Since the Canada Emergency Response Benefit application process went live last Monday, many have remarked how easy it is to get approved.

Maybe too easy.

The Star has learned that every person who applies for the CERB will be automatically approved, whether they qualify or not.

The application takes minutes and those who set up direct deposit will receive funds within a few days. The catch is that if it is later determined the applicant was not eligible, they will have to repay the funds when taxes for 2020 are due next spring.

If applicants are eligible, they can keep the payment but it will be considered taxable income.

According to the office of federal Minister of Employment Carla Qualtrough, to get the CERB you just have to say that you’re eligible — the verification will be done later.

“Come tax time next year the (government) would be able to verify all the eligibility criteria,” a spokesperson for the minister said.

The problem is, there’s a lot of confusion about who is eligible and who isn’t — creating a scenario where thousands have money unexpectedly clawed back a year from now.

Social media has been flooded this week with stories of people getting several thousand dollars through the CERB program, which is making payments retroactive to March 15. The program provides $2,000 per month for four months to those who apply, or $500 per week.

Some have expressed concern that they’re not sure whether they qualified for the amount they received, and they are worried about having to pay some or all of it back at a later date.

Mika Ramshaw of Abbotsford, British Columbia, said he applied for Employment Insurance (EI) on March 24. He did not apply for CERB, as he knew his application would automatically be transferred over.

Last Wednesday, he received two payments: one for $1,000 and one for $2,000. At first he worried he was getting more than he was owed. But after checking Twitter and talking to a few people, he realized one was a back payment from CERB.

“I was thrilled,” he said.

But the next morning he woke up to another direct deposit, this one amounting to $443, from the same source. He later discovered it was an increase to his GST/HST credit amount, but at first he wondered if it was a mistake and would have to be repaid.

“This whole system is just very confusing,” he said. “What will I owe ... at the end of the day? Did I do this the right way?”

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In response to Canadians concerned about getting double payments, including those who applied for both EI and CERB, the Canada Revenue Agency (CRA), which administers the CERB program, tweeted that applications can’t be cancelled.

It said applications for CERB are processed immediately because it’s classified as an emergency payment. If you have applied in error, you’ll be asked to repay what you received at a later date.

The Star has reached out to the CRA for comment, but it did not immediately respond.

Ramshaw said he’s stressed just thinking about tax season next year, and the idea he might owe a lot more than he expects.

“When next year comes, who even knows what it’s going to look like?”

According to Silvia Jacinto, tax partner at Crowe Soberman LLP, it’s hard for people to know for sure whether they’re eligible for CERB since there are still very few details out — and things are changing every day.

“I think we’re going to get more details in the coming weeks,” she said. “There are still a lot of questions.”

One thing is for sure, though: “You can’t double-dip,” she said, meaning you can’t get payment from both EI and CERB.

She said it makes sense that the CERB program is not checking eligibility — otherwise, payments would take much longer to process, as they do for EI.

Complicating the matter is that even if you are eligible for CERB, the payments are taxable, and unlike with EI, taxes are not deducted at source.

Christina Carello of Toronto said she was unclear on whether she would have to pay taxes on the payment and found that it is “impossible” to get through on the phone lines. “Nobody knows what to do,” she told the Star in an email.

Jacinto says the payment are indeed taxable and the amount due will depend on your total income for 2020. However, she acknowledged that it may be hard for some people to prepare for this.

If you’re applying for CERB right now ... you’re probably spending every dollar you receive,” she said. She advises that recipients put some extra money away when they do regain employment, so they are able to pay a potentially higher tax bill.

With files from Alex Ballingall.

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