Home Tax News Technical glitch delays GST rebate and other tax credits to some lower-income Canadians

Technical glitch delays GST rebate and other tax credits to some lower-income Canadians

Technical glitch delays GST rebate and other tax credits to some lower-income Canadians

The federal government was more than a week delayed issuing payments of the goods and services tax/harmonized sales tax (GST/HST) credit and another key benefit for some lower-income Canadians, according to a tweet by the Canada Revenue Agency.

The tax agency was supposed to issue the latest payments of the GST/HST credit and the Ontario Trillium Benefit (OTB) on April 5 and 6, respectively. But in a tweet on Friday evening, the CRA indicated many of those payments went out much later.

For recipients that were affected by the delay, the “vast majority” of direct deposit payments for both benefits was issued on April 14, with the remainder going out on Monday, April 17, the tax agency tweeted from its official Twitter account. Canadians who normally receive the benefits by check would see the payment “in the days that follow.”

In Vancouver, some residents resort to dumpster diving to combat high food prices.

Previous CRA tweets said the delay was due to a “technical issue.” On Twitter, the tax agency first acknowledged a problem with both benefit payments on April 6, when it said it would communicate further updates. on a government web page about tax credits and benefits, its portal and social media.

The CRA said it was unable to respond to a request for further information by the early afternoon Eastern Time on Monday.

The GST/HST credit is a tax-free quarterly payment that reimburses Canadians with low and modest incomes for some of the sales taxes they pay. The OTB is a provincial benefit administered by the CRA that combines several income support payments for eligible Ontario residents.

Low-income expert John Stapleton called the payment delay “significant.” For Canadians who depend on those refundable tax credits to afford essentials, the glitch likely meant “missing meals,” Mr. Stapleton added.

With grocery pricing climbing at an annual clip of more than 10 percent, many low-income families are struggling to put food on the table, anti-poverty advocates have warned.

Ottawa announced a top-up of the GST credit, which it dubbed a “grocery rebate,” in the 2023 federal budget. Eligible Canadians can expect to receive the one-time payment following the passage of necessary legislation, the CRA said via tweet.

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