Opening a refund channel, emphasizing the application criteria again and again, announcing punitive measures... So we must face this matter seriously, and talk about the same old thing: What are the application criteria for CERB?
The news that CERB will extend its payment period has excited many people. Originally, you could only apply for a maximum of 4 months and 8,000 Canadian dollars, but now you can apply for two more months, which means you can receive a maximum of 12,000 Canadian dollars in subsidies. Although the epidemic in Canada is now under control and the economy is gradually restarting, it is still not easy to find a job. Therefore, being able to receive two more months of subsidies is undoubtedly a reassurance for everyone. However, during the CERB application process, the government also found that some people were taking the opportunity to "take advantage of loopholes". They applied even though they did not meet the requirements, and there were even cases of fraud. Of course, not everyone did it intentionally. A considerable number of friends are in an "unclear" state, that is, I don’t know whether I can apply, and whether my situation is considered "false claiming". So in this video, I want to help you sort out the four important elements of applying for CERB, and through some practical examples, let you know whether you are eligible to apply.
What are the four key elements for applying for CERB?
The first point is that you are unemployed and have no income due to the epidemic. The income mentioned here refers specifically to your labor income, that is, you originally relied on working to make money to live, but because of the epidemic, you suddenly lost your job and lost your income, which affected your normal life. At this time, you belong to the scope of application. But this income does not include your investment income, such as stocks, dividends, rental income, etc., all of which do not count. Because the original intention of the government to introduce CERB is to help the emergency but not the poor! For example, if you are a chef in a restaurant, because of the epidemic, the restaurant is closed, and you are unemployed, then you meet certain conditions for applying for CERB; it is like you are a self-employed fitness coach. Because of the epidemic, the gym is closed, and no one comes to you to practice fitness, you have no income, which also meets the conditions of unemployment we are talking about. But if you say that my source of income is rent, but now no one rents my house, it is vacant, and my income is gone, then do I count as unemployed and have no income due to the epidemic? This definitely does not count; because only when your income is from work, or you are self-employed, or earn money by your skills, it is the concept of "income" lost due to the epidemic emphasized in the CERB application conditions.
Let's talk about the second key factor for application, which is that you are unemployed due to the epidemic. The unemployment mentioned here is passive unemployment, not active unemployment. For example, because of the epidemic, the company laid off or closed down, and you were laid off. This is the so-called passive unemployment, but if you resigned voluntarily, no matter what the reason is, it does not fall into the category of unemployment due to the epidemic. Just like we had a client before, she was a cashier in a supermarket. At the beginning of the epidemic, the supermarket required employees not to wear masks when working, so she felt that she had to contact so many people coming and going every day. What if she was infected and then infected her family, so she took the initiative to resign, and then naturally thought that she belonged to the category of unemployment due to the epidemic, so she applied for CERB. But in fact, she did not meet the application conditions, because the supermarket did not fire you, you took the initiative to resign, so it was not passive unemployment, and did not meet the application conditions. At that time, our advice to her was that she should return the CERB that she had applied for to avoid the risk of being investigated by the tax bureau later.
What is the third key factor for application? That is, in the past 12 months, or in 2019, you have an income of 5,000 Canadian dollars. The income here is the first point we mentioned before, your income from work, not investment income, such as overseas assets, some of your investment income, which cannot be counted. However, this 5,000 Canadian dollars of income is not limited to Canadian income, but can be counted as income from work worldwide. For example, we have a client who just immigrated to Canada at the end of 2019. In February, he finally found a job, but the epidemic happened. The company closed down and he lost his job. He only came to work for a month and his income was less than 5,000 Canadian dollars, but plus his income in China in 2019, it exceeded 5,000, so he is eligible to apply for CERB. However, some people will ask, my husband is an office worker, I am a full-time wife, in 2019, I introduced some clients to the real estate agent and got a referral fee of 5,000 Canadian dollars, can I also apply? This is not acceptable, because this income is sudden and does not belong to your normal labor income, and you cannot prove that you have interrupted this source of income due to the epidemic, so you cannot apply. Even if your application is successful, there is a high possibility that you will be investigated by the tax bureau. The government has recently introduced very strict punishment measures for fraudulent applications for CERB. Once you are found, you will not only be fined 5,000 Canadian dollars, but also face six months in prison, and even be deported. So the consequences are very serious, so you need to be cautious when applying.
The fourth point is that because each cycle of CERB is applied independently, every time you apply, you need to reconsider whether you meet the above three conditions: whether you have lost your normal job income due to the epidemic, whether you have been fired due to the epidemic; the third point is whether you have a work income of 5,000 Canadian dollars in the past 12 months or in 2019. Only when you meet these three conditions, you are eligible to apply for CERB. Otherwise, even if you apply, you have to return it, otherwise, you will face severe punishment from the tax bureau, a fine of 5,000 Canadian dollars, six months in prison, or even deportation.
These are the four key elements of applying for CERB that I want to talk about today. However, specific issues still need to be analyzed in detail. We will analyze some cases in detail in other videos, as well as some misunderstandings about the CERB application conditions, and how the tax bureau will check whether you meet the requirements, etc. So, please pay close attention to our channel. Click the small bell below the video, and you will be able to see our latest content as soon as possible.
