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Unclear wording of CERB eligibility means some recipients asked to pay everything back
Self-employed Canadians were eligible for CERB as long as they made more than $5,000 in 2019 or within the 12 months before they applied. However, in recent letters sent out last week requesting repayments, the Canada Revenue Agency defines self-employed income as “net” self-employment income of at least $5,000.
Some CERB applicants interpreted self-employment income as their gross income, not net income, and say the CRA did not make this clear.
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The CRA denies changing the rules. The agency told CTVNews.ca that it considers self-employment income as the net pre-tax income — gross income minus expenses.
“This is consistent with how self-employment income is calculated when dealing with the CRA. To be clear, there has been no change to this position during the lifecycle of the CERB,” CRA spokesperson Sylvie Branch said in a statement Saturday.
For Loga, that three-letter word makes all the difference. He earned more than $10,000 gross income in 2019 from his business, which mostly involved installing satellite dishes and internet service. But once his expenses were subtracted, his net income dropped to around $2,000, well below the CERB’s $5,000 threshold.
"They changed the rules without telling anyone anything,” said Garth Loga, a self-employed contractor from Courtenay, B.C., who was forced to shutter his business of 33 years and is now selling off his truck and tools to cover his sudden $14,000 repayment.
