National Revenue Minister Diane Lebouthillier took the disagreement between CRA and Canada's AG to another level when she declared that the assessment of Canada Emergency Wage Subsidy (CEWS) payments needing investigation was “exaggerated.” cdnpoli
National Revenue Minister Diane Lebouthillier. - Justin Tang/The Canadian Press/FileWith two milquetoast words contained in the response to Auditor General Karen Hogan’s report on COVID-19 benefits published Tuesday, the Canada Revenue Agency and Employment and Social Development Canada sent a shock wave across the federal government.
In her report Tuesday, Hogan called on the government to review a staggering $15.5 billion in CEWS payments, more than half of the total $27.4 billion she identified as “minimum” possible overpayments needing investigation stemming from a half-dozen COVID-19 financial aid programs.
She said she was aware of CRA’s concerns that GST/HST monthly reports weren’t a perfect metric, namely because they don’t align with CEWS filing periods, and there are differences between the way revenues are measured to calculate GST/HST owing and CEWS eligibility.CRA clawing back $3.
In fact, the agency says that method automatically flagged nearly all applicants who applied for the Canada Emergency Rent Subsidy , though a subsequent manual verification showed the “vast majority” were actually eligible. Hogan’s report was also extremely critical of the government’s efforts to find and claw back overpayments. Her report called on the CRA to expand its post-payment verifications to make sure it captured and tried to recoup all suspected overpayments.
The brewing battle between CRA and the AG returned to the House of Commons Wednesday during question period, with the Conservatives accusing the Liberals of trying to undermine Hogan’s reputation by calling in question her calculations.
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