Proposed $2,000/month Canada Emergency Response Benefit | Page 3 | General financial discussion | Discussion forum

Bud said
How will they check.  

I believe you will get the benefit almost right away if you apply for it. They won't check now, as many still hasn't filed their 2019 tax return yet. Plus the govt wants money get to the needed soon as possible. But I definitely saw somewhere on the Canada website that these applications will be audited within the year. The benefits will be repaid with penalties by the ineligibles. Just look at the number of new hires at CRA just for the purpose of auditing tax evasion in the past 4 years make this no bluff.

For employees, your T4s. For self-employed individuals, be prepared for proof of income from your employer or clients. It can't be made up. This is a benefit for Workers.

For seasonal workers that are supposed to start in April and now cant, will they consider gaming the system if they apply starting mid April/May ? I hope the government is more clear on specifics like that.

Norman1 said
Such seasonal workers do not qualify for the CERB because their employment ended last year, long before COVID-19 was an issue.  

I read some news saying 500k workers fall under that category. Govt look after student's summer job and not seasonal workers that work every year.
If anything the $5k min earn from past 12 months should qualify a seasonal worker in my mind.

Bud said They are bailing out speculators.

I strongly disagree with this. How do you figure, Bud?

Is cra able to cross reference with the provinces? For example, if people are receiving benefits from a province will their radar pick that up.

They will be able to check if you received provincial workers' compensation or income assistance payments; however, nothing in the CERB precludes one from simultaneously receiving one of those payments. Think of someone who applied for provincial income assistance because they were EI ineligible before the CERB was announced. The CERB payment may effect eligibility for provincial workers' compensation or income assistance.

Note, too, the CERB criteria is pretty inadequate. It does nothing for those who worked two or more jobs and lost one or more of their jobs, retaining one. It does nothing for post-secondary or graduating secondary students, who are either ineligible for Canada Summer Jobs jobs* (*to the extent they're all still offered) or otherwise unable to find employment for the duration of the emergency.

We're on pace to have a $180 billion deficit because of this (a conservative estimate)...what's another $20 billion to fill in the cracks?

Cheers,
Doug

Bud said

Doug said

Bud said They are bailing out speculators.

I strongly disagree with this. How do you figure, Bud?

They will be able to check if you received provincial workers' compensation or income assistance payments
offered)

Will the provinces be able to cross reference their "clients" to see who's receiving cerb? Then clawback benefits.

"The central bank also provided more detail on its market interventions, including plans to buy corporate bonds both at an investment-grade level as well as high-yield, or junk, bonds." Cnbc  

1) They have an audit team that can compel the client to provide income source information, and they, too, can review clients' income tax returns as the client has to agree to data sharing between the ministry and the CRA to be eligible to receive benefits.

2) That's not a bailout. That's providing liquidity. The central bank will not be buying bonds at par value. They're just there to provide liquidity support in the market by buying bonds at the prevailing market rates so that there is a buyer for each willing seller. In many cases, they'll probably be buying bonds at discounts, so they may actually turn a profit when sold. BoC Sr. Deputy Governor Carolyn Wilkins hinted that the BoC's Governing Council may consider further measures, at a future meeting, to provide liquidity in the Canadian corporate bond market as well. So it likely won't be limited to just the U.S. Fed (and Japan's central bank, which has been doing this for years).

Cheers,
Doug

savemoresaveoften said

Well the trick is if the bonds last traded at 90 cents on the dollar and no bid at all and something trying to sell, what level is the govt buying it at.... If its 60 cents bid, its pretty useless...  

I suspect they are working with their primary dealers to stipulate bid/ask spread entry points. It wouldn't be at 60 cents, that's for sure. I doubt, very much, it'd be more than 10 cents below the current ask price.

Cheers,
Doug

The CERB was designed to help those who were working but now aren't due to covid-19, that'll answer some of these questions. It was not designed for those who weren't working anyway, weren't making employment income, to start getting money due to covid-19.

This year farmers won't be able to get in the foreign workers to do the work Canadians won't do. Why not pay students, etc to work those jobs this year instead of paying them not to work and losing agricultural production due to lack of other workers?

Norman1 said

savemoresaveoften said

I read some news saying 500k workers fall under that category. Govt look after student's summer job and not seasonal workers that work every year.
If anything the $5k min earn from past 12 months should qualify a seasonal worker in my mind.

It doesn't because the $5,000 of employment/self-employment income, last year or in the last 12 months, just qualifies the person to be a "worker" under the section 2 of the Canada Emergency Response Benefit Act.

The "worker" needs to further meet the eligibility requirements in section 6. One of the requirements is paragraph 6(1)(a):

6(1)(a) the worker, whether employed or self-employed, ceases working for reasons related to COVID-19 for at least 14 consecutive days within the four-week period in respect of which they apply for the payment; and …

Ceasing to work last year because the season ended or resigning a job last year to return to school does not meet that requirement.  

I am just saying seasonal workers should be covered as well. If I look at the other emergency help plans, 75% wage subsidy (from 10% jump) and 15% revenue drop (from 30%) are just way too generous and senseless, especially the 15% revenue drop. Any business can experience 15% revenue drop or more during evening normal / normal recession times. The govt did not / should not subsidize wage in the past, yet doing it now... 30% is the right amount and yet Trudeau just wanted to be Santa and buy votes, yet at the same time leaving some other vulnerable sectors....

NDP proposal is just to give everybody money and then tax it back later from those who didn't need it (if I understood Singh right). That would be cool for some (say students or people who just don't work) who won't have enough income to later get it clawed back. Minority government, very possible CERB will be amended a few times.