CRA head says it 'wouldn't be worth the effort' to review all ineligible pandemic payments
![Canada Revenue Agency The Canada Revenue Agency sign outside the National Headquarters at the Connaught Building in Ottawa is seen on Monday, March 1, 2021. (THE CANADIAN PRESS/Justin Tang)](/content/dam/ctvnews/en/images/2023/1/27/canada-revenue-agency-1-6250193-1674873756018.jpg)
The head of the Canada Revenue Agency (CRA) says it "wouldn't be worth the effort" to fully review $15.5 billion in potentially ineligible pandemic wage benefit payments flagged by Canada's Auditor General.
"We take generally almost exclusively an approach within the agency to focus on a risk-based assessment," CRA Commissioner Bob Hamilton told members of Parliament Thursday afternoon. "So, take a look at the information that we have at our disposal, try to identify where the highest risks are, and go after those and the highest risk and the potential for recovery, and not cover 100 per cent of people."
Hamilton appeared before the Standing Committee on Public Accounts on Thursday alongside auditor general Karen Hogan.
"We don't take issue with the risk-based approach the [CRA]'s made," Hogan said during the two-hour meeting. "It's really the amount of work, the extent of work, that we don't believe is sufficient in order to meet sort of that fairness threshold of treating every taxpayer—whether they be an individual or business—fairly."
In December, Hogan's office tabled a performance audit that identified an estimated $4.6 billion in benefit over-payments to ineligible individuals. The audit also highlighted approximately $27.4 billion in payments to individuals and employers that should be "investigated further" for potential ineligibility, including $15.5 billion that was paid out through the Canada Emergency Wage Subsidy (CEWS) program, which was the topic of Thursday's committee meeting.
"The first step is to identify payments to ineligible recipients, then the decision can be made to go after collection or not collection," Hogan told lawmakers. "I just encourage the government to be a lot more transparent with what they're doing, and I think they need to do more work."
For his part, Hamilton took issue with calculations in the audit, saying that the true amount of ineligible payments is expected to be "significantly lower" than the Auditor General's "overestimate," which was based on sales tax data.
"It's too early to estimate the amount of money overpaid," Hamilton said at one point, speaking through an interpreter in French. "But we do have experience [and] we're able to say that about six per cent of businesses or individuals received money but were not eligible."
The CEWS went directly to employers to help keep employees on payrolls during the COVID-19 pandemic. The $100.7 billion program accounted for nearly half of the estimated $210.7 billion the Liberals spent on COVID-19 aid, which also included the Canada Emergency Response Benefit (CERB) and its successor program, the Canada Recovery Benefit (CRB), which went directly to individuals.
"In my view, based on what we've seen so far, it wouldn't be worth the effort," Hamilton said of investigating all of the $15.5 billion in potential ineligible wage subsidies outlined by the auditor general. "Based on our evidence to date, we see businesses generally complying… We have some pockets of people that have intentionally misled and we're pursuing those."
Focusing on "claims that are most likely to be ineligible or overstated," Hamilton explained, "optimizes recoveries and ensures that high risk claims are addressed while making efficient use a CRA resources."
In December, the auditor general's office took aim at the government's reliance on attestations and applicants' honesty for benefit eligibility, and said authorities were "falling short" when it came to post-payment verification.
"In this instance, there was very limited prepayment controls with the intention of doing rigorous post-payment work," Hogan said Thursday. "The only way you can find out whether or not a business is eligible would be to do that post-payment work, because there is no other information to verify eligibility."
Former Liberal finance minister Bill Morneau has been a vocal critic of the government's pandemic-related spending. In his new book Where to From Here, Morneau claims Prime Minister Justin Trudeau and his advisors regularly overruled recommendations from his department in favour of larger pandemic payouts and political points, which contributed to Morneau resigning from his post in August 2020. He cites the example of the CEWS and seeing the prime minister announce an amount of funding that was "significantly higher" than what he thought they had agreed on.
"It was one of the worst moments of my political life," Morneau writes. "During the period when the largest government expenditures as a portion of GDP were made in the shortest time since the advent of World War II, calculations and recommendations from the Ministry of Finance were basically disregarded in favour of winning a popularity contest."
With files from CTV News Senior Digital Parliamentary Reporter Rachel Aiello
Correction
This story has been updated to correct when Bill Morneau resigned.
