Personal Finance

Locked: CERB - should I apply now and pay it back it later?

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  • May 16th, 2020 8:57 am
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[OP]
Jr. Member
Jul 22, 2018
125 posts
104 upvotes

CERB - should I apply now and pay it back it later?

I didnt get laid off but i did have to take 2 paycuts 10 percent each.

I heard the 2k per month is approved instantly and they check later.

Would it be a good idea to take the cash now and pay it back at a later date? My taxes get cut instantly so in a sense it is giving the govt interest free money yearly.

Thoughts?
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Member
Jan 16, 2009
463 posts
233 upvotes
Vancouver
there's a lot of warnings of "criminal offense" when you apply knowingly that you are not eligible.
Deal Addict
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Jul 22, 2015
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BardoonD52881 wrote: I didnt get laid off but i did have to take 2 paycuts 10 percent each.

I heard the 2k per month is approved instantly and they check later.

Would it be a good idea to take the cash now and pay it back at a later date? My taxes get cut instantly so in a sense it is giving the govt interest free money yearly.

Thoughts?
Do not apply for CERB unless you meet the qualifications.
Jr. Member
Mar 4, 2018
151 posts
30 upvotes
Hello, I just want to know if I updated my CRA direct deposit account the same day applied for the CERB, should I receive the deposit without delays? The system accepted direct deposit and everything was ok, I am just worried about the account change I did the same day. Obiously is the same bank and route number I just change the account number since the last account was canceled
Deal Addict
Jan 12, 2017
1295 posts
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I thought I saw someone here post that same day update of DD account didn't get carried into the CERB deposit, but their spouse updated the day before and had it deposited to the updated accnt.
gearnice wrote: Hello, I just want to know if I updated my CRA direct deposit account the same day applied for the CERB, should I receive the deposit without delays? The system accepted direct deposit and everything was ok, I am just worried about the account change I did the same day. Obiously is the same bank and route number I just change the account number since the last account was canceled
Jr. Member
Mar 4, 2018
151 posts
30 upvotes
Wow, my direct deposit has changed until today since the past friday April17. Had to pass 5 business days!!! So I think the deposit is coming within 3-5 more business days... I hope they didnt send me a check because I am here with my parents in Ontario, far from Alberta, hopefuly.
Jr. Member
Apr 16, 2020
129 posts
197 upvotes
Nah. Don't be a douche. Leave it for people that are eligible/need it.
Jr. Member
Mar 4, 2018
151 posts
30 upvotes
Reviewing myCRA account I found direct deposit was stopped. I provide my information again and imediately the status changed and confirmed, so I hope the CERB will be deposited within 3-5 business days or should I must apply again for CERB?
Newbie
Apr 23, 2020
1 posts
Not proud of this, but I paid off a high interest credit card with CERB ($4000). I plan to put away $200 a month until I have it saved. My goal is to have it ready to be paid back even before it gets clawed back. I will not be applying for any further entitlements for which I'm not entitled.
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Jan 31, 2006
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gearnice wrote: Hello, I just want to know if I updated my CRA direct deposit account the same day applied for the CERB, should I receive the deposit without delays? The system accepted direct deposit and everything was ok, I am just worried about the account change I did the same day. Obiously is the same bank and route number I just change the account number since the last account was canceled
No. It will take CRA sometimes to update your information on their side.
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Jan 31, 2006
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BardoonD52881 wrote: I didnt get laid off but i did have to take 2 paycuts 10 percent each.

I heard the 2k per month is approved instantly and they check later.

Would it be a good idea to take the cash now and pay it back at a later date? My taxes get cut instantly so in a sense it is giving the govt interest free money yearly.

Thoughts?
Did the paycut turn you to a fraud artist?
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Mar 25, 2012
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BardoonD52881 wrote: I didnt get laid off but i did have to take 2 paycuts 10 percent each.

I heard the 2k per month is approved instantly and they check later.

Would it be a good idea to take the cash now and pay it back at a later date? My taxes get cut instantly so in a sense it is giving the govt interest free money yearly.

Thoughts?
While it's unlikely you would be criminally charged for implying for something for which you were not eligible, the fact that you've posted strongly indicating that you believe you're not eligible suggests an intention to commit fraud. There's a lot of ambiguity in the CERB and potential for confusion making criminal charges unlikely, so if you legitimately applied thinking your pay cut was somehow eligible, you could make a case for applying, so long as you paid it back later (with or without interest, as demanded by the CRA). The difference is that you legitimately believed you were eligible; in this case, you've stated you strongly believe you're ineligible.

Thus, as someone else said, don't be a douche and do do not apply for something to which you're not entitled.

