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Employment Insurance Regulations- Part I - Unemployment Benefits
Current EI (Main) Regulations
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PART I
UNEMPLOYMENT BENEFITS
Write-off of Amounts Wrongly Paid, penalties and interest.
56. (1) A penalty owing under section 38, 39 or 65.1 of the Act or an amount payable under section 43, 45, 46, 46.1 or 65 of the Act, or the interest accrued on the penalty or amount, may be written off by the Commission if
(a) the total of the penalties and amounts, including the interest accrued on those penalties and amounts, owing by the debtor to Her Majesty under any program administered by the Department of Human Resources Development does not exceed $20, a benefit period is not currently running in respect of the debtor and the debtor is not currently making regular payments on a repayment plan;
(c) the debtor is a discharged bankrupt;
(d) the debtor is an undischarged bankrupt in respect of whom the final dividend has been paid and the trustee has been discharged;
(e) the overpayment does not arise from an error made by the debtor or as a result of a false or misleading declaration or representation made by the debtor, whether the debtor knew it to be false or misleading or not, but arises from
(i) a retrospective decision or ruling made under Part IV of the Act, or
(ii) a retrospective decision made under Part I or IV of the Act in relation to benefits paid under section 25 of the Act; or
(f) the Commission considers that, having regard to all the circumstances,
(i) the penalty or amount, or the interest accrued on it, is uncollectable, or
(ii) the repayment of the penalty or amount, or the interest accrued on it, would result in undue hardship to the debtor.
(2) The portion of an amount owing under section 47 or 65 of the Act in respect of benefits received more than 12 months before the Commission notifies the debtor of the overpayment, including the interest accrued on it, may be written off by the Commission if
(a) the overpayment does not arise from an error made by the debtor or as a result of a false or misleading declaration or representation made by the debtor, whether the debtor knew it to be false or misleading or not; and
(i) a delay or error made by the Commission in processing a claim for benefits,
(ii) retrospective control procedures or a retrospective review initiated by the Commission,
(iii) an error made on the record of employment by the employer,
(iv) an incorrect calculation by the employer of the debtor's insurable earnings or hours of insurable employment, or
(v) an error in insuring the employment or other activity of the debtor.
Interest on Amounts Owing to Her Majesty
56.1 (1) The following definitions apply in this section.
"average bank rate" means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. (taux d'escompte moyen)
"bank rate" means the rate of interest established weekly by the Bank of Canada as the minimum rate at which the Bank of Canada makes short-term advances to members of the Canadian Payments Association. (taux d'escompte)
"debt arising from an act or omission" means an amount payable under section 43, 45, 46, 46.1 or 65 of the Act in respect of which a penalty was imposed under section 38, 39 or 65.1 of the Act or a warning was issued under section 41.1 of the Act or in respect of which a prosecution was undertaken under section 135 or 136 of the Act or under the Criminal Code, and includes an amount payable under section 38, 39 or 65.1 of the Act and an amount payable as a result of the judgment of a court. (dette résultant d'un acte délictueux)
(2) If an appeal in respect of a penalty imposed under section 38, 39 or 65.1 of the Act or of a warning issued under section 41.1 of the Act results in the rescinding of the penalty or warning or if a claimant is eventually acquitted in a prosecution under section 135 or 136 of the Act or under the Criminal Code, the debt that was the subject of the decision is not a debt arising from an act or omission.
(3) Interest accrues, at a rate that is calculated daily and compounded monthly at the average bank rate plus three per cent, on all debts arising from an act or omission and owing to Her Majesty under section 47 or 65.2 of the Act on or after the day this section comes into force.
(4) The accrual of interest on an amount owing to Her Majesty under section 47 or 65.2 of the Act, at the rate set out in subsection (3), begins on the day on which the debtor is notified of the amount owing.
(5) Subject to subsection (6), interest does not accrue on an amount owing to Her Majesty under section 47 or 65.2 of the Act during the period in which an appeal or other review of the decision that gave rise to the obligation to pay that amount is pending.
(6) An appeal or other review referred to in subsection (5) does not include the reconsideration of a decision by the Commission under section 41, 52 or 120 of the Act.
(7) The accrual of interest on an amount owing to Her Majesty under section 47 or 65.2 of the Act ceases on the day on which
(a) repayment of the amount owed to Her Majesty and any interest accrued on that amount is received by Her Majesty or a duly authorized agent of Her Majesty;
(8) The Commission may waive or reduce the amount of interest provided for in this section if
(a) the administrative costs of collecting the interest owing would exceed the amount of that interest;
(b) the interest is payable in respect of an amount in dispute where the dispute has been settled, in whole or in part, in favour of the debtor; or
(c) the accrual of interest on a particular penalty or amount owing would result in undue hardship to the debtor.
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