How long a debt can be collected by the CRA

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https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/when-you-money-collections-cra/collections-limitation-period.html

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How long a debt can be collected by the CRA

The CRA can collect a debt for a certain time limit set by the law called the collections limitation period. This period starts and ends at different times depending on the type of debt you owe. It can also be restarted or extended when certain actions happen.

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How long we can collect different types of debts

We can collect on a debt for either 6 or 10 years from the date the limitation period starts. The start date and length of the limitation period depends on the type of debt you owe.

Limitation period start and lengths by type of debt
Type of debt When the limitation period starts Limitation period length

Canada Pension Plan (CPP)

Old Age Security (OAS)

 No limitation period No limitation period
COVID-19 benefits for individuals The day the Notice of redetermination is sent
 6 years
Customs debt
 The 91st day after a notice, notice of assessment or reassessment is sent
 6 years
Employment insurance (EI)

 The day the overpayment happens
 6 years
Payroll debt
 The day after a notice of assessment or reassessment is sent
 6 years

Student loans, such as:

  • Canada Student Loans
  • Canada Apprentice Loans
  • Saskatchewan provincial portion of student loans
 The day the loan comes into effect

6 years, except when:

  • provincial legislation (a judgement) overrides the original limitation (may vary from 10 years to unlimited)
  • the loan was established or expired before August 1, 2003 (no limitation period)

Individual tax

Corporate tax

COVID-19 subsidies for businesses

 The 91st day after a notice, notice of assessment or reassessment is sent 10 years
Goods and services tax (GST) / harmonized sales tax (HST) remittance debt
 The day after a notice of assessment or reassessment is sent

10 years

How the period is restarted or extended

A limitation period can be restarted or extended with certain actions.

Actions that will restart a limitation period

Here are a few examples of actions that may restart the limitation period:

Actions you take
  • Making a voluntary payment
  • Writing a letter to the CRA to propose a payment arrangement
  • Providing a written acknowledgment of debt
  • Offering to provide security instead of paying the amount owed
  • Making a written request for a reassessment
  • Filing a notice of objection
  • Filing an appeal
  • Asking the CRA if you can make pre-authorized debit (PAD) payments

Actions we take
  • Issuing a garnishment or set-off to collect an outstanding debt when you don't make voluntary payments
  • Applying a tax refund or another credit (such as GST/HST credit) to your debt
  • Issuing a notice of assessment or reassessment against a third party for amounts you owe
  • Certifying your debt in the Federal Court of Canada
  • Initiating seizure and sale of assets to collect your outstanding debt

Actions that will extend a limitation period

A limitation period can be extended when certain events happen. The limitation period will pause when we are notified of the event starting. When the event is over, the limitation period restarts where it left off. It may take more than the 6 or 10 years to reach the end of the limitation period.

For example, if there was an event that extended a 6-year limitation period by 2 years, it would actually take 8 years to reach the end of the limitation period.

Actions you take
  • Filing for bankruptcy or making a proposal under the Bankruptcy and Insolvency Act, Farm Debt Mediation Act, or Companies’ Creditors Arrangement Act
  • Becoming a non-resident of Canada after the CRA issues a notice of assessment or reassessment
  • Filing a notice of objectionFootnote 1
  • Filing an appealFootnote 1
  • Being ordered by the court to make payments as part of your sentence (EI only)

Actions we take
  • Accepting security instead of payment of your debt
  • Postponing collection action without accepting security for your objected or appealed GST/HST debtFootnote 1

What happens when the limitation period ends

Usually we can't take any other action to collect your debt once the limitation period ends. However, your debt remains and you can make voluntary payments. Any voluntary payments you make after the limitation period ends should not restart it.

For EI debt, do not make any payments after the limitation period expires.

Exceptions when the limitation period may restart:

  • A voluntary payment made for a Canada Student Loan or Canada Apprentice Loan
  • An acknowledgement of the debt for COVID-19 benefits for individuals

Footnotes

Footnote 1

This will extend the collections limitation period only for tax debts subject to collection restrictions.

Return to footnote1 referrer


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Date modified:
2024-04-18