Ineligible CERB recipients have already repaid $190,000 to the Canadian Revenue Agency

The CERB (Canada Emergency Response Benefit) is a monthly payment from the federal government of up to $2,000 for up to four months for Canadians who have lost their incomes due to the COVID-19 pandemic. The payment is taxable and will be reclaimed by about 25 percent for the 2021 tax season.

When one files for the benefit, the CRA can verify the claimant's information and assess how much they are eligible to receive. If a claimant is deemed ineligible, they are contacted and must make arrangements to repay a specific amount owed.

The CRA website has information on how Canadians who are ineligible can repay the CERB money they received and as of June 3, almost $190,000 of that money has been repaid via the website, according to CRA spokesman Christopher Doody.

The CRA has also received about 600 tips regarding potential abuse of the CERB that they will be investigating, said Doody, who encourages any Canadian who may have information on CERB misuse to come forward. "Any tips received will be reviewed for validity of the information provided," wrote Doody in an email.

While the vast majority of Canadians have been honest, the CRA has maintained records of the Canadians who have received the benefit and for how long. The agency plans to follow up with claimants at a later date and will verify tax slips from employers and other necessary information. Eligibility will also be validated in the 2021 tax season. Doody is confident that the CRA has in place effective systems to catch fraudulent claims.

"The CRA continues to aggressively pursue tax evasion and fraud with all the tools available to them," said Doody. "The CRA is dedicated to ensuring that individuals receive only those benefits to which they are entitled so that important benefit programs can be administered to those who need them."

The Liberal government is currently under scrutiny over the recent changes they are proposing to make to the CERB program that they have outlined in a new draft bill that will likely be tabled in the House of Commons on Wednesday.

The bill would ensure penalties for fraudulent applicants who filed under false or misleading information such as improper disclosure of income or omitting relevant facts upon their application. The bill would consider penalties for any Canadian who failed to go back to work when it was reasonable to do so, failed to resume self-employment when it was reasonable to do so, or declined a reasonable job offer when available to work.

The draft bill will include up to a $5,000 fine on top of a penalty equal to double the amount received from the benefit could be implemented on fraudulent applicants, as well as a period of up to six months in jail.

Penalties may be reduced or rescinded upon new facts presented to the government which may result in a warning being issued in its place.