CCB Dispute with Canada Revenue Agency
I originally applied for and received the Canada Child Benefit (CCB) for my son. I was the parent who had been receiving the CCB.
My ex-partner subsequently made a claim for the CCB for the period December 2019 through October 2022, representing to CRA that I was not the eligible parent and that he was.
CRA accepted his claim and issued him a retroactive lump-sum CCB payment for that historical period.
As a result of my ex-partner's claim, CRA subsequently determined that the CCB I had originally received was an overpayment and established a debt against me of approximately $22,000.
I disputed CRA's determination and spent approximately a year and a half gathering documentation and evidence establishing that I was actually the eligible parent during the relevant period.
CRA subsequently reviewed my evidence and reversed its original determination. CRA has now accepted that I was the eligible individual for the CCB during the relevant period.
That determination initially resulted in approximately $10,000 being removed from the amount CRA said I owed, reducing the alleged debt from approximately $22,000 to $12,000.
However, CRA is now taking the position that it can not remove the remaining approximately $12,000 because the period is “statute-barred” under the three-year reassessment limitation period.
The result is that CRA has apparently accepted that I was the eligible parent and that my ex-partner was not, but I am still being left with approximately $12,000 owing as a consequence of the original incorrect allocation of the CCB.
This is creating ongoing financial consequences for me.
I have outstanding tax returns that I have been reluctant to file because I understand CRA may apply any resulting refunds against the disputed $12,000 debt.
I also have a newborn daughter and am concerned that any CCB to which I am currently entitled for her could be applied against this disputed historical balance.
Therefore, I am effectively being prevented from accessing money and benefits that I believe I am legitimately entitled to because of a debt that arose from my ex-partner's historical claim and that CRA has subsequently acknowledged was based on an incorrect eligibility determination.
I am currently working with my Member of Parliament's office, whose staff have been communicating with CRA on my behalf. I have not yet received the actual written CRA decision explaining the statute-barred position.
CRA originally said I owed approximately $22,000.
After reviewing my evidence, CRA reduced that amount to approximately $12,000.
What statutory authority allowed CRA to make that $10,000 correction, and why does that same authority supposedly prevent CRA from making the remaining correction after determining that I was the solely eligible parent?
Does subsection 152(4.2) apply?
CRA's own published guidance discusses the ability to make certain reassessments/redeterminations beyond the normal three-year period.
Once I receive CRA's written decision:
Is the appropriate remedy a Notice of Objection, a request under subsection 152(4.2), taxpayer relief, or another mechanism?