The Canada Revenue Agency began notifying Canadians of debts to their CRA accounts on May 10, 2022. In February, 2023, it began sending letters to people who had not made an effort to resolve their overpayment.The Canadian Revenue Agency announced Thursday that it will begin sending warnings in July that could lead to legal action against people with outstanding COVID-19 benefit overpayments who have been unresponsive or unco-operative so far, yet who have the means to pay.
Mr. Kirshen said he’s surprised to see the CRA take this bold step, and he’s worried that the sheer number of people the agency will deal with on this matter could leave those who are most vulnerable inadvertently at risk of facing punishment. Elizabeth Mulholland, chief executive of Prosper Canada, a national anti-poverty charity, said she’s not surprised that the CRA is turning to legal action to deal with unpaid taxes, and she’s glad to see emphasis on only reaching out to people who have the financial capacity to pay. However, she said she’s worried that what’s good in theory may get lost during implementation.
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