CRA Explains Benefit And Credit Issuance Procedures

by Mike Godfrey, for LawAndTax-News.com, Washington

24 April 2009

The Canada Revenue Agency (CRA) has announced that it is working to ensure that benefit payments are issued to only those eligible to receive them and that they are in the correct amounts.

The CRA explained that its validation process includes reviews to ensure eligible individuals are issued the benefits they are entitled to receive.

In 2007-2008, more than 253,000 benefit accounts were reviewed and 65% were adjusted. Adjustments uncovered almost CAD195m (USD157m) in benefit and credit overpayments.

Validation-related adjustments were also made for individuals and families who were not being issued the full amount of benefits they were entitled to receive. In 2007-2008, adjustments favouring benefit recipients amounted to CAD81m (USD146m).

The CRA states:

"During a review, the CRA may ask recipients to validate factors that affect both their eligibility to receive benefits and their benefit amount. In some situations, not providing the requested information will cause the CRA to interrupt, recalculate, or stop benefit payments."

"Recipients and their spouses or common-law partners must each file a tax return every year, even if they have no income to report."

According to the CRA, benefit recipients should contact them if:

• they move, even if their payments are direct deposited;
• their marital status changes;
• their residency/citizenship status changes; or
• the child on whose behalf they received benefits is no longer in their care.

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