Question Period Note: 2021 Pensions Programs Tax Slips

Why are some seniors receiving their Old Age Security (OAS), Canada Pension Plan (CPP), and One-time Payment for Older Seniors tax slips late?

• Service Canada regrets that an error occurred related to tax slips that have been sent to some individuals who received the One-Time Payment for Older Seniors.
• Follow-up with impacted individuals is underway to minimize any potential inconveniences.
• To ensure that all seniors have the correct information when filing their taxes, all individuals who received an incorrect tax slip will be issued an amended tax slip in time for the tax filing season.
• At the same time, seniors will also receive a letter explaining the error and how to accurately report the One-Time Payment on their income tax return.
• The vast majority of seniors will only receive correct tax slips, however some will receive their tax slips in early-March. Every effort is being made to minimize delays and all seniors will receive their tax slips in time for the tax filing season.
• If seniors consult the online version of their tax slips on CRA’s My Account, they will see the correct tax slip. As well, if using “Auto-fill My Return” to prepopulate their tax return, the correct information will be included on the tax return.

The One-Time Payment for Older Seniors (OTP) was a taxable grant issued in summer 2021 to 3.4M OAS recipients born on or before June 30, 1947.

During the tax slip printing process, an error was identified with the slips being issued to clients. As soon as this error was identified, all mailing was stopped; however, 67,799 incorrect slips were mailed before this error was identified. This error was only present on the printed tax slips; the tax information sent electronically to the Canada Revenue Agency (CRA) was correct, and will be available online to clients.

As a result of this error, two issues need to be addressed:
• Amended OTP tax slips will be issued by no later than February 28 to the 67,799 clients whose tax slips were mailed before the error was discovered;
• All tax slips that were printed (but not mailed) will be securely destroyed, and corrected tax slips will be printed and mailed.
While this work has started, this interruption in the print schedule will cause a delay in the completion of this mailing. As OAS and CPP tax slips are printed and mailed together with the OTP tax slip, all pensions programs tax slips are impacted by this delay.

All tax slips are expected to be mailed no later than the week of March 14. Many will receive them before February 28. Individuals will receive their T4 slips in advance of tax filing deadline of April 30.

The data provided to CRA is correct. If clients consult the online version of the OTP tax slip on CRA’s My Account, they will see the correct tax slip. As well, if clients use the function to prepopulate their tax return, the correct information will be included on the tax return.

In collaboration with the CRA, call centres and in-person centres have been provided instructions on how to respond to client questions. This includes how to guide them to correctly report the One Time Payment for Older Seniors on their income tax return, or requesting a reassessment from CRA if the return was filed with the erroneous information.

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