There is no current estimate of how many billions were wasted on the costliest pandemic subsidy program, the Canada Revenue Agency yesterday told the House of Commons public accounts committee. “It really was a first-time thing for everybody, so there’s lots of lessons to be learned,” testified Revenue Commissioner Bob Hamilton..“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 Hamilton. “When will we have a better idea?” asked Conservative MP Kelly McCauley (Edmonton West, AB). “We know we’re going to be in this until 2025,” replied Hamilton..The Canada Emergency Wage Subsidy to businesses cost $100.6 billion. Audits found the Canada Revenue Agency failed to make cursory checks on companies that applied for grants..“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 Auditor General Karen Hogan. “We concluded all of those payments should be investigated further.”.Hogan said she was concerned about “limited progress” made by auditors in recovering billions misspent on ineligible claimants. “The federal government has spent billions of dollars and does not know whether that money always went to eligible recipients,” said Hogan. “In the interest of being fair to all taxpayers the government must carry out rigorous verification work.”.“I am just aghast,” said McCauley. “This is a huge amount of money,” he added. “Who at the Canada Revenue Agency is making the decision that we’re willing to risk writing off $15 billion, $20 billion, $25 billion of taxpayers’ money?”.Conservative MP Adam Chambers (Simcoe North, ON) noted payments under the wage subsidy included “money that went to eligible recipients that many would deem unworthy, $6 billion to $7 billion to publicly-traded companies that continued to pay dividends to shareholders,” he said..Federal records show another $145.9 million was paid to companies in tax default or insolvency. Bankrupts and tax delinquents were not prohibited from applying for wage subsidies under Bill C-14 An Act Respecting Certain Measures In Response To COVID-19 that hurriedly passed Parliament on April 11, 2020..Revenue Commissioner Hamilton yesterday disputed estimates of how many billions were wasted under the wage subsidy program but had no figures of his own. “Do you agree with $15 billion, yes or no?” asked 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.
There is no current estimate of how many billions were wasted on the costliest pandemic subsidy program, the Canada Revenue Agency yesterday told the House of Commons public accounts committee. “It really was a first-time thing for everybody, so there’s lots of lessons to be learned,” testified Revenue Commissioner Bob Hamilton..“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 Hamilton. “When will we have a better idea?” asked Conservative MP Kelly McCauley (Edmonton West, AB). “We know we’re going to be in this until 2025,” replied Hamilton..The Canada Emergency Wage Subsidy to businesses cost $100.6 billion. Audits found the Canada Revenue Agency failed to make cursory checks on companies that applied for grants..“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 Auditor General Karen Hogan. “We concluded all of those payments should be investigated further.”.Hogan said she was concerned about “limited progress” made by auditors in recovering billions misspent on ineligible claimants. “The federal government has spent billions of dollars and does not know whether that money always went to eligible recipients,” said Hogan. “In the interest of being fair to all taxpayers the government must carry out rigorous verification work.”.“I am just aghast,” said McCauley. “This is a huge amount of money,” he added. “Who at the Canada Revenue Agency is making the decision that we’re willing to risk writing off $15 billion, $20 billion, $25 billion of taxpayers’ money?”.Conservative MP Adam Chambers (Simcoe North, ON) noted payments under the wage subsidy included “money that went to eligible recipients that many would deem unworthy, $6 billion to $7 billion to publicly-traded companies that continued to pay dividends to shareholders,” he said..Federal records show another $145.9 million was paid to companies in tax default or insolvency. Bankrupts and tax delinquents were not prohibited from applying for wage subsidies under Bill C-14 An Act Respecting Certain Measures In Response To COVID-19 that hurriedly passed Parliament on April 11, 2020..Revenue Commissioner Hamilton yesterday disputed estimates of how many billions were wasted under the wage subsidy program but had no figures of his own. “Do you agree with $15 billion, yes or no?” asked 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.
