Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
3M issues recall for noise-reducing earmuffs due to potential breakage
April 30, 2024 | Product Recalls
36 thoughts onCERB Class Action Lawsuit Filed After Government Asks for The Money Back
My mother-in-law got a letter and she paid them back then. They said oops made mean it was take years of money back and then she’s received a second letter. Now Stating that she’s required to pay the money back again. And there threatened to take absolutely everything that she has Which isn’t much and she’s currently raising her great-granddaughter and looking after her brother. Who has Alzheimer’s and Dementia
I made $13,000.00 as a “small business” or “contract worker” in 2019 and that supposedly made it so I qualified for it. Now they want not only the $18,000.00 they paid me back, but the taxes on top of it. My accountant said to pay it back, except I haven’t worked since 2020. I sent fax after fax after fax and even had my accountant redo my taxes cause my 2019 taxes were messed up. I filed for 2020, and 2021 at the same time. I still haven’t done my 2022 taxes cause I literally can’t. I don’t have an income, and can’t file from out of country. I left end of December 2020 for a visit with a friend who has since become my spouse in a warmer climate and was supposed to go back within a couple of months, but Canada closed it’s borders! Finally, this weekend, I got two tax letters in the mail demanding payment. One told me I had to contact someone on Friday and it got to me on Saturday! The other I got today, and it said that anything I get in refunds will be seized. If I could join this class action, I would. in a heartbeat!
My wife is the sole proprietor of a home based business and her business was decimated by covid – losing all but two of her wholesale clients. They also were affected severely. We welcomed the CERB – CRB benefits to keep her business afloat. We filled out their forms as per their directions giving the information requested. At no time was there any indication that it was a loan. We just got notification that she owes $27,000. We are both retired, and the business of 15 plus years supplemented our income. We are on a fixed income and the business has not recovered.
CRA is clawing back all the CERB and CRB payments I received during the lockdown even though I earned well over $5000.00 in the 12 months prior to my application. This will result in personal financial destruction for me as a 67 year old pensioner. I’ve sent in proof of my self employed income from my copies of client invoices, but the big man Bob Hamilton is ignoring the evidence. Wishing to join a class action lawsuit for the mental anguish, sleepless nights and dispair that I experience 24/7.
Hey I was self employed and collected cerb now I’m having issues with the CRA trying to collect the cerb benefits from me because I couldn’t prove that I worked even tho I 100% did
They are trying to get me to pay $30000 which is ridiculous and now I’ve lost out on my tax return and gst payments
Qualified and lost all work due to covid scare. Collected CERB as government said was available. On AISH and limited income, can’t make ends meet and the CRA gods want $30,000 repayment. These people are ruthless and again they prey on the vulnerable low income. This is very wrong. Sending hardship documents in but it will take a long time for a response. CERB was the feds fault and we all fell for it hook line and sinker. If I can join this class action, I will need to try to file one where I live. We all need to come together and fight back
I got a notice today to pay back $24000…. this is crazy.
Is there an update on this?
is there any class action suit to register on the stop the repayment
The Government says I owe 30,000.00. Opened business March 2019 closed for Covid-19, permanently closed December 2021. Every time I talked to CRA they said I qualified, was I a fool to believe them. I now make 18.00 per hour and pay for a closed business debts, now they want 30,000.00 back which I don’t believe I owe. Knowing the CRA they will make sue I die owing them. I am 57 and have lost everything.
I am self employed Jeweler and pensioner.
My wife and I are $34 above the poverty line.
I made more than $5000 each of the 2 years in question but put it all back into the business in anticipation that Shows and sales would soon be possible again. We were helped with online sales and past customer’s requests.
My tax return showed a negative ( because I invested the capital and didn’t ‘keep it to be entered as Net’. ) I bought materials, and made product.
Now they figured I wasn’t poor enough for help…. or was it that I was too rich to get U.I. ?
Beats me… but I sure understand why people get pissed off at the insanity from our government when we get screwed and the rich get buddy-bucks.
I am a fairly significantly-low income person who received CERB, and they took the money back out of my income tax. I sort of doubt that me commenting on this comment area is enough for me to be added to the suit, so i will be looking for the actual registration form, but if this comment works that is fine too. if any admins on the site see this if you could emaiil me an answer to that question, i would hugely appreciate it. thanks!