The Canada Revenue Agency says it is still owed about $10 billion in COVID-19 emergency benefits that were paid to Canadians later deemed ineligible, underscoring the long financial fallout of pandemic relief programs.
According to data provided by the agency to CBC News, roughly $14 billion in COVID-related benefits was issued to individuals who, upon review, did not meet eligibility requirements—primarily minimum income thresholds. Since repayment efforts began in 2022, the CRA has recovered about $4 billion, leaving $10 billion outstanding.
Much of the money was distributed through the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB), which provided $2,000 per month to workers who lost income during the pandemic and were not eligible for Employment Insurance.
“I would have never applied if I didn’t qualify”
Edmonton-based country singer Patrick Masse is among those facing repayment demands. Masse said his live performances were cancelled when the pandemic hit in 2020, prompting him to apply for emergency benefits.
Between April 2020 and June 2022, Masse received more than $41,000 in federal support. He later received a notice from the CRA stating he did not meet the required minimum net income of $5,000 and must repay the funds.
“I was stunned. I couldn’t believe it,” Masse said. “I would have never applied for anything that I did not qualify for.”
After months of appeals, the CRA determined in early 2024 that Masse was entitled to part of the benefits, but he still owes about $27,000.
“I don’t have the money,” he said. “I live in poverty … I can’t afford to lose $27,000.”
Enforcement tightening, experts say
In a statement to CBC News, the CRA said it recognizes the financial pressure many Canadians face, but warned it will pursue repayment from those who do not cooperate.
The agency said enforcement measures can include offsetting tax refunds and credits, as well as garnishing wages or other income.
Brian Mantin, a licensed insolvency trustee in Vancouver, said he is seeing an increasing number of clients struggling with pandemic benefit debts.
“The CRA was fairly lenient at the beginning,” Mantin said. “But in the last few months, that approach has changed significantly.”
Mantin noted that wage garnishments—where up to 30 per cent of pay can be redirected to the government—are among the most severe measures.
“If you owe money to the government, there’s no statute of limitations,” he said. “You can’t wait out this type of debt.”
Calls for accountability
The CRA estimates it paid out approximately $84 billion in COVID-19 benefits to individuals during the pandemic.
Franco Terrazzano of the Canadian Taxpayers Federation said he warned early on that poorly defined eligibility rules could result in widespread overpayments.
While he believes compassion is needed for individuals facing repayment, Terrazzano said government officials responsible for administering the programs should be held accountable.
“When you make a multibillion-dollar mess-up, you should be prepared to polish off your resumé,” he said.
Appeals still ongoing
The CRA says some repayment decisions are being overturned. As of Nov. 30, the agency reported it had reversed $621 million in pandemic benefit debts for about 55,000 individuals who successfully challenged their eligibility assessments.
Masse says he plans to continue fighting his repayment order, insisting he applied in good faith.
“You believe you were eligible at the time,” he said. “I will not admit that I owe this money, because I applied honestly.”
The CRA says it will continue reviewing cases and collecting outstanding debts as repayment efforts move forward.