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CRA Still Owed $5.56 Billion in Unpaid Pandemic Benefits to Ineligible Recipients
According to data provided by the Canada Revenue Agency (CRA) to CBC News, Ottawa is still owed $5.56 billion in outstanding debt related to COVID-19 benefits that were sent to individuals later deemed ineligible. This figure, dated July 31, 2026, represents a nearly 50% reduction from the $10 billion reported in November 2025. The CRA initially distributed approximately $14 billion in pandemic-related benefits, primarily through the Canada Emergency Response Benefit (CERB) and Canada Recovery Benefit (CRB) programs. CERB was available from March to October 2020, requiring applicants to have earned at least $5,000 in income over the previous year, lost income due to the pandemic, and not be receiving Employment Insurance. Recipients received $2,000 every four weeks. In 2022, the CRA began notifying ineligible recipients of repayment obligations. As of July 31, 2026, approximately $3.671 billion has been repaid, leaving $2.91 billion in CERB debt and $1.81 billion in CRB debt. The CRA notes that debt reduction is not solely due to repayments but also includes factors such as changes in eligibility and write-offs of uncollectable amounts. The agency can recommend debt write-offs to Employment and Social Development Canada (ESDC) for individuals facing permanent financial hardship, though the debt remains legally enforceable. The CRA emphasizes it retains the right to recover unpaid amounts in the future and may take legal action against those who refuse to pay despite having the ability to do so. To assist debtors, the CRA has adopted a flexible collection approach, offering interest-free repayment plans and extended timelines. "We want to help impacted individuals resolve any issues and our agents will work with them on a case-by-case basis," the agency stated. The CRA also warns that it takes "firm and responsible measures against those who seek to avoid paying outstanding amounts."