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fy cz Reimbursement: 180 degree turn of Ottawa in the ECP file for self-employed workers - The Times Hub

Reimbursement: 180 degree turn of Ottawa in the ECP file for self-employed workers

Reimbursement: 180 degree turn of Ottawa in the ECP file for self-employed workers

The federal government does an about-face and will ultimately not demand that thousands of ECP recipients repay emergency aid.

Ottawa created anger last year among many self-employed workers who received up to $ 14,000 in Canada Emergency Benefit (CEP).

The Canada Revenue Agency was asking them to repay the amount since they were not eligible.

Changing rules

These taxpayers claimed to have completed their application based on vague criteria that were specified along the way.

“People who made a mistake because of a lack of clarity in the instructions, we are not going to force them to reimburse,” Prime Minister Justin Trudeau said in a press briefing yesterday.

In addition, providers who have already voluntarily returned the money owed will receive a refund. And this, even if the latter were not entitled, in theory, to receive the ECP.

Confusion

The confusion stems from a communication error on the part of the Revenue Agency last spring concerning one of the eligibility criteria, namely earned income.

To be eligible, taxpayers had to have pocketed income of at least $ 5,000, without specifying whether this should be calculated gross or net, before or after expenses.

A crucial detail for self-employed workers.

Federal change of course will be a sigh of relief for many Canadians

This winter, the Revenue Agency sent more than 440,000 letters to PKU recipients who were not eligible.

Many of them will ultimately not have to repay.

Employment Minister Carla Qualtrough does not know how much the measure will cost the public purse.

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