The Canada Revenue Agency (CRA) says it is still owed roughly $10 billion in COVID-19 relief payments issued to people later deemed ineligible, despite recovering about $4 billion so far. When the pandemic shut down the economy in 2020, Edmonton-based country singer Patrick Masse, like many Canadians, turned to emergency government support after his performances were cancelled overnight. “I had strong projected earnings that year,” Masse said. “Then everything collapsed when the world shut down.” Between April 2020 and June 2022, Masse received more than $41,000 in pandemic benefits. He was later notified by the CRA that he did not qualify for much of the assistance and was required to repay the money, after the agency determined he failed to meet the $5,000 minimum net income threshold. “I was shocked,” Masse said. “I would never have applied for something I wasn’t eligible for.” After months of appeals, the CRA acknowledged in early 2024 that Masse qualified for part of the benefits, but he still owes about $27,000 — a sum he says he cannot afford. “I live in poverty,” he said. “I can’t lose $27,000.”
CRA data shared with the media shows Masse’s case is not unique. The agency estimates that about $14 billion in COVID-related benefits went to individuals who did not meet eligibility criteria, largely under the Canadian Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB), which provided $2,000 per month to workers who lost income and were not eligible for employment insurance. In 2022, the CRA began notifying recipients about required repayments. While $4 billion has been recovered, $10 billion remains outstanding. The CRA says it recognizes the financial strain many Canadians face but warns it will pursue repayment from those who avoid settling their debts. Measures may include withholding tax refunds and future credits, freezing bank accounts, or garnishing wages. Licensed insolvency trustee Brian Mantin of Vancouver says he regularly sees clients struggling with pandemic-related debts. While the CRA initially took a more flexible approach, he says enforcement has intensified in recent months.
“We’re seeing wage garnishments and frozen accounts,” Mantin said. “Once the government goes directly to your employer, that’s when it becomes extremely difficult.” Mantin emphasized that debts owed to the federal government do not expire. “There’s no statute of limitations,” he said. “You can’t wait this out.” The CRA estimates it distributed approximately $84 billion in pandemic benefits. Franco Terrazzano of the Canadian Taxpayers Federation says accountability is needed for how the programs were administered. “Compassion is important for people who have to repay,” Terrazzano said. “But the bureaucrats who created a multibillion-dollar problem should also be held accountable.” Despite the financial pressure, Masse maintains he applied in good faith and intends to continue contesting the repayment.
“Paying it back would mean admitting I lied,” he said. “I won’t do that.” There may be hope for others in similar situations. As of Nov. 30, the CRA reported it had reversed about $621 million in pandemic-related debts for roughly 55,000 people after eligibility reviews.
