Tips from informants led auditors to recover more than $26 million in penalties and incorrect payments under the costliest pandemic relief program, records show..According to Blacklock's Reporter, tipsters led the Canada Revenue Agency to conduct hundreds of audits under the Canada Emergency Wage Subsidy..“Between April 2020 and last November 25, the agency processed 1,986 leads from the public,” cabinet wrote in an Inquiry Of Ministry tabled in the Commons. “All leads provided to the agency are reviewed for potential non-compliance and action is taken if warranted.”.Of the 1,986 leads, a total of 495 resulted in audits. About a third of audits, a total 132, identified $14.5 million in false payments..“$11.6 million in penalties have been applied,” said the Inquiry, for a total $26.1 million in penalties and payments slated for recovery. Remaining audits are still ongoing..The disclosures were prompted by questioning from Conservative MP Adam Chambers (Simcoe North, ON), who asked, “How many complaints did the Canada Revenue Agency receive concerning recipients misusing the subsidy, and of the complaints, how many did the agency investigate?”.The subsidy program ran from March 15, 2020 to Oct. 23, 2021. Payments totaled $100.6 billion. Nationwide, 413,600 incorporated businesses applied for wage rebates. Only 3,450 applications were rejected, fewer than 1%, though subsequent investigations showed subsidies were paid to insolvent companies, tax delinquents and subsidiaries of foreign corporations like the Bank of China..The Revenue Agency at the time claimed it carefully vetted applications..“I think we are doing a very good job,” Assistant Revenue Commissioner Frank Vermaeten told the House of Commons finance committee at the time. “We definitely have been working very hard.”.The Revenue Agency in a January 26 submission to the Commons public accounts committee said it did not know how much money was wasted under the program..“It’s too early in the compliance cycle of this program to provide concrete numbers on total ineligible claims with a degree of certainty,” said Revenue Commissioner Bob Hamilton..Auditor General Karen Hogan estimated $15.5 billion was wasted..“We estimated $15.5 billion in benefits were paid to recipients of the Canada Emergency Wage Subsidy who might not have been eligible to receive them,” testified Hogan. “We concluded all of those payments should be investigated further.”.Commissioner Hamilton disputed the figure under committee questioning..“Do you agree with $15 billion, yes or no?” asked MP Chambers. “No, we think that is an over-estimate,” replied Hamilton..“So you don’t agree with the $15 billion, you think it’s less, but you don’t know how much it might be?” asked Chambers..“It’s hard to say,” replied the Revenue commissioner.
Tips from informants led auditors to recover more than $26 million in penalties and incorrect payments under the costliest pandemic relief program, records show..According to Blacklock's Reporter, tipsters led the Canada Revenue Agency to conduct hundreds of audits under the Canada Emergency Wage Subsidy..“Between April 2020 and last November 25, the agency processed 1,986 leads from the public,” cabinet wrote in an Inquiry Of Ministry tabled in the Commons. “All leads provided to the agency are reviewed for potential non-compliance and action is taken if warranted.”.Of the 1,986 leads, a total of 495 resulted in audits. About a third of audits, a total 132, identified $14.5 million in false payments..“$11.6 million in penalties have been applied,” said the Inquiry, for a total $26.1 million in penalties and payments slated for recovery. Remaining audits are still ongoing..The disclosures were prompted by questioning from Conservative MP Adam Chambers (Simcoe North, ON), who asked, “How many complaints did the Canada Revenue Agency receive concerning recipients misusing the subsidy, and of the complaints, how many did the agency investigate?”.The subsidy program ran from March 15, 2020 to Oct. 23, 2021. Payments totaled $100.6 billion. Nationwide, 413,600 incorporated businesses applied for wage rebates. Only 3,450 applications were rejected, fewer than 1%, though subsequent investigations showed subsidies were paid to insolvent companies, tax delinquents and subsidiaries of foreign corporations like the Bank of China..The Revenue Agency at the time claimed it carefully vetted applications..“I think we are doing a very good job,” Assistant Revenue Commissioner Frank Vermaeten told the House of Commons finance committee at the time. “We definitely have been working very hard.”.The Revenue Agency in a January 26 submission to the Commons public accounts committee said it did not know how much money was wasted under the program..“It’s too early in the compliance cycle of this program to provide concrete numbers on total ineligible claims with a degree of certainty,” said Revenue Commissioner Bob Hamilton..Auditor General Karen Hogan estimated $15.5 billion was wasted..“We estimated $15.5 billion in benefits were paid to recipients of the Canada Emergency Wage Subsidy who might not have been eligible to receive them,” testified Hogan. “We concluded all of those payments should be investigated further.”.Commissioner Hamilton disputed the figure under committee questioning..“Do you agree with $15 billion, yes or no?” asked MP Chambers. “No, we think that is an over-estimate,” replied Hamilton..“So you don’t agree with the $15 billion, you think it’s less, but you don’t know how much it might be?” asked Chambers..“It’s hard to say,” replied the Revenue commissioner.
