest updates about the CERB repayment class action lawsuit by using your free Top Class Actions account.
A retired teacher says that she and other self-employed Canadians were misinformed about supplemental benefits under the country’s COVID-19 relief compensation plan and now the government wants its money back. She filed a CERB repayment class action lawsuit against the federal government saying she’s not to blame for the money mishap.
Lead plaintiff Janet Ryan, a semi-retired teacher in Mississauga, Ont., claims she supplements her pension with income from tutoring part-time, making approximately $5,000 in 2019. Ryan says that the coronavirus pandemic has affected her income and she welcomed financial assistance.
The plaintiff claims she checked to make sure she qualified for the Canada Emergency Response Benefit (CERB) before applying; however, after she received assistance she also received a letter from the Canada Revenue Agency (CRA) demanding a CERB repayment because she did not meet eligibility requirements for the program.
Indeed, in December, over 400,000 Canadians reportedly received CRA letters notifying them that they may have to pay their CERB assistance back. The letters threw many into a panic, wondering how they would pay the benefit back as the pandemic drags on, according to The Star.
The issue is confusion over the eligibility requirements for CERB assistance. Allegedly, the CERB website was not clear about the income eligibility requirements. Many applicants believed that only their gross income needed to be over $5,000 for them to qualify for CERB; however, the income limit was $5,000 net income.
In addition to confusion on the CERB website, some self-employed Canadians say that CRA representatives told them that they qualified based on their gross income. In fact, the CRA admitted that some of its agents had the wrong information, reports The Star; however, the agency maintains that some CERB recipients will still be required to pay back the benefit despite the misleading information.
Self-employed Canadians who received CERB assistance, but did not qualify because their net income was under $5,000 may be forced to repay as much as $14,000 to the government.
CERB has faced other legal actions. This summer, a class action lawsuit claimed that CERB failed to protect individuals’ personal information, leaving itself open to a series of cyberattacks.
The proposed CERB repayment class action lawsuit seeks to represent pensioners with self-employment income. The lawyer representing the plaintiff told The Star that, if successful, the class action lawsuit will likely benefit all self-employed Canadians who received a CRA letter demanding their CERB assistance back.
Are you a self-employed CERB recipient? Are you concerned that you are going to have to pay your benefits back? Tell us about your experience in the comment section below!
Lead plaintiff, Janet Ryan, and the proposed Class Members are represented by Jan Weir of Jan D. Weir, Barrister.
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60 thoughts onCERB Class Action Lawsuit Filed After Government Asks for The Money Back
I am a self employed 62 yr old who has never applied for for any other benefit except CERB & CRB in 45 yrs. Due to the constant lock downs and people being told “stay home and don’t let others in your house” I had to close my business for the 1st three months and applied for CERB. As a Real Estate photographer , how was i supposed to resume my job? I was careful to make sure I followed the criteria for qualifying during each call. I make well over $5000 per year and my accountant assured me I would qualify. At no time in the year after for CRB did I make more than the $1000 limit. Now , in 2026 , after my accountant has sent them all the statements and documents the CRA had requested they are saying my account can no longer be reviewed and that I owe slightly over $20,000 in repayment. Is it too late to join this ?