IN DEPTH
![](https://www.ctvnews.ca/polopoly_fs/1.6922467.1718138898!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
![](https://www.ctvnews.ca/polopoly_fs/1.6850735.1713368648!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6967777.1721254561!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
BREAKING U.S President Joe Biden tests positive for COVID-19, White House says
U.S. President Joe Biden tested positive for COVID-19 while on a campaign trip to Las Vegas on Wednesday and is experiencing mild symptoms, the White House said.
Trudeau cabinet to meet Friday as speculation around a shuffle swirls
Prime Minister Justin Trudeau's cabinet is expected to meet on Friday, CTV News has learned. The agenda sets aside 30 minutes for ministers to meet virtually Friday morning, to talk about 'appointments.' The meeting comes amid speculation around the prime minister shaking up his inner circle.
Poilievre vows to fire envoy as Canada buys a $9M condo for diplomat in NYC
Conservative Leader Pierre Poilievre is promising to fire Canada’s consul general in New York City if the Tories wins the next federal election.
'I feel like he did not die in vain': Family responds to report on tortured B.C. boy's death
The heartbreak over the death of an Indigenous 11-year-old Fraser Valley boy, tortured and then ultimately killed by his foster parents, was felt by all who knew him.
Rare photos reveal uncontacted tribe in Peruvian Amazon as loggers move in
Rare images of the Mashco Piro, an uncontacted Indigenous tribe in the remote Peruvian Amazon, were published on Tuesday by Survival International,
Here's who will take the podium today at the Republican National Convention
This year's Republican National Convention continued Wednesday with a packed list of speakers including vice presidential candidate Sen. JD Vance, Donald Trump Jr. and Texas Gov. Greg Abbott.
In ethics hearing about Liberal minister, business exec admits he lied to a reporter
The chief witness in a parliamentary probe said Wednesday that he lied to a reporter when asked about ethics allegations against a federal minister.
'Tragic trend' of fatal crashes prompts plea from B.C. Highway Patrol
Mounties who patrol B.C.'s highways are urging drivers in the province to slow down amid a 'tragic trend' of recent, fatal crashes.
Trump shooter requested Saturday off from work and told colleagues he'd be back at work Sunday, officials say
The shooter who attempted to assassinate former U.S. president Donald Trump on Saturday normally would have been at work that day, but he told his boss he needed that the day off because he had 'something to do,' according to multiple law enforcement officials.
Local Spotlight
![](https://www.ctvnews.ca/polopoly_fs/1.6967290.1721236649!/httpImage/image.png_gen/derivatives/landscape_800/image.png)
Cemetery 'investigators' connecting families with forgotten gravestones
A pair of cemetery investigators are cleaning and preserving as many gravestones they have permission to work on, as they conduct their research and document gravestones.
'Just so grateful': B.C. man uses Google Lens to reunite woman with lost family heirloom
After more than three years, a B.C. woman has been reunited with a lost family heirloom.
Edmonton man contributes thousands of photos to Google while dressed as an alien
One of Edmonton’s main contributors to Google Street View is a man who dresses up as an alien.
Nearly 10 years after it was first pitched, Vancouverites can climb the stairway to nowhere
Nearly 10 years after it was first proposed, an interactive piece of public art is officially open in Vancouver's Hastings Park.
Sudbury's Big Nickel celebrates its 60th birthday
An event July 22 at Dynamic Earth in Sudbury will mark the 60th anniversary of the iconic Big Nickel, the largest coin in the world.
Cyclist riding across Canada for children's charity stops in Montreal
Cyclist Jagjeet Singh cruised through Montreal on Sunday morning as he rides across the country to raise money for a children's charity.
Rare marine fossil found in eastern Saskatchewan
A rare ammonite fossil – about 75 million years old - has been discovered in eastern Saskatchewan.
Ontario dad highlights Calgary Flames' act of kindness
Seven-year-old goalie Hudson Hardill is an unlikely Calgary Flames fan, being that he lives in Peterborough, Ont., and his dad Chris is a Toronto Maple Leafs fan.
'I nearly died': WestJet employee and Spice Girls superfan dances with Mel C
A WestJet employee's chance encounter on a recent flight spiced up her life in a big way.