Prime Minister Justin Trudeau holds a news conference at Rideau Cottage in Ottawa on Friday, Feb. 5, 2021. THE CANADIAN PRESS/Sean Kilpatrick

Prime Minister Justin Trudeau holds a news conference at Rideau Cottage in Ottawa on Friday, Feb. 5, 2021. THE CANADIAN PRESS/Sean Kilpatrick

Some Canadians facing CERB clawbacks may not have to pay it back: Trudeau

Fed benefit applicants making under $75K taxable income get till April 2022 for payments

Some Canadians who applied for the Canada Emergency Response based on their gross income, instead of their net, will not have to pay the money back.

Prime Minister Justin Trudeau said Tuesday (Feb. 9) that those who otherwise qualified for CERB but assumed due to poor communication that the income limit was based on gross, not net income, will not have to pay back the payments if they otherwise qualify.

Employment Minister Carla Qualtrough said that the CERB’s initial eligibility support was meant to be as broad as possible to help Canadians stay home.

“If you applied for CERB based on a gross income, instead of net income, you won’t have to repay the CERB,” she said. The CERB had a requirement that recipients make at least $5,000 in 2019, or in the 12 months prior to applying for the CERB. While this was not made clear initially, the feds later clarified that this was meant to be net income, not gross.

“Owners who rely on business income should consider their net pre-tax income (gross income less expenses),” a questions and answers section federal government’s website now states.

For other Canadians who may be having trouble paying taxes this year, Trudeau said that people who received emergency benefits and made no more than $75,000 in taxable income won’t play interest until April 2022.

Trudeau faced questions about why the federal government was not just cancelling CERB clawbacks for all recipients.

“For many people who took the CERB because they needed it in the moment and then got back to work… the CERB will be taxed,” he said, adding that extremely low-income Canadians will not have to pay much in taxes regardless.

More to come.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Paul Chiasson
39 new cases of COVID-19 in Interior Health region

The total number of cases in the region since the pandemic began is now at 7,334

A rainbow shining on Kelowna General Hospital on May 12, 2020 International Nurses Day. (Steve Wensley - Prime Light Media)
New COVID cases trending down in Interior Health

24 new cases reported Thursday, Feb. 25, death at Kelowna General Hospital

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. (THE CANADIAN PRESS/Paul Chiasson)
30 new COVID-19 cases, five more deaths in Interior Health

This brings the total number of cases to 7,271 since testing began

The Barriere Outdoor Club’s ski and snowshoe trails at the Barriere Forks Trails had plenty of snow last week, and thanks to the club’s groomer, Steve Rainer, the trails were reported to be in great shape (Mary MacLennan photo)
Outdoor ski and snowshoe trails ready at Barriere Forks

New signs and freshly groomed ski and snowshoe trails are ready and… Continue reading

(Metro Creative graphic)
Heart Stroke takes Heart Month fundraiser 100% online

Door-to-door Canvass goes virtual as pandemic accelerates digital innovations

Abbotsford’s Kris Collins turned to TikTok out of boredom when the provincial COVID-19 lockdown began in March 2020. She now has over 23 million followers on the video app. Photo: Submitted
Internet famous: Abbotsford’s Kris Collins is a TikTok comedy queen

Collins has found surprise stardom alone with a phone

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Pig races at the 145th annual Chilliwack Fair on Aug. 12, 2017. Monday, March 1, 2021 is Pig Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Feb. 28 to March 6

Pig Day, Canadian Bacon Day and Grammar Day are all coming up this week

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Doctors and counsellors warn of an increase in panic attacks, anxiety, depression and suicide ideas between ages 10 to 14, in Campbell River. ( Black Press file photo)
Extended pandemic feeding the anxieties of B.C.’s youth

Parents not sure what to do, urged to reach out for help

Kara Sorensen, diagnosed with lung cancer in July, says it’s important for people to view her as healthy and vibrant, rather than sick. (Photo courtesy of Karen Sorensen)
B.C. woman must seek treatment overseas for inoperable lung cancer

Fundraising page launched on Karen Sorensen’s behalf, with a goal of $250,000

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

Most Read