According to information provided by the Canada Revenue Agency to CBC News, Ottawa is still owed $5.56 billion in unpaid debt stemming from COVID-19 benefits that were issued to individuals later identified as ineligible.
The latest figure, as of July 31, shows that the total debt has decreased by nearly 50% since last November, when the CRA reported they were owed over $10 billion.
The CRA indicates that it initially distributed around $14 billion in COVID-related benefits to individuals whom the agency claims did not meet the income eligibility criteria.
The majority of this amount was disbursed through the Canada Emergency Response Benefit (CERB) and the similar Canada Recovery Benefit (CRB) program.
CERB was available from March to October 2020. To qualify, applicants needed to have earned a minimum of $5,000 in income over the previous year, have lost income due to the pandemic, and not be receiving employment insurance. Eligible recipients received $2,000 every four weeks.
In 2022, the CRA began notifying ineligible recipients about the requirement to repay the funds. The agency reports that since the initiation of collections, around $3.671 billion in COVID-19 individual benefit debt has been recovered.
As of July 31, the CRA stated it is still owed $2.91 billion from CERB payments and $1.81 billion from CRB payments. Older data provided to CBC News indicated that as of November 30, 2025, the agency was owed $5.41 billion pertaining to CERB and $3.2 billion regarding CRB.
How is the outstanding debt reduced?
The CRA explained that repayments constitute only a part of the overall debt reduction. The agency noted that the outstanding balance can change over time due to various factors, including shifts in eligibility criteria and the write-off of amounts considered uncollectable.
As stated by Employment and Social Development Canada (ESDC), the CRA can recommend to ESDC that a debt be written off if the individual is facing what is viewed as permanent financial hardship.
The CRA commented, “Changes in the total receivable balance should not be seen solely as repayments or write-offs. While certain debts may be categorized as uncollectable for accounting reasons, the debt itself is not erased.”
The agency emphasized that “the Crown retains the right to recover the amount owed in the future.”
If the CRA concludes that a taxpayer’s debt remains unpaid despite having the means to settle it, they may pursue legal action.
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The CRA stated, “We take decisive and responsible actions against individuals who attempt to evade payment of outstanding debts.”
In an effort to assist debtors in settling their obligations, the CRA is implementing a “flexible collection approach to promote voluntary payments.” This includes expanding the methods available for debt repayment and offering extended timelines.
The government permits interest-free repayment options over time.
“If individuals encounter challenges in settling their debts, we will strive to create suitable payment plans based on their financial capabilities,” the CRA noted.
“We aim to assist affected individuals in resolving their issues, and our agents will collaborate with them on an individual basis.”
