Taxpayers’ ombudsman Francois Boileau says Canada Revenue Agency Canadians applying for benefits should be warned about the risk of potential clawbacks for other income supports.
In its latest annual report, Boileau recommended that the CRA make it clear to applicants that benefits that increase their income may affect other benefits they receive, including provincial benefits.
Boileau said during a news conference on Tuesday that the recommendation was inspired by the experience of some seniors during the pandemic who saw their guaranteed income supplements cut because they accepted COVID-19 benefits.
“We thought it might happen again in the future,” Boileau said.
The federal government issued a one-time payment in April to compensate seniors affected by such clawbacks.
Boileau’s report provided other recommendations for the CRA to improve its service delivery and highlighted that 40 percent of the inquiries his office received last year were related to COVID-19 benefits.
The ombudsperson also raised concerns about vulnerable individuals not filing their taxes and therefore being denied benefits.
Boileau said he would provide recommendations to address this in the future.
Their report notes that while the CRA has publicly reported that 93.5 per cent of Canadians participate in the Canadian tax system, academics estimate the proportion to be slightly lower.
“We’re still trying to fully understand the problem and propose really concrete solutions, so no recommendations have been made this year. But you can bet there will be at another point,” Boileau said. Told.