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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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36 thoughts onCERB Class Action Lawsuit Filed After Government Asks for The Money Back
I was working with Walmart in 2019 and had to rush back to India to attend to my ailing mother. IGot stranded in India due to covid. I informed my employer by phone messages to Walmart. When I returned my services had already been terminated. My employment income during the year 2019 was over 5000. I could not apply at that time to EI because the hours were less. I applied for CERB and now they are asking back.I even applied for 2nd review which is pending. As per the instructions I was eligible for CERB. Now CRA is demanding the amount in instalments.
My situation. I am in business for myself. Covid sunk me but I was still able to do enough business to claim this CERB money. I did so when I needed it and didn’t when I didn’t. However I’ve now come to find out that in this instance my cash jobs which were all proven via direct deposit into account, were not acceptable. I’m expected to pay taxes on those cash jobs but they aren’t acceptable for this cert help??? This is Not a good precedence to make. Which is it? Either cash jobs are or they aren’t admissible for taxes and or certain??? I’m floored rn and this is killing me financially. I can’t afford to pay 8k back. And really really don’t see the logic now when it’s all just going to go to refugees and other countries. Can anyone help?? I need directions Badly!
I also have supplementary self employment income and claimed CERB. In 2022 I received a letter requesting supplementary information that I sent in as I was told I’m on the hook for the 14,00 received in CERB payments. I sent in all paperwork and heard nothing back. Today February 2024 I received a letter stating they never received the information requested. I called the number on the paper and the fella from CRA found the attachment with everything I sent in. I’ve been told my tax returns are flagged and I will not be getting any money until this matter is resolved. How can this be.
Self employed for 32 years , Lost everything trucks trailer business ( windows and door glass installation company ) . Collected cerb still lost they are demanding 20 grand on top of the massive debt and loss of 100 thousand dollars worth of sales we had to endure watching all we worked so hard for dissappear as did many many of us small mom and pop style shops .we now live week to week doing small jobs for cash to survive hoping to pay rent next Mos.
I am a self-employed 66 year old woman. In 2019 my gross personal income exceeded $5000. I also am the sole owner of a limited company, that DID NOT claim CEBA, that also grossed over $5000. My company is a wellness company that is classified as personal services. We were closed almost constantly by either the federal lock-down, provincial, county or town lock-downs. I am my company.
In 2020, I started putting my bookkeeping revenue through the company to help pay the utility bills (I own the building) because we were forced closed (with the threat of a $300,000 dollar fine) so much that my company revenue was not there to cover costs. Because my personal income went down, they said I did not qualify. My limited company still earned more than $5000 in 2020.
I supplied information on when and who had us forced closed. I supplied the information from the result of the class action lawsuit that self-employed people who grossed more than $5000, did not have to repay.
My M.P.’s office was of no help and I actually took the information that I printed from the CRA website to them to hopefully help self-employed individuals following me. The employee there seemed quite apathetic.
I have had a judgement that I owe $5000, the review said I owed $11,000. I filed RC193. I was contacted and the decision was that ‘their office is to deal with complaints about specific cra agents.’ I told him that I had a problem with the agent’s decision as unfair. He said that as there had already been a second review, there was nothing he could do.
My question is: What should my next step be? Would contacting the ombudsman help?
Are there any class action lawsuits on the CERB I could join?
I just received a CRA letter about the CERB. I had a mix of earned income. However, I also worked for a major tutoring agency in Vancouver. Both the agency and I have all the proper financial paperwork. But because they allowed clients to pay us the $50. in cash sometimes, instead of depositing it I would buy groceries. Had I known, I could have easily deposited the $50. first. The CRA only seems to want bank statements or my claim may be disallowed. What a horrible thing to find out just before Xmas. (I have been on and off disability. Is there anyone I can hire for help?)
I was told by an agent that I was eligible for CERB payments and later told I have to repay
My name is Chris Robinson, I’m 69, a pensioner and a self employed musician. I also thought that I qualified for the cerb due to my gross income of nearly 18K in 2019. now I’m told I have to pay back 25K from the cerb I received
and it’s thrown my life into a depressing state. I have absolutely no way of paying this off outsaide of selling my home, which I don’t want to do. I would love to talk to someone at the Jan Weir legal team.
I received a letter from (CERB) Canada, notifying me that I was not eligible and that I would receive a second correspondence for the amount I would have to repay for the aid received. I do not believe that because of an error by the State, it turns out that I must pay the consequences.