Employment Insurance Regulations

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 Employment and Social Development does not exceed $100, 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;

• (b) the debtor is deceased;

• (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,

  • (ii) the repayment of the penalty or amount, or the interest accrued on it, would result in undue hardship to the debtor, or

  • (iii) the administrative costs of collecting the penalty or amount, or the interest accrued on it, would likely equal or exceed the penalty, amount or interest to be collected.

(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

• (b) the overpayment arises as a result of

  • (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.