The Canada Revenue Agency (CRA) has revealed that false claims for pandemic benefits have cost taxpayers a staggering $7.96 billion, with only $1.93 billion recovered so far. Blacklock's Reporter says this staggering amount is 22% higher than initial estimates, and the Agency expects to spend an additional $707 million on auditing and recovery efforts by 2025.The CRA's report to the Commons public accounts committee detailed the scope of the problem, which includes $250 million in false claims made through the Department of Employment's Employment Insurance program. To date, only $133.9 million of these funds have been recovered.The Agency's estimates suggest that billions more will be spent on auditing and recovering fraudulent claims, with costs expected to exceed the value of ineligible benefits received by individuals by almost $3.2 billion. The CRA has expanded payment arrangements to allow individuals to repay debts over a longer period, taking into account their financial circumstances.“The Revenue Agency is sensitive to the hardship Canadians may still be facing as a result of the Covid-19 pandemic,” wrote the Agency. “Payment arrangements have been expanded to allow the repayment of debt over a longer period of time. This approach takes into account the individual financial circumstances of the person.”Auditor General Karen Hogan's 2022 report criticized the cursory checks made on applicants claiming benefits, leading to delayed post-payment verifications. The Agency was flooded with tips on suspected fraud, with over 60,000 leads processed in 2021, compared to the typical 30,000 annually.The Canada Emergency Response Benefits Act was passed in March 2020, with no upfront proof of eligibility required. The program's original budget of $24 billion ballooned to $81.6 billion, with billions more lost to fraud and errors. The CRA's efforts to recover these funds will continue until 2025, with the hope of recouping some of the losses.
The Canada Revenue Agency (CRA) has revealed that false claims for pandemic benefits have cost taxpayers a staggering $7.96 billion, with only $1.93 billion recovered so far. Blacklock's Reporter says this staggering amount is 22% higher than initial estimates, and the Agency expects to spend an additional $707 million on auditing and recovery efforts by 2025.The CRA's report to the Commons public accounts committee detailed the scope of the problem, which includes $250 million in false claims made through the Department of Employment's Employment Insurance program. To date, only $133.9 million of these funds have been recovered.The Agency's estimates suggest that billions more will be spent on auditing and recovering fraudulent claims, with costs expected to exceed the value of ineligible benefits received by individuals by almost $3.2 billion. The CRA has expanded payment arrangements to allow individuals to repay debts over a longer period, taking into account their financial circumstances.“The Revenue Agency is sensitive to the hardship Canadians may still be facing as a result of the Covid-19 pandemic,” wrote the Agency. “Payment arrangements have been expanded to allow the repayment of debt over a longer period of time. This approach takes into account the individual financial circumstances of the person.”Auditor General Karen Hogan's 2022 report criticized the cursory checks made on applicants claiming benefits, leading to delayed post-payment verifications. The Agency was flooded with tips on suspected fraud, with over 60,000 leads processed in 2021, compared to the typical 30,000 annually.The Canada Emergency Response Benefits Act was passed in March 2020, with no upfront proof of eligibility required. The program's original budget of $24 billion ballooned to $81.6 billion, with billions more lost to fraud and errors. The CRA's efforts to recover these funds will continue until 2025, with the hope of recouping some of the losses.
