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PACP Committee News Release

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Standing Committee on Public Accounts
House of Commons / Chambre des communes
Comité permanent des comptes publics

For immediate release


NEWS RELEASE


The Federal Government’s Post-Payment Verification Work of COVID-19 Benefit Programs is Falling Short – Billions of Tax Dollars Remain Outstanding

Ottawa, December 12, 2023 -

PARLIAMENT HILL – The Auditor General of Canada found in a 2022 performance audit that COVID 19 benefit programs offered quick financial relief to individuals and employers, which prevented an increase in poverty and helped the economy bounce back from the effects of the pandemic. Yet, the federal government’s decision to rely on unchecked attestations and limited pre‑payment controls resulted in $4.6 billion of benefit overpayments to ineligible individuals. At least $27.4 billion of additional payments were also made to individuals and employers that should be investigated further by the Government of Canada to verify eligibility.

The Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) did not manage the selected COVID 19 benefit programs efficiently given the significant amount paid to ineligible recipients, the limited adjustments as programs were extended, and the slow progress on post payment verifications.

The CRA and ESDC are not performing a sufficient number of post payment verifications to be able to identify payments made to ineligible recipients. While, the department and agency had recouped approximately $2.3 billion in repayments, collection activities have only just begun and much work remains once post payment verifications are completed. The actions taken by the department and the agency to identify and recover overpayments or payments made to ineligible recipients have not been timely. Significant unrecoverable amounts of tax dollars are likely to materialize.

A report by the House of Commons Standing Committee on Public Accounts, presented today by Committee Chairman John Williamson, makes six recommendations to ensure that the Auditor General’s recommendations are adequately addressed, and that the CRA and ESDC provide evidence of this to the Committee through progress reports. In addition, three dissenting reports were also tabled by committee members.

For more information or a copy of the report, please contact:
Cédric Taquet, Clerk of the Standing Committee on Public Accounts
Tel: 613-996-1664
E-mail: PACP@parl.gc.ca