An Alberta couple is contesting a request from the Canada Revenue Agency (CRA) to repay over $33,000 in COVID-19 benefits. Daria Skibington-Roffel applied for these benefits after a reduction in her work hours during the pandemic. Despite having her claims approved, she now finds herself facing a huge repayment demand that her family cannot afford.
Background on the COVID Benefits Situation
The CRA is currently engaged in efforts to recover more than $10 billion in COVID-19 relief funds. This includes money that was overpaid and amounts issued to ineligible recipients. A spokesperson for the agency, Nina Ioussoupova, stated that the CRA takes strong measures to recover outstanding debts, which can include garnishing wages and offsetting future tax refunds.
An Unexpected Repayment Demand
Skibington-Roffel, who works part-time due to chronic health issues, was designated the primary caregiver for her retired and disabled husband, Ron Roffel. Throughout the pandemic, she accessed various supports such as the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit. These funds were crucial for her family, allowing them to consistently pay their bills.
Financial Impact of the CRA’s Decision
- Initially, Skibington-Roffel was informed she owed the CRA $14,000 and was ineligible for CERB.
- Two years of disputes led to a letter stating her debt had escalated to around $50,000 due to ineligibility for multiple benefits.
- This debt decreased by over $10,000 as the CRA withheld various refunds and rebates.
Struggling with Debt and Consequences
The couple has had to take loans just to manage their bills and property taxes. They nearly lost their home on two occasions due to financial stress. Ron Roffel pointed out that the low-income threshold for assessing eligibility for COVID benefits is unrealistic and disqualifies many applicants.
Skibington-Roffel, who earns just over $30,000 annually, expressed deep frustration, emphasizing their plight. She stated, “We are being forced to live in worse conditions because we took a benefit that we were eligible for.”
CRA’s Financial Assistance Overview
As of November 30, the CRA had disbursed approximately $83.5 billion in COVID benefits to Canadians. Of this, $45.3 billion was allocated to CERB payments. The CRA reported that about 1.4 million individuals have repaid roughly $3.3 billion related to COVID-19 benefits.
Call for Reassessment
The couple is advocating for the CRA to halt the repayment demands and reimburse the funds already taken. They believe they were fully qualified for the aid they claimed based on the guidelines provided by the CRA.
