October 15, 2020
The Government of Canada has introduced the Canada Recovery Benefits Act, which authorizes the payment of the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), and the Canada Recovery Caregiving Benefit (CRCB) to support Canada’s economic recovery in response to COVID-19 and help Canadians receive the support they need during these challenging times.
The CRB is intended to support individuals whose income has dropped or who have not returned due to COVID-19. It will provide eligible workers with $500 per week (taxable, tax deducted at source) for up to 26 weeks for those who have stopped working and who are not eligible for EI, or had their employment/self-employment income reduced by at least 50% due to COVID-19. This benefit will be paid in two-week periods.
The CRSB is intended to support workers who are sick or must self-isolate for reasons related to COVID-19. It will provide $500 per week (taxable, tax deducted at source) for up to a maximum of two weeks, for workers who are unable to work for at least 50% of the week because they contracted COVID-19, self-isolated for reasons related to COVID-19, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19. This benefit will be paid in one-week periods.
The CRCB is intended to support eligible workers who are unable to work because they must care for a child, family member or dependent for reasons related to COVID-19. It will provide $500 per week (taxable, tax deducted at source) for up to 26 weeks per household for workers unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19. This benefit will be paid in one-week periods.
Pursuant to section 27 of the Canada Recovery Benefits Act, the CRB, CRSB, and CRCB:
- are not subject to the operation of any law relating to bankruptcy or insolvency;
- cannot be assigned, charged, attached or given as security;
- cannot be retained by way of deduction, set-off or compensation under any Act of Parliament other than this Act; and
- are not garnishable moneys for the purposes of the Family Orders and Agreements Enforcement Assistance Act.
Therefore, these payments are not subject to the operation of the Bankruptcy and Insolvency Act (BIA), including paragraph 67(1)(c) and sections 68 and 71, and are not to be included as property or income pursuant to the BIA.
CRB, CRSB, and CRCB amounts should not be included as income on Form 65 for the debtor or other family unit member. However, trustees should refer to CRB, CRSB, and CRCB amounts by way of a footnote on Form 65 in the interest of transparency.
The Government of Canada has published details about the CRB, CRSB and CRCB at the following link: https://www.canada.ca/en/services/benefits/ei/cerb-application/transition.html#h2.2.
Any questions may be sent via email to ic.osbregulatoryaffairs-affairesreglementairesbsf.ic@canada.ca.