Mother of 2 frustrated by mixed messages over CERB eligibility, clawbacks

When Ashleigh Buchanan had her hours cut and was eventually put out of work during the COVID-19 pandemic, she — like thousands of Canadians — turned to government programs to help her make ends meet.

But the London, Ont., mother of two said she's struggling again after the Canada Revenue Agency (CRA) held back her $12,000 tax refund this year, claiming she wasn't eligible for the pandemic benefits she received.

Buchanan's story isn't unique, as several Canadians have had their refunds garnisheed after being told their eligibility status had been revoked. 

But Buchanan said she's getting mixed messages from various government departments after asking for a second review of her eligibility.

"I'm just frustrated with having to call Canada Revenue and doing circle phone calls for days and literally not getting an answer," she said. "Or you get one answer, and then you call back a couple hours later and you get a total different answer."

Buchanan said she originally applied for employment insurance through Service Canada before being transferred to Canadian Emergency Response Benefit (CERB).

She received letters last month — which she has shown CBC — from the CRA and from Service Canada. The CRA letter, dated June 1, said she was ineligible for the CERB because she didn't earn at least $5,000 in the 12 months before the pandemic, which is the income threshold first established under the program.

But the letter from Service Canada, dated June 22, says she did meet the income threshold.

"Based on the information we have on file regarding your earnings, we confirm you have met the earnings eligibility requirement," the letter from Service Canada reads.

Buchanan said she's spent hours calling both the CRA and Service Canada trying to get some clarity, but is still without a concrete answer.

"I'm beyond frustrated," she said. "I shouldn't have to be calling every day and pleading with them."

Katrina Miller, executive director of Canadians for Tax Fairness, said issues like Buchanan's were bound to happen given the speed with which CERB was rolled out. But she said the government should take more responsibility in resolving those issues.

"Right now, the onus seems to be on the individuals to sort out the often confusing information they get from the government," Miller said.

Last year, Auditor General Karen Hogan found that roughly $4.6 billion in pandemic benefits were sent to ineligible individuals, and more than $15 billion in the Canada Emergency Wage Subsidy (CEWS) was sent to ineligible businesses.