How will CRA verify the CERB eligibility for self employed individuals? For employees, there will be a modified T4 that will breakdown income by reporting period. However, for self employed individuals, there is no specific reporting to CRA (that I am aware of) that shows income and expenses by month.
Taxpayers will need to prove that they made NET self employment income of at least $5000 in 2019 or in the 12 month proceeding their CERB application AND that they did not earn more than $1000 in GROSS self employment income per each 4 week reporting period.
I have a client who has already received a letter from CRA stating that " Based on the records we have at this time, we cannot confirm that you meet this requirement." I believe that this is due to their 2019 NET self employment income being less than $5k.
I could re-file their 2019 return with fewer expenses as they were close to the limit but this would trigger a small amount of tax.
Anyone have any insight?