A pedestrian walks past a closed storefront on St. Catherine street as the COVID-19 pandemic continues to take its toll on local businesses, Thursday, Oct. 8, 2020 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

A pedestrian walks past a closed storefront on St. Catherine street as the COVID-19 pandemic continues to take its toll on local businesses, Thursday, Oct. 8, 2020 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

High-income earners in Canada collected CERB, pandemic-related data shows

Tax policy experts note that many higher-income earners saw their workplaces closed

A key benefit for workers replaced lost earnings for thousands of higher-income Canadians, providing a new glimpse at the scope of federal aid during the COVID-19 pandemic.

The $2,000-a-month Canada Emergency Response Benefit was a key part of the aid package the Liberals rolled out since March, paying out just over $81.6 billion in benefits to 8.9 million people until it ended at the start of October.

It was predominantly used by people who earned under $47,630 in 2019, figures from the Canada Revenue Agency show, but those higher up the income ladder also applied for the benefit program.

The CRA numbers show at least 114,620 people who earned between about $100,000 and $200,000 last year applied for the CERB. Another 14,070 people who had made more than $210,000 applied for the benefit.

Lindsay Tedds, a tax policy expert at the University of Calgary, noted that many higher-income earners saw their workplaces closed and self-employed workers had contracts suddenly cancelled, or invoices left unpaid.

“The point was to replace income that was lost due to the pandemic, lost because of government regulations shuttering the economy to control the virus,” Tedds wrote in an email.

The CERB was available to anyone who had made at least $5,000 in the preceding 12 months, and whose income crashed because of the pandemic, either from a drop in hours or being unable to work.

Filing a tax return wasn’t part of eligibility rules.

The issue earned a spot in the daily question period when the Conservatives asked about 823,580 recipients for whom the tax agency didn’t have 2019 income information at the time it compiled the data.

The figures, in response to a written question, were as of Sept. 23, one week before the tax filing deadline of Sept. 30.

Conservative finance critic Pierre Poilievre said everyone who lost their jobs because of COVID-19-related shutdowns should have received the CERB, but he decried payment to what he called suspected fraud cases.

He asked what the government was doing to ensure “the money didn’t go to people who didn’t earn the right to receive it.”

Finance Minister Chrystia Freeland responded by saying any fraud would be “completely unacceptable.”

“The hardworking public servants in the CRA are doing an outstanding job and they are going to make sure that all claims are legitimate,” she said.

The CRA said in a statement Thursday that “it would be erroneous to conclude” that CERB payments to those without a 2019 tax return were being paid to “fraudsters or to non-eligible individuals.”

It added that officials will be checking claims against upcoming tax returns and payroll records to find any cases of wrongful payments.

People can still apply for back payments of the CERB until Dec. 2.

The latest figures on its replacement, the Canada Recovery Benefit, show the amount in benefits paid has risen to over $2.72 billion given to more than 1.1 million people since it became available in late September.

A wage subsidy program, which has so far paid out $48 billion, and an emergency loan program round out some of the measures the Liberals took to keep employees on payrolls, and companies from going under.

The Senate passed the government’s latest measures for businesses on Thursday, paving the way for a new commercial rent-relief program, extra help to companies subject to lockdowns, and an extension of the wage subsidy program to next summer.

Royal assent was expected later Thursday.

Data from the national statistics agency on Thursday showed companies that used the business loan program in the spring often put the money toward paying wages and suppliers.

Over half of businesses polled by Statistics Canada that received loans early on in the pandemic said the money was key to them keeping their doors open.

In all, 756,115 loans have been approved, valued at $30.24 billion, according to other figures tabled in the House of Commons this week.

The figures are up to Sept. 23, and show construction and retail companies in the top two spots for where the loans have gone by industry. About $9.8 billion in loans went to small businesses with earnings under $65,000.

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Coronavirus

Just Posted

Soaker hoses laid down over corn seedlings, soon to be covered with mulch, will see to the watering needs of the bed through any summer drought. (Mary Lowther photo)
Mary Lowther column: Investing in soaker hoses is money well-spent

No-till gardening has a distinct advantage during drought

Karl McPherson, left, and Mary Morrice are the new head coach and general manager, respectively, at the Duncan Dynamics Gymnastics Club. (Kevin Rothbauer/Citizen)
Manager charts a new course for Duncan Dynamics

More recreational programs to join competitive teams

Cute but fierce! Timber moonlights as an attack kitty. (Sarah Simpson/Citizen)
Sarah Simpson Column: Beware of Mr. Bite, the midnight attacker

Last week, in the middle of the night, I was awoken by… Continue reading

The province has come through with funding for Duncan Manor’s renewal project. (File photo)
Funding comes through for Duncan Manor’s renewal project

Money will come from the province’s Community Housing Fund

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Police cars are seen parked outside Vancouver Police Department headquarters on Saturday, January 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver police officer charged with assault during an arrest in 2019

The service has released no other details about the allegations

Denmark’s Christian Eriksen receives medical attention after collapsing during the Euro 2020 soccer championship group B match between Denmark and Finland at Parken stadium in Copenhagen, Saturday, June 12, 2021. (AP Photo/Martin Meissner, Pool)
Christian Eriksen in stable condition, Euro 2020 match resumes

Eriksen was given chest compressions after collapsing on the field during a European Championship

Members of the Department of Fisheries and Oceans’ Marine Mammal Response Program rescued an adult humpback what that was entangled in commercial fishing gear in the waters off of Entrance Island on Thursday, June 10. (Photo courtesy Marine Mammal Response Program)
Rescuers free humpback ‘anchored’ down by prawn traps off Vancouver Island

Department of Fisheries and Oceans responders spend hours untangling whale

As stories of the horrors of residential schools circulate after the Tk’emlups te Secwepemc First Nation announced it had located what are believed to be the remains of 215 children, Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs said he feels a connection with the former students. THE CANADIAN PRESS/Darryl Dyck
2 sides of the same coin: Ex-foster kids identify with residential school survivors

Grand Chief Stewart Phillip says the child welfare system takes Indigenous children from their families

Nathan Watts, a member of the Tseshaht First Nation near Port Alberni, shares his story of substance use, a perspective he said isn’t seen enough. (Photo courtesy of Nathan Watts)
Public shaming, hate perpetuates further substance use: UVic researcher

Longtime addict Nathan Watts offers a user’s perspective on substance use

Most Read