The Canada Revenue Agency (CRA) is currently in the process of clawing back income tax refunds from individuals who claimed the Canadian Emergency Response Benefit (CERB) during the COVID-19 pandemic. While the government has the right to do so, there are concerns that they are not going after big corporations first.
The government mishandled overpayments, and unfortunately, some people took advantage of the situation and gamed the system. However, there have been legitimate errors in too many cases where the CRA is clawing back money from Canadians requiring the funds.
Today, the Taxpayers’ Ombudsperson, François Boileau, has announced his intention to closely monitor complaints received at his office concerning individuals who have already paid back COVID-related benefit overpayments to the Government of Canada yet are still receiving collection letters from the CRA.
It is possible that these individuals have already made a payment to another department, such as Employment and Social Development Canada, and the CRA is unaware of it. If these complaints are not isolated, the Office of the Taxpayers’ Ombudsperson could launch a systemic investigation to shed light on these issues.
The Ombudsperson’s office will continue to examine individual complaints received and invites anyone facing such a situation to contact his office. However, the recent labour disruptions may cause delays in processing complaints.
The Ombudsperson reminds individuals that if their financial situation is urgent and they are experiencing delays in getting their tax refund or other benefits, they should not hesitate to call his office or file a complaint electronically. Mr. Boileau expects that, despite the recent labour disruptions, the CRA will give these complaints priority.
It is important to note that the Office of the Taxpayers’ Ombudsperson works independently from the CRA, and Canadians can submit complaints to the Office if they feel they are not receiving the appropriate service from the CRA. The main objective of the office is to improve the service the CRA provides to taxpayers and benefit recipients by reviewing individual service complaints and service issues that affect more than one person or a segment of the population.
The Taxpayers’ Ombudsperson assists, advises and informs the Minister of National Revenue about matters relating to services provided by the CRA. The Ombudsperson ensures that the CRA respects eight service rights outlined in the Taxpayer Bill of Rights.
Boileau has made it clear that if there is a systemic issue, they will not hesitate to examine it. It is unfair for individuals to pay for an administrative mess between two federal departments. The government should prioritize going after big corporations before targeting individuals who genuinely require the funds during the pandemic.
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