Ombudsman criticizes CRA for cutting benefits to foreigners

Taxpayers Ombudsman François Boileau has criticized the Canada Revenue Agency (CRA) for halting benefit payments to foreigners whose immigration status has expired, arguing the policy causes hardship for those still in the country.

Blacklock's Reporter says Boileau acknowledged that the CRA is technically following the law but suggested it should do more to notify temporary residents before their benefits are cut off.

In his report Timing Is Everything, he cited complaints from individuals who claimed to have "lost faith in our system" and were owed months of unpaid benefits.

His office did not respond to questions.

Under the Immigration And Refugee Protection Act, temporary residents — including refugee claimants, migrant workers, and international students — are eligible for the Canada Child Benefit. The program provides tax-free payments of up to $7,787 per year for low-income families, with adjustments based on household earnings and the age of children.

The CRA automatically stops payments when a foreigner’s permit expires unless the recipient provides proof that they have applied for an extension. The report noted that this process can leave eligible residents without benefits for months as they wait for retroactive payments.

“The Agency will not pay out benefits unless the taxpayer provides proof they still have legal status,” Boileau wrote.

He recommended that the CRA send reminders to temporary residents before their permits expire to prevent unnecessary interruptions.

According to the report, 53,770 temporary residents received Canada Child Benefit payments, though the total amount disbursed was not disclosed.

Efforts to limit benefits for refugee claimants have failed in the past. In 2012, a federal judge struck down a policy that restricted access to free prescription drugs and dental care for refugee claimants, calling it "cruel and unusual."

A 2014 Conservative private member’s bill, C-585, aimed at limiting welfare payments to refugee claimants, also failed to pass before Parliament dissolved in 2015.