Why does the revenue canada want interest payments on my Employment Insurance Income?

[NazMusthafa]

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The CRA has announced they are temporarily relieving interest on taxes owed for certain individuals. If you fulfill all of the requirements below, you won’t have to pay interest on any amount owed from your 2020 taxes until April 30, 2022. This relief is automatically applied and doesn’t apply to other, previous debts owed to the CRA. 

1. You received at least one of the following COVID-19 benefits in 2020:
   • Canada Emergency Response Benefit (CERB)
   • Canada Emergency Student Benefit (CESB)
   • Canada Recovery Benefit (CRB)
   • Canada Recovery Caregiving Benefit (CRCB)
   • Canada Recovery Sickness Benefit (CRSB)
   • Employment Insurance (EI) benefits
   • Provincial or territorial emergency benefits
2. Your taxable income in 2020 was $75,000 or less
3. You filed your 2020 taxes, and
4. You owe a balance on your 2020 tax return

Interest relief only applies to your 2020 taxes owing and not on previous or other debts with the CRA. 

For 2020 taxes, the CRA is not using income support benefits (such as the Canada Child Benefit and the GST/HST credit) to help pay off individual tax debts.

Note: You need all the above to be eligible for interest relief.

If you do not meet the criteria, review other options in Taxpayer relief provisions.

For further information please click: Interest relief if you received COVID-19 benefits.