CRA still owed over $5B in COVID-19 benefits sent to ineligible recipients
Pandemic benefit debt nearly halved since last November, CRA says
Ottawa is still owed $5.56 billion of outstanding debt related to COVID-19 benefits sent to those who were later deemed ineligible, according to data the Canada Revenue Agency provided to CBC News.
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Agency → owe → News
The updated figure dated July 31 indicates the total debt has been nearly halved from last November, by which point the CRA reported it was owed over $10 billion.
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it → update → billion
According to the CRA, the agency originally gave out about $14 billion in COVID-related benefits to individuals the agency says weren't eligible because they didn't meet the income requirements.
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they → accord → requirements
Most of that sum was provided under the Canada emergency response benefit (CERB) or the similar Canada recovery benefit (CRB) program.
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Most → provide → benefit
Applicants had to have earned at least $5,000 in income in the last 12 months, lost income as a result of the pandemic and not been receiving employment insurance in order to be eligible.
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Applicants → have → insurance
They received $2,000 every four weeks.
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They → receive → 2,000
In 2022, the CRA started informing ineligible recipients a repayment was due.
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repayment → start → recipients
The CRA says that since collections began, approximately $3.671 billion in COVID-19 individual benefit debt had been paid back.
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billion → say → debt
The CRA says it's still owed $2.91 billion on CERB payments and $1.81 billion on CRB, as of July 31.
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it → say → July
Older data the agency provided CBC News indicated it was owed $5.41 billion on CERB and $3.2 billion on CRB, as of Nov. 30, 2025.
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it → provide → Nov.
How is the outstanding debt reduced?
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debt → reduce → ?
Repayments only account for a portion of the debt reduction, according to the CRA.
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Repayments → account → CRA
It says the balance fluctuates over time due to multiple factors, which also include changes in eligibility and writeoffs of amounts it deems uncollectable.
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it → say → amounts
According to Employment and Social Development Canada (ESDC), the CRA can recommend a debt for a writeoff to ESDC if the individual in question is dealing with what it considers permanent financial hardship.
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it → accord → question
"Changes in the overall receivable balance should not be interpreted solely as debt repayments or writeoffs," the CRA said in a statement.
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CRA → interpret → statement
"While some debts may be deemed uncollectable for accounting purposes, the debt itself is not cancelled."
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debt → deem → purposes
It said "the Crown retains the right to recover the amount owing in the future."
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Crown → say → future
The agency said if it determines a taxpayer's debt remains unpaid even if they have the ability to pay it in full, the CRA may take legal action.
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CRA → say → action
COVID-19 benefit repayment is hurting low-income Canadians, report says
Canadian citizenship certificate applications now facing nearly 3-year delays
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applications → hurt → delays
"The CRA takes firm and responsible measures against those who seek to avoid paying outstanding amounts," it said.
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it → take → amounts
To help debtors settle what they owe, the CRA says it's adopting a "flexible collection approach to encourage voluntary payments."
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it → help → payments
That includes, for example, broadening the range of ways people can repay their debts and allowing them extended timelines to do so.
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people → include → timelines
The government allows for interest-free repayment over time.
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government → allow → time
If individuals are having difficulty paying their debt, we will make every effort to establish appropriate payment arrangements based on individuals' ability to pay," the CRA said.
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CRA → have → ability
"We want to help impacted individuals resolve any issues and our agents will work with them on a case-by-case basis."
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agents → want → basis
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