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  • Retroactive Canada Child Benefit (CCB) Payment

    I just ran into some problems with CRA regarding the CCB payment. Here are some timeline facts:

    1. After a court battle, the Mother was granted sole custody of the child, with a two-year transition period to 50-50 shared custody, which started Jan-2016

    2. The mother had been receiving the Canada Child Benefit (CCB), and I assume that she didn’t notify the CRA about the custody change and continued to receive CCB until this day.

    3. I sent the CCB application in early 2022, because I realized that I was also entitled to half of CCB payment based on my Tax returns starting Jan 2016 when the child started living with my 50% of time (I admit that I was late in doing this)

    4. CRA asked for all the support documents (Court Judgment, School Letter / Report Card, Letters from Family Doctor / Dentist, showing two home addresses etc.)

    5. After I sent in all these papers, establishing that the Child indeed started to live with us 50-50, they just sent me a letter, stating that Retroactive payment is only for 3 years.

    6. I think I read on this Forum quite a while ago on a similar case where one parent was late in applying for CCB while the other parent was not being truthful with CRA, and in that case the retroactive period is 10 years.

    7. So I did some www search, and found this 2016 government Budget, which clearly indicates that the Retroactive is 10 years. (link below)

    8. I called CRA, they told me that they are aware of this 10 year rule. But there is another rule (I asked them to send me the link, but they say that they use it internally and can’t send me), which says if Retroactive payment on my side impacts another person for more than 3 years, it seemed that they can only go back 3 years.

    9. So this basically confirmed that the Mother failed to notify CRA of the custody change, and she received double CCB payment for which she was not entitled to, for more than six years.

    10. To me, this is not fair to me, is not fair to the Child, even is not fair to the government (since my CCB amount would be a lot less than the Mother over-received based on our incomes).

    I wonder if any other member on this Forum has faced similar situations with CRA on this CCB Retroactive payment? And how the settlements ended up?

    Thank you very much


    https://www.budget.gc.ca/2016/docs/tm-mf/si-rs-en.html

    Retroactive Payments


    Currently, an individual can apply to receive retroactive payments of the CCTB and UCCB as far back as when the programs were introduced, provided they would have been eligible to receive the benefits at the time.
    In contrast, a taxpayer who has not claimed, on a previous tax return, tax credits or benefits to which they would otherwise have been entitled (such as the goods and services tax credit, working income tax benefit or disability tax credit) may request a tax reassessment in respect of a taxation year up to 10 calendar years after the end of that taxation year, in order to receive retroactive payment of these amounts.
    To be consistent with the time limit on retroactive claims of other tax amounts, Budget 2016 proposes to allow a taxpayer to request a retroactive payment of the Canada Child Benefit, CCTB or UCCB in respect of a month on or before the day that is 10 years after the beginning of that month, effective for requests made after June 2016.

  • #2
    More than likely it could be three years as it would be a retroactive award against your ex who would then have to pay back that money to the government and they canít ďunfairlyĒ demand a hefty retroactive award. Not to mention that technically the child was receiving the money through one of their parents, it just wasnít you.

    Comment


    • #3
      Thank you Rockscan. If we read the link from 2016 Budget, which eventually merged the previous CCTB and Universal Child Care Benefit, there is a section that clearly stated that Retroactive Payment is for 10 years.

      If CRA only allows three years, I would be punished because the Mother may have Forgotten to file the changes on custody. Even CRA goes after the mother for the CCB since 2016, that's the money she was not lawfully entitled to anyway. If someone files false information on income tax, I heard that CRA can go back to 6 or 7 years, no??

      Comment


      • #4
        Originally posted by BCD123 View Post
        Thank you Rockscan. If we read the link from 2016 Budget, which eventually merged the previous CCTB and Universal Child Care Benefit, there is a section that clearly stated that Retroactive Payment is for 10 years.

        If CRA only allows three years, I would be punished because the Mother may have Forgotten to file the changes on custody. Even CRA goes after the mother for the CCB since 2016, that's the money she was not lawfully entitled to anyway. If someone files false information on income tax, I heard that CRA can go back to 6 or 7 years, no??
        The responsibility lies with both parents to make chang3s, not just the mother. If you had applied when you originally became eligible, they would have approached the mother to confirm the changed. She didn't voluntarily request to change it, but you also did not apply.

        Comment


        • #5
          Originally posted by blinkandimgone View Post
          The responsibility lies with both parents to make chang3s, not just the mother. If you had applied when you originally became eligible, they would have approached the mother to confirm the changed. She didn't voluntarily request to change it, but you also did not apply.

          This is true and what I was skirting around. Just because the website says a parent can go back ten years it refers to a child that has not had any benefits. Technically your child has had benefits they just went to the mother. You are not happy because the benefits went to her and not you. She isnít going to voluntarily change things and the government is not a party to your dispute. You should have been on it and you werenít. Thats not the governmentís fault. You want them to take responsibility for your mistake.

