Ottawa is still awaiting repayment of $5.56 billion in outstanding debt linked to COVID-19 benefits distributed to individuals later found to be ineligible, as per data from the Canada Revenue Agency shared with CBC News. The most recent data, as of July 31, shows that the total debt has been reduced by almost half since last November when the CRA had reported being owed over $10 billion.
The agency initially disbursed around $14 billion in COVID-related benefits to individuals deemed ineligible due to not meeting income criteria. Majority of this amount was allocated under the Canada Emergency Response Benefit (CERB) and the similar Canada Recovery Benefit (CRB) schemes.
CERB was active from March to October 2020, requiring applicants to have earned a minimum of $5,000 in income over the past year, experienced income loss due to the pandemic, and not received employment insurance to qualify. Recipients received $2,000 every four weeks.
In 2022, the CRA began notifying ineligible recipients of the need to repay. So far, approximately $3.671 billion in COVID-19 individual benefit debt has been repaid since collections commenced.
As of July 31, the CRA is still awaiting $2.91 billion in CERB repayments and $1.81 billion in CRB repayments. Previous data shared with CBC News indicated outstanding amounts of $5.41 billion for CERB and $3.2 billion for CRB as of November 30, 2025.
The CRA explains that the reduction in outstanding debt is not solely due to repayments but also influenced by various factors such as changes in eligibility criteria and write-offs for amounts deemed uncollectible. The agency can recommend a debt for write-off to Employment and Social Development Canada (ESDC) if the individual is facing irreversible financial hardships.
While some debts may be deemed uncollectible for accounting purposes, the CRA asserts that the debt remains valid, and the government retains the right to reclaim the amount in the future. Legal action may be taken against taxpayers who fail to settle their debts despite having the means to do so.
To assist debtors in settling their obligations, the CRA is implementing a flexible collection approach to encourage voluntary payments. This includes offering diverse repayment methods and extending timelines for repayment. The government also allows for interest-free repayment plans over time.
The CRA emphasizes its commitment to helping affected individuals resolve any outstanding issues and states that its agents will work with individuals on a case-by-case basis to establish suitable payment arrangements based on their financial capabilities.
