Alberta Couple Challenges CRA Over $33K COVID Benefit Repayment Demand
An Alberta couple faces a significant repayment demand from the Canada Revenue Agency (CRA), totaling approximately $33,000. This situation arose after Daria Skibington-Roffel received COVID-19 support payments during the pandemic when her work hours were reduced.
Background on COVID-19 Support Payments
Throughout the pandemic, many Canadians relied on assistance programs like the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit. These programs were designed to support individuals facing financial difficulties due to job losses or reduced hours.
Skibington-Roffel applied for these benefits, believing she met the eligibility requirements outlined on the CRA’s own website. Her family, which includes her retired and disabled husband, Ron Roffel, depended on these funds to manage everyday expenses.
The CRA Repayment Controversy
In 2021, Skibington-Roffel noticed she did not receive her expected tax return. When she inquired with the CRA, she learned she owed a total of $14,000 due to an alleged high income. Over two years, this amount escalated to around $50,000, as the CRA refused to reinstate her previous tax returns and benefits.
- Initial debt reported: $14,000
- Current debt claimed: Approximately $33,000
- Overall amount owed at one point: $50,000
The couple claims they have faced severe financial strain, including taking out loans just to keep up with bills and property taxes. They also experienced the threat of losing their home on two occasions due to these financial hardships.
Assessment of Eligibility Criteria
Ron Roffel criticized the CRA’s income threshold for eligibility, arguing it unfairly disqualified many low-income Canadians. The couple alleges that adjustments to these thresholds during the repayment process negatively impacted their ability to qualify for the benefits they originally received.
Skibington-Roffel expressed frustration over the CRA’s decision, stating, “This has been a huge stress for my husband and me. We just don’t have enough money between us to pay for anything right now.”
CRA’s Response and Broader Implications
The CRA has emphasized the importance of recovering overpayments and ensuring funds are distributed appropriately. As of November 30, the agency had disbursed $83.5 billion in COVID-19 benefits, with $45.3 billion allocated for CERB alone. Approximately 1.4 million individuals have since repaid around $3.3 billion in debts associated with these programs.
Skibington-Roffel and her husband are advocating for the CRA to reverse their repayment demand and return the withheld funds. “We could live like human beings for a couple of years and now we’re being forced to live in worse conditions,” she stated.
This case highlights the complexities surrounding government assistance programs, especially during unprecedented times like the COVID-19 pandemic, and raises questions about the fairness and clarity of eligibility rules.