Cheers,
Doug
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Nov 12, 2011
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A lot of us are thinking about it, I do appreciate OP asking it out
Not buying something on sale ISN'T a crime, buying something not on sale IS.
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Feb 4, 2010
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I wish there was a toll free number to report people doing unethical things like this. I know somebody Offline that is doing something to abuse the system. People are so stupid that they don't realize that eventually us taxpayers have to pay for this. It's not free money you idiots. It's there to help people who really need it not for you lazy moochers who are unable to manage your financial affairs.
Deal Expert
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Feb 11, 2009
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This is getting out of hand...People are taking COVID19 as an excuse to commit fraud and screw over the rest. (In this case every hard working Canadian paying their fair share of taxes)

The worst was this post on Reddit:
https://www.reddit.com/r/TorontoRealEst ... right_now/
Real Estate Agent, MAcc, CPA, CA
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Apr 16, 2007
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deal_with_singh wrote: This is getting out of hand...People are taking COVID19 as an excuse to commit fraud and screw over the rest. (In this case every hard working Canadian paying their fair share of taxes)

The worst was this post on Reddit:
https://www.reddit.com/r/TorontoRealEst ... right_now/

Since the crisis began, Joe Hoffer,(Partner, Cohen Highley LLP Lawyers), has been advising landlords to work with tenants facing COVID-related income loss to come up with repayment plans unique to them.
“Landlords are entitled to see some verification from tenants to support the claim of loss of income and its connection to COVID-19,” he said.
“If the landlord is satisfied with that verification, then there is a good chance that the CERB program will supply funds to meet the tenant’s housing needs and avoid ongoing rent defaults.”

He also advises landlords to get familiar with CERB and other government assistance programs, recommending that they work with eligible tenants to incorporate the funds sourced from the programs into tenant repayment agreements. If the tenant refuses to cooperate with the process, or is simply not paying rent with the expectation the landlord has no remedy, Hoffer suggests issuing the N4 and following up with an eviction application; otherwise landlords will have no leverage to recover a judgment or repayment of arrears.

https://www.reminetwork.com/articles/he ... -defaults/

Filing the N4 will create a timestamp which can later be used as evidence for any fraud and/or CERB misuse investigation during the pandemic

*add.
Forwarded that reddit post to my co-worker that has been a landlord for the last 20 years.
He laughed and said he would love to go up against that a-hole.
Nothing in the C-13 Bill or any Provincial Bill states that everyone gets free rent/mortgage for the months starting April 1 until this pandemic shut-down lasts.
That landlord should call this guys place of employment every 1st day of the month to confirm he is employed and when this pandemic ends he can then proceed with a legal suit which will probably end with a judgment and then wage garnishment.
Last edited by mikeymike1 on Apr 25th, 2020 1:54 pm, edited 1 time in total.
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Mar 31, 2009
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I find myself wondering if every single person in Canada is going to apply for CERB under the pretenses of "I'll just give it back later if I get audited"

I wonder if once this is all tallied the government will/should just convert CERB to a student loan type of deal and eventually just take all the money back from *everyone* who took it. Granted, that's not how it's been advertised, but it seems like a reasonable thing to do. Obviously, they'd be fairly tolerant of people's situations and give favorable interest rates and payback terms, etc.

As a tax payer, I would feel much better about this situation if people eventually had to pay the money back, instead of it all being paid for out of the tax money paid by people who actually are working still at full time jobs in essential businesses.
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Jan 15, 2017
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hierophant wrote: I wish there was a toll free number to report people doing unethical things like this. I know somebody Offline that is doing something to abuse the system. People are so stupid that they don't realize that eventually us taxpayers have to pay for this. It's not free money you idiots. It's there to help people who really need it not for you lazy moochers who are unable to manage your financial affairs.
Do like I have done and email Justin Trudeau, Diane Lebouthillier (Minister of National Revenue - CRA) and my local MP demanding that the gov't come down hard on abusers of the CERB. Tell them that you want changes to the CERB to include penalties, fines and criminal charges for those who are found to have deliberately abused the CERB.
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Jul 12, 2008
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skeet50 wrote: Do like I have done and email Justin Trudeau, Diane Lebouthillier (Minister of National Revenue - CRA) and my local MP demanding that the gov't come down hard on abusers of the CERB. Tell them that you want changes to the CERB to include penalties, fines and criminal charges for those who are found to have deliberately abused the CERB.
Best to tell them to make it UBI and give the money to everyone, why criminalize fellow Canadians for 8,000 that is taxable? A lot of people here that make 6 figures will maybe get like 4 to 5k
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badmus wrote: Best to tell them to make it UBI and give the money to everyone, why criminalize fellow Canadians for 8,000 that is taxable? A lot of people here that make 6 figures will maybe get like 4 to 5k
Because those "fellow canadians" are being "uncanadian" by abusing the system knowingly. Its these type of people that ruin a good thing for everyone.

The system is meant to help people keep food on the table, not fill the "entitlement" of abusers who think they can snipe a free $2k a month.

If people just allowed the honour system to work, we wouldn't need to waste so much money on the enforcement of it. Simple as that.


I discussed this with a colleague at the CRA. They are apparently going to be using an algorithm as a "First flag" where they see if someones income for the year was flat or higher than the previous year and they applied for CERB.

That will be round 1, they will also be doing generic random audits as round 2. And from what I've been told they may audit random larger employers for Payroll records to flag those that were being paid during that month and claimed CERB.
Real Estate Agent, MAcc, CPA, CA

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