Ottawa: The Canada Revenue Agency (CRA) is intensifying efforts to recover overpayments made through pandemic-related benefits, targeting individuals deemed capable of repaying but who have not yet done so. Starting in July, the CRA will issue legal warnings to those who have not cooperated despite having the financial means to repay. This marks a significant escalation in the agency’s approach to reclaiming funds distributed under programs like the Canada Emergency Response Benefit (CERB), Canada Recovery Benefit (CRB), and Canada Worker Lockdown Benefit.
Since the onset of these efforts in 2020, the CRA has already recovered approximately $1.8 billion in erroneous payments by contacting recipients to either substantiate their eligibility or return the funds. Those found ineligible were informed of their debt status, with follow-up letters dispatched to prompt repayment actions as of February 2023.
To supplement these efforts, the CRA has utilized measures such as withholding tax refunds and other benefits owed to ineligible recipients. For individuals willing to repay but facing financial constraints, the agency offers various repayment plans. Canadians disputing their eligibility have avenues for appeal, including two reviews of their case before recourse to legal action.
Despite cancelling $246 million in debts for ineligible recipients earlier this year and reversing debts for about 27,000 individuals upon eligibility verification, the CRA continues to pursue outstanding overpayments totaling $9.53 billion across multiple pandemic benefit programs.
The CRA emphasizes its commitment to supporting Canadians genuinely unable to repay their debts while holding accountable those capable of returning funds erroneously received.