Ottawa still has a remaining debt of $5.56 billion from COVID-19 benefits distributed to individuals who were later found to be ineligible, as per data shared by the Canada Revenue Agency with CBC News. The latest data as of July 31 shows a significant decrease from the previous figure reported in November, where the CRA stated it was owed over $10 billion.
The CRA initially disbursed around $14 billion in COVID-related benefits to individuals who did not meet the income criteria, mainly through programs like the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB).
CERB was active from March to October 2020 and required applicants to have earned a minimum of $5,000 in the past year, experienced income loss due to the pandemic, and not been receiving employment insurance. Recipients received $2,000 every four weeks.
Beginning in 2022, the CRA began notifying ineligible individuals about the need to repay the benefits. To date, approximately $3.671 billion in COVID-19 individual benefit debt has been returned.
As of July 31, the CRA is awaiting repayment of $2.91 billion for CERB payments and $1.81 billion for CRB. Previous data indicated outstanding amounts of $5.41 billion for CERB and $3.2 billion for CRB as of November 30, 2025.
The CRA clarified that debt reduction is not solely due to repayments but also influenced by various factors such as eligibility changes and writeoffs for uncollectable amounts. If an individual faces permanent financial hardship, the CRA can propose a debt writeoff to Employment and Social Development Canada.
Despite fluctuations in the receivable balance, the CRA emphasized that the debt remains valid and recoverable in the future. Legal action may be taken against taxpayers who fail to settle their debts, even if they have the means to do so.
To facilitate repayments, the CRA is implementing a flexible collection approach to encourage voluntary payments, offering interest-free repayment plans tailored to individuals’ financial capabilities. The agency aims to assist affected individuals in resolving outstanding debts on a case-by-case basis.