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(Photo: Courtesy of PSAC)

Legal action possible for not repaying COVID benefits

By Randy Thoms Jun 27, 2024 | 1:14 PM

People who have made no effort to repay their COVID benefits could face legal action from the Canada Revenue Agency.

The CRA says it will start issuing warnings in July to people who have failed to respond to previous deadlines or make contact with the agency on a repayment plan.

The agency says legal action may be taken to recover monies owed.

It emphasizes that action will only be taken against individuals determined to have the ability to pay.

Canadians were given until the middle of January to make repayment.

The CRA says it is still willing to work with anyone still owing money.

“We offer a number of options for you to make a payment even without having to contact us, such as online or through a financial institution. We encourage individuals to follow the directions they receive in any correspondence from the CRA without delay,” states a release.

The agency began efforts to collect back the benefits in May 2022 when it sent letters to recipients offering voluntary repayment.

Two weeks after the repayment deadline, the CRA started issuing collection letters to individuals who made no effort to resolve their overpayment.