The 8.9 million recipients of the Canada Emergency Benefit will soon receive a document from the Canada Revenue Agency (CRA) for tax purposes.
Ottawa announced Monday that it had started sending out the T4A form showing amounts collected with the flagship assistance program.
Remember that the PCU, deployed because of the COVID-19 crisis, is taxable. However, no amount has been withheld at source and many will therefore have to pay an amount to the tax authorities.
“The Agency knows that there have been several questions about eligibility for financial support programs in recent weeks. The Government of Canada is examining possible options to address the concerns of Canadians on this matter while continuing to support them during this crisis, ”the statement said.
For example, the CRA invites Canadians who believe they have received a T4A in error to contact it.
Not all PKU providers will have an amount to reimburse to the Canadian tax authorities, on account. This depends in particular on the tax credits and deductions for which they are eligible.
Those who received one of the three successor benefits to the ECP – the Canada Economic Stimulus Benefit, the Canada Sickness Benefit for Economic Stimulus, and the Canada Economic Stimulus Benefit for Caregivers – may also have a tax payment to be made. These beneficiaries, however, had a withholding tax, although it was partial.
As for those who have fraudulently touched assistance programs, they will have to reimburse all of the amounts collected rather than just a withholding tax.