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

Discover Camping reservation service opens March 8 for the 2021 camping season. (The News files)
Camping reservations for B.C. parks opens March 8

Busy season expected again this year for Golden Ears Provincial Park in Maple Ridge

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

More affordable rental housing is needed in Maple Ridge says a city report. (Black Press Media files)
Report calls for more affordable housing for seniors and families in Maple Ridge

BC Housing conducting virtual dialogue sessions for Maple Ridge residents

Carnival and midway at the Ridge Meadows Home Show. (The News files)
Ridge Meadows Home Show a no-go this year

Executive director Cass Winder disappointed, but hopeful for next year

Construction workers have begun work to repair the Art Infiniti Hotel on the Lougheed Highway in Maple Ridge. (Neil Corbett/The News)
Work underway to repair Maple Ridge hotel damaged by fire

Cause of Art Infiniti hotel fire still under investigation

B.C. health officer Dr. Bonnie Henry and health minister Adrian Dix wore pink shirts to showcase this year’s motto: “Lift each other up.” (Twitter/PinkShirtDay)
PHOTOS: B.C. celebs take a stand against bullying on Pink Shirt Day

‘We need to let young people know they are not alone and they can reach out to others for help’

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

Travis Selje with Rex, the family dog he got to enjoy for the final six months of his life. (Submitted photo)
Defence says evidence ‘compelling, overwhelming’ to acquit Surrey woman in deadly crash

Epileptic seizure caused fatal crash that killed Travis Selje, lawyer argues in final submissions

Two women were arrested in Nanaimo for refusing to wear masks and causing disturbance on a BC Ferries vessel. (File photo)
B.C. ferry passengers arrested and fined for disturbance, refusing to wear masks

Police said woman threatened their pensions in Feb. 21 incident aboard Nanaimo-bound boat

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

Justin Morissette is still recovering from the injuries sustained in the altercation. He is not yet able to walk without assistance. (Justin Morissette, Twitter)
B.C. man suing city and police over violent altercation with anti-LGBTQ preacher

Justin Morissette argues police knew the threat the preacher posed, and failed to keep the peace

A male customer without a face mask is seen inside a Burnaby Canadian Tire amidst an altercation with store security and staff members. (Video/Screen grab)
VIDEO: Man arrested after allegedly punching Burnaby Canadian Tire staff over mask rule

Mounties received reports Monday of a customer having punched more than one employee

Jack Barnes, who was Cowichan Valley Capitals property from May 2020 until last week, scores a goal for the Penticton Vees during the 2019-20 BCHL season. (Brennan Phillips/Black Press)
COVID-crunched BCHL facing trade deadline dilemma with its 20-year-olds

Hard decisions loom when BCHL may or may not resume play

UBC Okanagan students are among the most food insecure in Canada, according to a new study by UBC.
(Phil McLachlan - Capital News)
UBC Okanagan students among most food insecure in Canada

42.3 per cent either can’t properly feed themselves, or are worried they will soon run out of money

Most Read