According to information provided by the Canada Revenue Agency to CBC News, Ottawa is still owed $5.56 billion in outstanding debt due to COVID-19 benefits that were issued to individuals who later turned out to be ineligible.
The updated amount, as of July 31, shows that the overall debt has nearly been cut in half since last November, when the CRA indicated it was owed more than $10 billion.
The CRA indicated that it initially disbursed around $14 billion in COVID-related benefits to individuals that the agency claims did not qualify due to not meeting income thresholds.
The majority of these funds were distributed through the Canada Emergency Response Benefit (CERB) and the comparable Canada Recovery Benefit (CRB) program.
The CERB program was available from March to October 2020. To qualify, applicants needed to have earned at least $5,000 in the previous 12 months, experienced income loss due to the pandemic, and not have been receiving employment insurance. Eligible individuals received $2,000 every four weeks.
<pIn 2022, the CRA began notifying ineligible recipients that repayment was required. Since the start of collections, the CRA reports that roughly $3.671 billion in COVID-19 individual benefit debt has been repaid.
<pAs of July 31, the CRA states it is still owed $2.91 billion from CERB payments and $1.81 billion from CRB payments. Older data shared with CBC News indicated that as of November 30, 2025, it was owed $5.41 billion on CERB and $3.2 billion on CRB.
What led to the reduction in outstanding debt?
According to the CRA, repayments represent only a portion of the debt reduction. The agency explains that the total amount owed can vary due to several factors, including changes in eligibility criteria and the write-off of amounts it considers uncollectible.
The CRA can suggest a debt for write-off to Employment and Social Development Canada (ESDC) if the individual is facing what is deemed permanent financial difficulty.
The CRA stated, “Changes in the total receivable balance should not be viewed solely as repayments or write-offs. While certain debts may be classified as uncollectible for accounting reasons, the actual debt is not erased.”
It emphasized that “the Crown retains the right to recover the amount owed in the future.”
If the CRA finds that a taxpayer’s debt remains unpaid despite their ability to pay it in full, legal action may be pursued.
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The CRA asserted, “We take strong and responsible measures against those attempting to evade payment of outstanding debts.”
To assist debtors in settling their obligations, the CRA is implementing a “flexible collection approach to promote voluntary payments.” This includes expanding the options for repayment and offering extended timelines.
The government permits interest-free repayment plans over a period of time.
“If individuals are struggling to pay their debt, we will strive to create suitable payment arrangements based on their ability to pay,” the CRA stated.
“We aim to assist affected individuals in resolving their issues, and our agents will collaborate with them on an individual basis.”