A Niagara Falls restaurant owner has been ordered to pay back $14K in CERB benefits. She says it’s unfair

The deadline to file taxes is Thursday at midnight, and if you owe money you should try to get it done to avoid penalties and interest. Pat Foran explains.

A restaurant owner from Niagara Falls has been ordered to repay $14,000 in benefits that she received during the COVID-19 pandemic after already facing the clawback of more than $24,000 in other payments that she received through a separate pandemic-era program.

Jarmila Rejvold tells CTV News Toronto that she had to close her restaurant for two years during the pandemic and also developed a illness during that time.

That prompted her to apply for the Canadian Emergency Response Benefit (CERB) and the Canadian Recovery Benefit (CRB), which were temporary federal programs during the pandemic.

She said she received more than $24,600 in CRB payments.

“We didn’t have any business and the government’s offer to give us benefits was very welcome,” said Rejvold.

However, years later, she was advised she wasn’t eligible for the benefits and had to pay it back.

After she paid the $24,600, she was told she received funds she shouldn’t have through the government’s CERB program.

She now must also repay $14,000 for the CERB payments.

“We have determined you are not eligible for the Canadian Emergency Response Benefit (CERB). You did not earn at least $5,000 (before taxes) of employment or self-employment income in 2019 or in the 12 months before your application,” a letter sent to Rejvold from the Canada Revenue Agency (CRA) and reviewed by CTV News stated.

Rejvold told CTV News she appealed the decision but lost and must now come up with another $14,000.

She is just one of the many taxpayers who are being told to pay back the pandemic-related benefits. During the COVID-19 pandemic, many applied for the Canadian Emergency Response Benefit (CERB) and other programs.

According to the CRA, more than $10 billion in pandemic-related benefits are owed. As of December 2025, about 1.4 million Canadians already paid back $3.3 billion.

When CTV News reached out to the CRA, a spokesperson said in a statement that the agency understands why Canadians like Rejvold “may feel concerned or frustrated when they receive a letter informing them that they must repay the amounts received.”

The spokesperson noted that confidentiality provisions of the Income Tax Act prevent the agency from commenting on specific cases. That said, the spokesperson pointed out that CERB had clear eligibility criteria and applicants were informed that reviews could take place after payments were made.

“To be eligible, a person had to live in Canada, be at least 15 years old, have earned at least $5,000 in the previous 12 months or in 2019, have stopped working or had their hours reduced due to COVID-19, and not have earned more than $1,000 during the applicable benefit period,” said the spokesperson, adding that all were posted on the Canadian government’s website.

“When information indicates that an eligibility criterion may not have been met, the Agency contacts the person and may request documentation to confirm their situation. The letters explain what documents are needed, how to submit them, and the deadlines. There is no element of random selection. Claimants were informed from the outset that reviews would be conducted and that the information provided could be verified after payments were made.”

Rejvold told CTV News she’s disappointed and maintained she was an eligible recipient of the CERB.

“I’m very disappointed and it’s stressful,” Rejvold said.

Earlier this year, an Ottawa hairstylist was also asked to repay $17,000 in COVID-19 benefits, which the CRA stated she was ineligible for.

The CRA is combing through tax returns and hopes to still recover more than $10 billion in COVID-19 payments, which the CRA says many Canadians should not have received.

If you’re asked to repay COVID-19 benefits, the CRA says each case will be reviewed. Payment plans can be set up and will not apply interest or penalties.