CRA Paid Out $100 Billion in Wage Subsidies Without Any Screening, Auditor General Says

3 months ago 21

Canada Revenue Agency (CRA) did not bash cursory checks connected claims requesting wage subsidies nether a pandemic alleviation programme utilizing the accusation it already had earlier paying retired $100.6 cardinal to businesses, including those successful taxation default, according to Auditor General Karen Hogan.

“An illustration we saw was successful the Emergency Wage Subsidy program,” Hogan testified earlier the Standing Senate Committee connected National Finance connected Sept. 4, arsenic archetypal reported by Blacklock’s Reporter. “The Canada Revenue Agency had accusation wherever they could person vetted the eligibility of businesses.”

The Canada Emergency Wage Subsidy (CEWS) programme was first announced by the national authorities connected March 27, 2020, arsenic a measurement to supply tiny businesses impacted by the COVID-19 pandemic a 75 percent wage subsidy for up to 12 weeks, retroactive to March 15, 2020.

On April 11, 2020, the national authorities introduced and passed Bill C-14, “A Second Act Respecting Certain Measures In Response To Covid-19,” to instrumentality CEWS. The bill, which received royal assent connected the aforesaid day, had the programme administered by the CRA nether the Income Tax Act.

Cabinet expanded CEWS successful June 2021 to screen ample publicly-traded corporations. The program, which was primitively estimated to outgo $73 million, went 38 percent implicit fund with payments connected 5 cardinal abstracted claims, according to Blacklock’s Reporter.

“[CRA] could person done immoderate benignant of screening earlier giving retired wage subsidies and they didn’t usage each the accusation disposable to them,” Hogan told the committee. “They didn’t stock accusation crossed divisions which would person facilitated the dense labour that is present needed during post-payment verification.”

According to an Inquiry Of Ministry tabled successful Parliament connected May 16 and obtained by Blacklock’s Reporter, records amusement that the CRA paid $145.9 cardinal successful subsidies to insolvent companies, and subsidized 352 firms successful default of their national taxes.

Wage subsidies were besides fixed to Canadian offices of Chinese corporations specified arsenic the Bank of China, Air China, China Eastern Airlines, and China Southern Airlines Company, the enquiry said.

In his grounds earlier the Standing Committee connected Finance successful April 2020, Frank Vermaeten, adjunct commissioner astatine the CRA said that the bureau was capable to process claims successful a timely and close fashion.

Vermaeten was asked by Tory MP Marty Morantz however Canadians tin beryllium assured successful the services provided by CRA aft a study by the Canadian Federation of Independent Business graded the bureau a “D” for its quality to reply inquiries astatine its telephone centres.

“I’d accidental that with respect to our quality to supply backing and refunds and bash that accurately, I deliberation we are doing a precise bully job,” Vermaeten said.

Isaac Teo


Isaac Teo is an Epoch Times newsman based successful Toronto.