Have i commited welfare fraud?
July 19, 2012 8:00 AM Subscribe
Three-parter: Can the Canada Revenue Agency review information from a closed bank account? If so, would they search for this information while assessing someone's eligibility for social assistance? If so, have I done something I'll get in trouble for?
I haven't been able to find a job and I am concerned about paying my rent, so I applied for social assistance. I have been doing clinical trials and the occasional temporary job for money. Both pay cheques, which I've cashed at the bank.
When you cash a cheque, it shows up as a deposit/ withdrawal on your statement.
When you apply for welfare, they want to know your income for the past three months. I gave them the info about the jobs, but I did not mention the money from the clinical trials, a total of maybe two or three thousand dollars over the last few months.
I also recently closed the bank account where I had cashed those cheques in favour of my no-fee online bank account. I did disclose the account's former existence ( even if I had not, they had it on file from when I was on welly a few years ago).
This is what I need to know: Does it matter that I didn't mention that money? It's not from a job, so it doesn't count, right? But if it does theoretically matter, will they even find out? The account's closed, I don't know if they can or will review it. Finally, if this is a problem, what should I do about it? Everything I told them about my current financial status is totally correct, this is just information about the past. So should I bother changing my information or will that just get me in trouble?
By the way, I know you are not my lawyer. If I could afford a lawyer I wouldn't be in this damn mess.
Throwaway email is haveicommittedfraud at gmail
I haven't been able to find a job and I am concerned about paying my rent, so I applied for social assistance. I have been doing clinical trials and the occasional temporary job for money. Both pay cheques, which I've cashed at the bank.
When you cash a cheque, it shows up as a deposit/ withdrawal on your statement.
When you apply for welfare, they want to know your income for the past three months. I gave them the info about the jobs, but I did not mention the money from the clinical trials, a total of maybe two or three thousand dollars over the last few months.
I also recently closed the bank account where I had cashed those cheques in favour of my no-fee online bank account. I did disclose the account's former existence ( even if I had not, they had it on file from when I was on welly a few years ago).
This is what I need to know: Does it matter that I didn't mention that money? It's not from a job, so it doesn't count, right? But if it does theoretically matter, will they even find out? The account's closed, I don't know if they can or will review it. Finally, if this is a problem, what should I do about it? Everything I told them about my current financial status is totally correct, this is just information about the past. So should I bother changing my information or will that just get me in trouble?
By the way, I know you are not my lawyer. If I could afford a lawyer I wouldn't be in this damn mess.
Throwaway email is haveicommittedfraud at gmail
It's not from a job, so it doesn't count, right?
Of course it does. It was income. I think you know that.
posted by ThatCanadianGirl at 8:57 AM on July 19, 2012 [4 favorites]
Of course it does. It was income. I think you know that.
posted by ThatCanadianGirl at 8:57 AM on July 19, 2012 [4 favorites]
Before you make any kind of decision about what you're going to do, simply give the financial assistance agency for your province a call. Ask them (anonymously) whether money received for clinical trials is considered income. It's just a question; they don't need to know who you are and why you're asking.
You could call Revenue Canada and ask the same - although I find them hopelessly clueless when it comes to any kind of 'difference circumstance' question. Prepare for a long call and for being bounced around from person to person.
posted by kitcat at 9:03 AM on July 19, 2012
You could call Revenue Canada and ask the same - although I find them hopelessly clueless when it comes to any kind of 'difference circumstance' question. Prepare for a long call and for being bounced around from person to person.
posted by kitcat at 9:03 AM on July 19, 2012
Do you get a T4 or any other type of tax slip for the money from the clinical trials? Also, why not just ask (again, anonymously) whether social assistance has the right to investigate a person's bank accounts?
posted by kitcat at 9:06 AM on July 19, 2012
posted by kitcat at 9:06 AM on July 19, 2012
Kitcat is definitely on the ball here. The absolute best way to find out is to contact the financial assistance people. Another good option for answers is to look for a community legal clinic in your area.* If you're in Ontario, you can use this list; I'm sure the same exists for other provinces.
My hunch (I'm not sure, this is not legal advice) is that you ought to have reported it, and it's very likely that the CRA can review it. If you're worried that they'll find out, your best bet is definitely to report - self-disclosure, as saucysault said, is the best way of them finding out.
If you could email the mods and let us know your province, we might be able to point you to some more helpful resources.
*I'm starting work at such a clinic in August; I can guarantee you that the people there (and presumably whichever clinic you're near) will do all they can to help you sort through it.
posted by Lemurrhea at 9:50 AM on July 19, 2012 [1 favorite]
My hunch (I'm not sure, this is not legal advice) is that you ought to have reported it, and it's very likely that the CRA can review it. If you're worried that they'll find out, your best bet is definitely to report - self-disclosure, as saucysault said, is the best way of them finding out.
If you could email the mods and let us know your province, we might be able to point you to some more helpful resources.
*I'm starting work at such a clinic in August; I can guarantee you that the people there (and presumably whichever clinic you're near) will do all they can to help you sort through it.
posted by Lemurrhea at 9:50 AM on July 19, 2012 [1 favorite]
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The sum of money you are talking about is very small, it is in the past and it is not on-going income. I would come clean personally, the ramifications of being found out are not fun and not worth it for a few thousand dollars that will probably not affect the amount of money you are eligible for. It is clearly an honest mistake, something you didn't think of as "income" and self-disclosure is much better than them finding out from a third party. This really is not worth the stress it is causing you.
The CRA has a pretty remarkable depth of information about you, they will be cross-checking that money the companies report paying you is actually declared by you. That information may be shared by the CRA and the social service agency you are dealing with. So if this doesn't catch you now, you may hear something next April. With all the other stress in your life you don't want to borrow trouble and have this hanging over your head for a year.
posted by saucysault at 8:36 AM on July 19, 2012 [2 favorites]