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

While the Okanagan Rail Trail remained open, Coldstream parks have been closed for a month now, but could re-open mid-May. (Jennifer Smith - Morning Star)
Funds link Okanagan Rail Trail to Predator Ridge

1.3-km section of multi-use trail with a safe crossing under Highway 97

Vernon Fire Rescue Services, BC Ambulance and Vernon North Okanagan RCMP responded to a three-vehicle collision at 32nd Street and 41st Avenue Friday, Feb. 26, 2021. (Google Maps)
Three vehicles collide on main Vernon road

Extent of injuries unknown at this time; police, ambulance and fire on scene

Several road closures were in effect Jan. 13 due to downed trees, but meanwhile many residents are hoping Lake Country will invest in fixing damaged roads in 2021. (District of Lake Country photo)
Road safety puts Lake Country traffic plans in drive

District funds traffic calming program, and community grant

One person was extricated from a vehicle that rolled off Highway 97 Feb. 25, 2021, near Clerke Road in Coldstream around 2 p.m. (Roger Knox - Vernon Morning Star)
Two hurt in Highway 97 rollover south of Vernon

Ambulance transfers two patients with non-life-threatening injuries

The District of Lake Country and BC Transit would like the public’s feedback on how to improve the Kelowna Regional Transit System for Lake Country. (File photo)
Lake Country residents asked for transit feedback

District and BC Transit seeking ways to improve Kelowna transit system for Lake Country residents

Kelowna singer-songwriter Brent Carmichael wants to encourage the community to be more empathetic. (Brent Carmichael)
Kelowna singer-songwriter calls for compassion, empathy in new music video

Brent Carmichael’s new music video will premier on Feb. 28

Summerland’s municipal council will proceed with a four per cent property tax increase this year, but the deadlines for property tax payment have been extended. (John Arendt - Summerland Review)
Summerland councillor’s letter to media draws disappointed from colleagues

Statements about solar project did not violate ethical or conduct standards

(Phil McLachlan - Capital News)
Kelowna’s top cop removing barriers for women in the force

Kara Triance’s journey to becoming a police chief was not without its challenges

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

Ella Lamourexu. (Phil McLachlan, Kelowna Capital News)
Kelowna’s drag story

Ella Lamourexu explains the history behind drag in Kelowna

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Person experiencing homelessness. (Black Press Media file photo)
Program preventing youth homelessness launches in the Okanagan

Upstream Project’s goal is to help young people become more resilient

(Michael Rodriguez, Kelowna Capital News/FILE)
First death tied to COVID-19 outbreak at Kelowna hospital

The outbreak was first announced on Monday, Feb. 22

Walter Makepeace was shocked to find two of his beehives were missing from his Keremeos acreage Feb. 20, 2020. (Contributed)
Stolen beehives create buzz in South Okanagan village

Walter Makepeace was shocked to see two beehives had gone missing from his property

Most Read