CERB and CRB Debt: The Six-Year Clock, and What Restarts It

Oct 6

Written By Elias .

Short answer: CRA generally has six years to take legal action to collect a CERB or CRB overpayment. That clock can be reset, sometimes long after it has run out, by a payment, a promise to pay, or a written acknowledgement of the debt. Before you agree to a payment plan or sign anything, know where your clock stands.

Why this matters now

CERB was paid from spring to fall 2020. Six years from 2020 is 2026. For many recipients who received a repayment letter and never resolved it, the timing of every step from here on matters.

This article is not about avoiding a debt you legitimately owe. If you owe the money and can pay, repaying may be the right decision. The point is to make that decision knowing its legal effect, rather than restarting a six-year clock by accident.

The six-year rule

Under the Canada Emergency Response Benefit Act, no action or proceedings may be taken to recover money owed under the Act once six years have passed from the day the money became due and payable. The Canada Recovery Benefits Act, which covers the CRB, CRSB and CRCB, has a parallel six-year rule in section 33.

When does the clock start? CERB and CRB are different

CRB, CRSB and CRCB: the clock generally runs from the date CRA determined that you were overpaid.

CERB: the CERB Act says an overpayment is a debt as of the day it was paid. On that reading, the clock for each CERB payment started when you received it, which would put many 2020 payments at or near six years in 2026. CRA may argue that the clock runs from its later determination instead. No court has settled this yet, so anyone relying on it should plan for both dates.

What restarts the clock

The legislation says that if your liability is acknowledged, the time that ran before the acknowledgement does not count. In other words, the six years start over. Acknowledgement includes:

a payment, even a small one, toward the debt;
a written promise to pay;
a written admission that you owe the money; and
certain steps in bankruptcy proceedings.

Three features of these rules surprise most people.

1. An acknowledgement can revive an expired debt. Even after six years have passed, an acknowledgement can start a fresh six-year period. A debt CRA could no longer sue on can become fully enforceable again.

2. Small payments count. A token payment plan, such as a few dollars a month, is a series of acknowledgements. Each payment resets the clock.

3. Your representative's words count too. An acknowledgement made by someone acting for you can restart the clock, even if they also say you won't pay. This is why letters to CRA on your behalf need to be worded carefully.

What the six-year limit does NOT stop

The limitation period stops lawsuits. It does not stop every form of collection.

Set-off continues indefinitely. CRA can recover CERB debt at any time by deducting it from money the federal government owes you, except Canada child benefit payments. In practice this means future tax refunds, GST/HST credits and similar federal payments can be applied to the debt indefinitely.

A Federal Court certificate changes the picture. If CRA has already registered a certificate for the debt in the Federal Court, it can be enforced like a court judgment, outside the six-year limit. Find out whether a certificate exists before relying on the limitation period.

The clock can pause. For CERB, the period is suspended while legal proceedings to collect are prohibited, such as during certain insolvency stays. For CRB-family benefits, it is also suspended while a review of your eligibility is pending.

No interest, but the principal stays

There is one piece of good news: no interest is payable on amounts owed under the CERB Act, and the CRB Act has the same rule. Your balance will not grow while you sort this out. It also means CRA's taxpayer relief program, which cancels interest and penalties, has nothing to cancel here.

Was your CERB from CRA or from Service Canada?

CERB was paid by two agencies. Some recipients applied through CRA, while EI claims made from mid-March 2020 were automatically processed as CERB through Service Canada. Service Canada's version is governed by the Employment Insurance Act, under different rules. Check your letters and records to confirm which agency paid you before applying anything in this article.

What to gather before you do anything

Every repayment letter, with its date.
The date of each benefit payment you received, available from your CRA My Account or bank statements.
A record of any payment you've made toward the debt, and any letter, call or online form where you agreed to pay.
Any notice mentioning a certificate or Federal Court.
The name of the agency that paid you: CRA or Service Canada.

With these, a lawyer can tell you where your clock stands, whether set-off or a certificate changes the picture, and whether challenging the debt itself is still possible.

How ZAF LAW can help

ZAF LAW focuses on COVID benefit debt and CRA taxpayer relief for individuals in Ontario. Our fixed-fee benefit debt opinion reviews your payment dates, letters and any acknowledgements, and gives you a written view on where you stand before you speak to CRA. We do not handle Federal Court judicial reviews ourselves, but we will refer you promptly if your matter needs one.

Book a consultation with ZAF LAW

This article provides general information only and is not legal advice. Reading it does not create a lawyer-client relationship. The CERB start-date question discussed above has not been decided by a court. This article is current as of October 2026. For advice on your situation, consult a lawyer.

Elias Zafiridis is an Ontario lawyer whose practice focuses on tax disputes with the Canada Revenue Agency. He has appeared before the Tax Court of Canada and has written on tax for Thomson Reuters Taxnet Pro, Investment Executive and Law360 Canada.

Sources

Elias .