The Alberta government wants to change its tax rules so people don’t have to repay carbon tax rebates or child and family benefits after the death of a family member.
The changes are outlined in the Tax Statutes Amendment Act 2017, introduced in the legislature Wednesday by Finance Minister Joe Ceci.
Ceci said at a news conference that the Canada Revenue Agency had been sending “bluntly worded” letters to grieving families telling them they must pay back all or part of the money. He said anyone who received such a letter can disregard it.
“The last thing anyone needs at a time like that is a letter that causes further stress,” he said.
“Grieving families should not face the indignity of a collection letter demanding the repayment of a benefit that is supposed to make their lives better.”
Since Jan. 1, the date the carbon tax came into effect, 4,000 households had to return their rebates.
The average amount recovered by CRA was $100. The money will automatically be given back to those who were forced to return their rebates.
The government is also proposing changes to prevent clawbacks of Alberta Child Benefit and the Alberta Family Employment Tax Credit paid to families of deceased children.
If the bill passes, the government will no longer recover benefits paid to these households, retroactive to Jan. 1. Approximately 200 families are affected each year.
Ceci said he personally spoke to several families who complained to his office about the clawbacks. He said he was disappointed to learn about what he called an unintended consequence.
“I extended that understanding to them, that this was unexpected, that we would make it right and I, of course, extended condolences.”
Other changes are aimed at reducing future clawbacks. The minimum carbon tax rebate is $100. Anyone who qualifies for that amount currently receives a single payment.
The bill would ensure those people can get four payments a year of $25. The change ensures the system can respond faster to a death in the family or a change in eligibility, such as a move away from Alberta.
Any amounts that were paid in the previous quarter would not have to be returned.
The Alberta Child Benefit is already paid four times a year. The bill doesn’t change the frequency of the Alberta Family Employment Tax Credit , which is paid twice a year.