CRA reports $5.56 billion still owed from ineligible COVID-19 benefits

The Canada Revenue Agency disclosed that the federal government is still owed $5.56 billion for pandemic benefits later deemed ineligible, a sharp decline from the more than $10 billion reported last November. The agency had initially paid out about $14 billion through the Canada Emergency Response Benefit and the Canada Recovery Benefit, programs that required a minimum $5,000 income and loss of earnings due to COVID-19.

Beginning in 2022, the CRA started notifying recipients of repayment obligations, and to date $3.671 billion has been returned. One outlet shortfall of $2.91 billion for CERB and $1.81 billion for CRB reflects not only repayments but also changes in eligibility and write-offs for amounts considered uncollectable. The CRA emphasized that write-offs do not cancel the debt and that the Crown retains the right to pursue collection, including legal action if necessary. To aid debtors, the agency is offering flexible repayment options and interest-free plans tailored to individual ability to pay.