Regina 
Did you not receive an expected benefit payment or tax refund from the federal government? It might be because the Canada Revenue Agency (CRA) has resumed taxpayer debt recovery the agency paused during COVID-19.
CRA, through a news release today, reminded Canadians that it has begun the offsetting activities to recover outstanding taxpayer debt since October 2022.
According to CRA, offsetting involves using tax refunds and benefit payments to pay off tax and other government debts.
The CRA temporarily paused most offset mechanisms in May 2020 to support taxpayers during the pandemic. However, it resumed offsetting personal income tax refunds to recover outstanding debt from COVID-19 benefits, following the recommendations made by the Auditor General of Canada in December 2022.
CRA says unlike other benefits, the Canada child benefit payment can only be used to offset a CCB debt. Other types of child benefit payments can only be used to offset a debt related to the same benefit.
CRA says offsets may impact some individuals who have already established a payment plan with them.
CRA is encouraging individuals and families who are still experiencing financial difficulties to contact the agency immediately to discuss their options.
To avoid incurring a debt in the future, taxpayers are advised to inform the CRA as soon as possible when their situation changes, as they may no longer be eligible for certain benefits or credits.
