The Canada Games Aquatic Centre has to pay back the money it received from a federal wage subsidy program.
In 2020, the federal government launched the Canada Emergency Wage Subsidy (CEWS) program.
The purpose of the program was to provide financial assistance to eligible businesses that have seen a decline in revenue to offset the costs of employee wages.
The Canada Games Aquatic Centre in Saint John applied for funds and received them.
However, on March 3, 2022, the centre received notices of determination from the Canada Revenue Agency (CRA) that approximately $350,000 had to be repaid.
“At this point, we have the notice of determination, it indicates $350,000, so that represents the $325,000 that was actually paid out in wage subsidy claims, plus an attentional $25,000 that would be interest that accrued,” Amy McLennan, general manager of the Aquatic Centre, said in an interview.
Under CEWS, charitable organizations were eligible, which is what the centre applied under, but government-owned entities were not.
However, as part of the federal government’s stimulus program, verification vetting only happened after funds were distributed.
“Upon review of the CRA notices the CGACC determined there is a low likelihood appealing would be successful and a high risk of incurring further interest charges if the amounts are not repaid,” reads a staff report from the City of Saint John.
The Aquatic Centre plans to make a request to the CRA to waive the interest.
MacLennan will be making a request to present to the Regional Facilities Commission, as well as the towns of Rothesay, Quispamsis and Grand Bay-Westfield, to contribute their proportional share of the liability.
