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Ottawa Backs Down on Digital Tax Dispute Amid Pressure from Trump White House

Canada has reportedly agreed to delay its planned digital services tax (DST) following pressure from former U.S. President Donald Trump’s administration, according to a recent statement from the White House. The tax, which was originally slated to target tech giants like Amazon, Meta, and Google, had been a major sticking point in U.S.-Canada trade discussions. The White House claimed Canada “caved” to U.S. demands after months of negotiations, with Trump’s team arguing the tax unfairly targeted American firms. The Canadian government, however, framed the delay as a strategic move to preserve economic stability and avoid retaliatory tariffs. Critics within Canada argue that the government’s decision reflects a growing trend of yielding to U.S. economic influence, while others say the delay is pragmatic given ongoing global talks about a coordinated approach to taxing digital revenues. The issue remains contentious, and observers are watching closely to see whether Canada will revive th...
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CRA Ramps Up Legal Action to Recover COVID Benefit Overpayments

 

The Canada Revenue Agency (CRA) is intensifying its efforts to reclaim overpayments related to pandemic benefits. With more than $9 billion still owed, the agency is taking decisive steps to recoup funds from ineligible recipients.

Starting this July, the CRA will issue legal warnings and employ various means to recover overpayments. These actions may include garnishing wages or withdrawing funds directly from bank accounts. However, the agency emphasizes that it will only pursue legal action against individuals who haven’t responded or cooperated and have the financial capacity to repay.

“Our primary goal is to encourage individuals to contact us so we can work together to find the best way to resolve their debt, ensuring a fair and manageable process for everyone,” says CRA spokeswoman Sylvie Branch.

The CRA remains committed to supporting Canadians who genuinely cannot repay their debt. If you’re facing financial challenges, reach out to the agency to explore repayment options.

Overpayment Breakdown

The CRA is currently seeking approximately $9.53 billion in repayments from ineligible recipients. Here’s the breakdown:

  • Canada Emergency Response Benefit (CERB): $5.41 billion
  • Canada Recovery Benefit (CRB): $2.67 billion
  • Canada Recovery Caregiving Benefit: $1.25 billion

Efforts to recover overpayments began in May 2022, with letters encouraging voluntary payments. Last year, the CRA escalated its collection efforts, including phone outreach and automatic offsetting of tax refunds and benefits against outstanding debts.

While recipients can request reviews of eligibility conclusions, the CRA’s information typically leaves little room for debate. Most issues are clear-cut.

Remember, if you’ve received pandemic-related benefits and suspect an overpayment, it’s essential to engage with the CRA promptly to find a resolution.



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