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 COVID-19 exposure has been reported at Drinkwater Elementary School dating to Feb. 25. (Google Street View image)
COVID-19 exposure reported at Drinkwater Elementary

Possible exposures occurred on Thursday, Feb. 25

A graphic design of the new RCMP detachment which will be located on a five-acre property bordering Ford Road and Drinkwater Road. (File graphic)
Heavy trucks not allowed shortcut during construction of RCMP detachment

North Cowichan won’t allow heavy trucks on Drinkwater Road where not designated

The site of Sunfest, Laketown Ranch, will be open for camping this summer. (Citizen file)
Laketown Ranch to welcome campers this summer

Sunfest site will provide camping amenities between May and September

‘I chose my children’s breakfasts purely based on what dishes would fit best into the dishwasher.’ (Bobbi Venier photo)
Sarah Simpson Column: Delayed gratification and the benefits of efficiency

I was driving with just my daughter the other day and we… Continue reading

Wayne Allen's graduation photo from Chemainus Secondary School. (Photo submitted)
Brother charged with murder in Chemainus teenager’s Ontario death

Jesse James Allen stands accused in the death of Wayne Allen, a 2020 Chemainus Secondary grad

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

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

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

1957 photo shows Six Mile House-sponsored #4 1932 Ford stock car with Frank Morris (from left), Ted Mackenzie, Bill Sim and driver Gerry Sylvester. (Bud Glover/Victoria Auto Racing Hall of Fame)
Memories race as Western Speedway approaches its finish line

‘It was life to us:’ Vancouver Island racers, crew will never forget what the track gave them

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’

BC Ferries experienced heavy traffic on Feb. 27 following cancellations the day before due to strong winds and adverse weather. (Black Press Media file photo)
BC Ferries sailings fill up quickly after Friday cancellations due to high winds

Waits expected on Swartz Bay-Tsawwassen route, Horseshoe Bay-Departure Bay route

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

A crossover utility vehicle smashed through the front of a business on Bowen Road on Friday evening. (Chris Bush/News Bulletin)
Vehicle smashes all the way inside business in Nanaimo

No serious injuries reported after incident at Venue Financial Centres on Friday

Most Read