Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, June 23, 2021 -

Because the Canada Revenue Agency (CRA) chose to deliver payments of the Canada Emergency Wage Subsidy (CEWS) rapidly, it did not establish tighter controls. Therefore, it will have to rely mainly on costly comprehensive audits, according to a report by the House of Commons Standing Committee on Public Accounts that was presented today by Committee Chair Kelly Block.

In March 2021, the Office of the Auditor General of Canada released a performance audit whose objective was to determine whether Finance Canada provided analysis on the CEWS program and whether the Agency limited abuse by establishing appropriate controls in its administration of the program.

The audit found that even though Finance Canada only performed a partial analysis of the initial design of the CEWS program, it subsequently performed a sound and complete analysis to inform the changes to the program. Also, CRA had chosen not to establish tighter controls, and lacked the sub-annual and up-to-date earnings and tax information it needed to efficiently assess applications. Therefore, it will have to rely mainly on costly comprehensive audits starting in spring 2021.

In light of the very large value of $98 billion in CEWS payments, the Committee made one recommendation to Finance Canada and four to CRA to ensure that the program is evaluated properly and that the Agency can recover overpayments and improve the integrity and efficiency of the programs it oversees.