          Comment


          • #6
            I know this is not the case for us… but if a divorced a couple can ‘cooperate/collude’, the lower income parent can apply and receive the CCB for a higher amount, while the higher-income parent can simply be quiet and sit sideline? to cheat the ‘system’?

            Again, I heard that we need to keep our Tax records for 6 or 7 years because CRA can audit / review to collect retroactively. CRA letter mentioned that there is legislation on this, but when I asked them to show me, they only mentioned Income Tax Act (ITA) Section 152 3.2, which is not on CCB at all. They say there are CRA internal rules on this. When I asked them to send me the link or the Documents, the Agents told me that s/he cannot. Only sent me the general CCB application website. I find that’s weird. I’m not really counting on this CCB, just feel that since the only public legislation that we have access to is the 2016 Budget, where there is a clear stipulation regarding this 10 year retroactive payment, why it isn’t applied here.

            After I talked to a few CRA agents, they told me that they would raise this to their senior manager. One of them seemed to agree with me, and opened a review to file an objection. I’ll see how it goes.

            Just curious if any other member on this forum had any experience in dealing with CRA on this.

            Comment


            • #7
              I have only seen posters trying to get benefits due to the wording in their order being incorrect. You probably wonít get an answer because most of the people here have been on it right away.

              With that said, you still arenít getting it. You want CRA to fix a problem created by you several years ago.

              Originally posted by BCD123 View Post
              I know this is not the case for usÖ but if a divorced a couple can Ďcooperate/colludeí, the lower income parent can apply and receive the CCB for a higher amount, while the higher-income parent can simply be quiet and sit sideline? to cheat the Ďsystemí?
              How is it colluding? The money is for the child. If a couple works together to get more benefits for the child that is a good thing no? What if that couple did this but then split the money? Is that worse? The point of CCB is extra money for a child. Your posts continue to be on the theme of ďI was deniedĒ but this isnít about you. Itís about the child and as far as the govt is concerned the child DID get the benefits. They just didnít go through you.

              Again, I heard that we need to keep our Tax records for 6 or 7 years because CRA can audit / review to collect retroactively. CRA letter mentioned that there is legislation on this, but when I asked them to show me, they only mentioned Income Tax Act (ITA) Section 152 3.2, which is not on CCB at all. They say there are CRA internal rules on this. When I asked them to send me the link or the Documents, the Agents told me that s/he cannot. Only sent me the general CCB application website. I find thatís weird. Iím not really counting on this CCB, just feel that since the only public legislation that we have access to is the 2016 Budget, where there is a clear stipulation regarding this 10 year retroactive payment, why it isnít applied here.
              Irrelevant. Auditing taxes is not the same as eligibility for benefits. You canít apply one rule for another. Thatís like saying you have expenses to work for a company so you should be able to apply the ones self employed people do. Again, you are looking for loopholes to get what you want. Itís really obnoxious to make demands on a call centre person to give you what you want when you didnít claim it yourself.

              After I talked to a few CRA agents, they told me that they would raise this to their senior manager. One of them seemed to agree with me, and opened a review to file an objection. Iíll see how it goes.
              Which means your ex will have to repay thousands that were for your child only to have the government pay you less for that same child. Why not simply accept that those funds were paid to your childís parent and that child got more money due to the income of the parent claiming them.

              Let it go. Your posts simply scream petty and indignant that your ex got money and you didnít. You made a mistake not claiming it. That was neither your ex or the governmentís fault.


              Sent from my iPhone using Tapatalk

              Comment


              • #8
                Originally posted by BCD123 View Post
                I know this is not the case for us‚Ķ but if a divorced a couple can ‚Äėcooperate/collude‚Äô, the lower income parent can apply and receive the CCB for a higher amount, while the higher-income parent can simply be quiet and sit sideline? to cheat the ‚Äėsystem‚Äô?

                Again, I heard that we need to keep our Tax records for 6 or 7 years because CRA can audit / review to collect retroactively. CRA letter mentioned that there is legislation on this, but when I asked them to show me, they only mentioned Income Tax Act (ITA) Section 152 3.2, which is not on CCB at all. They say there are CRA internal rules on this. When I asked them to send me the link or the Documents, the Agents told me that s/he cannot. Only sent me the general CCB application website. I find that’s weird. I’m not really counting on this CCB, just feel that since the only public legislation that we have access to is the 2016 Budget, where there is a clear stipulation regarding this 10 year retroactive payment, why it isn’t applied here.

                After I talked to a few CRA agents, they told me that they would raise this to their senior manager. One of them seemed to agree with me, and opened a review to file an objection. I’ll see how it goes.

                Just curious if any other member on this forum had any experience in dealing with CRA on this.
                It's still tax fraud, even if both parents agree to let the lower income parent make the claim. You might get away with it for a while, or entirely, doesn't make it any less fraudulent.

                Comment

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