Receiving a brown envelope from the Canada Revenue Agency (CRA) demanding payment of a debt can be stressful for anyone, especially for new Ukrainian immigrants who are still adapting to life in Edmonton. You may see an amount you did not expect or a message stating that you have been overpaid benefits, which you now have to repay. Panic is the worst response in this situation. The Canadian tax system, while strict, is quite logical and open to dialogue. In this article, we will take a detailed look at how to distinguish a real letter from a fraudulent one, why debts arise, and how to pay them, even if you don't have the money right now.
Step 1: Verify authenticity — don't fall victim to scammers
Edmonton, like many other large cities in Canada, regularly faces waves of scams targeting newcomers. Before reaching for your wallet, stop and analyze the message you have received. Scammers often use fear, threatening deportation, arrest, or immediate police intervention if you don't pay “right now.”
The real CRA operates differently. The official agency will never request payment in cryptocurrency (Bitcoin), gift cards (iTunes, Amazon, Google Play), or e-transfer to a personal email address. The CRA also never sends text messages (SMS) with links to “receive a refund” or “pay a debt.” If you receive a phone call and are aggressively asked for money, hang up.
The only reliable way to check if you have a debt is to log into your personal CRA My Account. There, in the “Accounts and payments” or “Mail” section, you will always see the actual status of your affairs. If you see a debt notice (Notice of Assessment or Notice of Collection) there, then it is official, and the problem needs to be resolved.
Step 2: Understand the nature of the debt
Why did the debt arise in the first place? For Ukrainians who came under the CUAET program, the most common reasons are recalculations of social benefits.
This often happens with Canada Child Benefit (CCB) or GST/HST credit. When you first applied, you provided an estimated income. If you later filed a tax return and your actual income was higher than the threshold for receiving assistance, the CRA may decide that it overpaid you and ask you to return the difference.
Another common reason is a change in marital status or address. For example, if you got married or started living in a common-law relationship, your total family income increased and your eligibility for certain benefits decreased. If you left Canada for an extended period of time but continued to receive payments, this will also result in a debt.
Read the letter carefully. It always states the reason: “Overpayment” or “Balance owing” (tax debt based on your return).
Step 3: If you agree with the debt but don't have the funds
This is the most important section. Many people are afraid to call the CRA, thinking that if they don't have the money, it's better to remain silent. This is a mistake. Ignoring the debt will result in the CRA charging interest (which is capitalized daily in Canada) and referring the case to Collections. CRA collectors have very broad powers: they can freeze your bank accounts without a court order, take part of your salary directly from your employer (wage garnishment), or intercept your future payments (for example, take your “child” money to pay off the debt).
If you cannot pay the entire amount at once, you are entitled to a Payment Arrangement.
You need to call the CRA (the number is usually indicated in the letter) and honestly explain the situation. Say, “I acknowledge the debt, but I am currently in a difficult financial situation. I would like to arrange a payment plan.” The agent will ask about your income and expenses (rent, food, utilities) and help you determine the amount you can realistically pay each month. It could even be $50 or $100 per month. The main thing is to stick to this schedule. As long as you pay according to the agreement, no one will block your accounts.
You can also set up automatic payments through TeleArrangement (an automated telephone service) or on your own in CRA My Account by setting up regular payments (Pre-authorized debit).
Step 4: If you disagree with the debt
Mistakes happen. Perhaps the CRA miscalculated your time in Canada or did not take certain expenses into account. If you are sure that you do not owe this money, do not pay it silently.
You have the right to file a formal objection — Notice of Objection. This must be done within 90 days of the date of the Notice of Assessment. The objection process suspends debt collection (except in certain cases) until your case is reviewed by an independent officer. You can file an objection online through My Account (under “Register my formal dispute”) or by mailing Form T400A.
Important: Filing an objection requires evidence. Simply saying “I disagree” is not enough. You must provide documentation: bank statements, airline tickets, proof of residence, etc.
Help in Edmonton
If you feel that you cannot handle the situation on your own due to a language barrier or the complexity of the situation, there are resources in Edmonton that can help.
First, contact the volunteer tax clinics (CVITP - Community Volunteer Income Tax Program). Although they mainly help with filling out tax returns, experienced volunteers can explain the contents of a letter from the CRA.
Second, if your income is low, you can try contacting Legal Aid Alberta or the student legal clinics at the University of Alberta (Student Legal Services of Edmonton). They sometimes provide advice on civil matters, although tax law is not always their priority.
Remember: your debt to the CRA will not disappear on its own and there is no statute of limitations that would allow you to simply “wait it out.” But the CRA is not a punitive body, it is a financial institution. Open communication and a willingness to resolve the issue (even in small steps) are always viewed positively and protect you from harsh enforcement measures.