CRA still owed over $5B in COVID-19 benefits sent to ineligible recipients
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.
Pandemic benefit debt nearly halved since last November, CRA says
David Cummings · CBC News
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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.
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.
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.
Most of that sum was provided under the Canada emergency response benefit (CERB) or the similar Canada recovery benefit (CRB) program.
CERB was in place from March to October 2020. 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. They received $2,000 every four weeks.
In 2022, the CRA started informing ineligible recipients a repayment was due. The CRA says that since collections began, approximately $3.671 billion in COVID-19 individual benefit debt had been paid back.
The CRA says it's still owed $2.91 billion on CERB payments and $1.81 billion on CRB, as of July 31. 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.
How is the outstanding debt reduced?
Repayments only account for a portion of the debt reduction, according to the 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.
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.
"Changes in the overall receivable balance should not be interpreted solely as debt repayments or writeoffs," the CRA said in a statement. "While some debts may be deemed uncollectable for accounting purposes, the debt itself is not cancelled."
It said "the Crown retains the right to recover the amount owing in the 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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"The CRA takes firm and responsible measures against those who seek to avoid paying outstanding amounts," it said.
To help debtors settle what they owe, the CRA says it's adopting a "flexible collection approach to encourage voluntary payments." That includes, for example, broadening the range of ways people can repay their debts and allowing them extended timelines to do so.
The government allows for interest-free repayment over 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.
"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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