Sisi Chan

Canadians have billions in uncashed cheques, rebates. Are you one of them?

Over four million uncashed government cheques in Canada, valued at more than $2 billion have been hanging since 2022. This explosive data comes from Public Services and Procurement Canada, prompted by the question from Conservative MP Adam Chambers.

The financial hardships faced by Canadians are ironically linked to this phenomenon of neglected cheques. This reveals a threat to the nation’s economic stability as Canadians leave money on the table due to uncashed cheques.

Details surface about more than 725,000 uncashed Canada Carbon Rebate cheques since 2022, with a total value of over $141 million. Additionally, close to 850,000 uncashed GST/HST tax credit cheques, worth over $118 million, slated for lower-income Canadians four times yearly, remain unclaimed.

Moreover, over 130,500 uncashed Canada Child Benefit paper cheques, nearly $43 million in value, lie forgotten. The change in fortunes continues with more than 450,000 unredeemed income tax refunds from the CRA, especially those after filing a T1 tax return, each contributing nearly $392 million to uncashed cheques.

A scrutiny of uncashed GST rebates paper cheques reveals nearly 4,500 of them worth over $25 million lying untouched. However, these are different from the GST credit.

Canadian taxpayers can confirm if they have uncashed cheques by checking their CRA accounts online or calling the agency directly. The CRA, along with other government agencies, prefer the direct deposit method due to its efficiency.

A statement from Public Services and Procurement Canada accentuated the advantage of direct deposit over other modes of payment, leading to their active promotion of this method. However, transitioning from cheques to direct deposit presents significant challenges.

Several attempts at introducing prepaid cards as check substitutes have been made to reduce administrative costs. Public opinion research conducted in 2017 and 2020 displays a favorable sentiment towards this endeavor.

Yet, issuing paper cheques costs the administration about $1.84 each, adding a financial burden to an already strained economy.