Adjustments related to the Canada Child Benefit.
The Canada Child Benefit (CCB) is a tax-free amount paid monthly to eligible families to help them support the needs of their children under 18 years of age.
When a recipient does not receive the maximum CCB amount paid by the Canada Revenue Agency (CRA) for eligible minors, the Band Council will pay an adjustment in an amount equal to the difference between the monthly CCB adjustments set by the Policy Framework and the actual CCB calculated by the CRA.
This is called the “NCBS destitution clause.” It applies only when there is at least one dependent minor child eligible for the CCB.
Note: When an adult client of the Income Security Program has a spouse who is eligible for the 66/72 benefit, these adjustments will be paid only for the dependent child or children of the parent who is not eligible for the 66/72 benefit, in accordance with the terms of the adjustment.
Calculation of the Canada Child Benefit
The CCB amount calculated by the CRA will:
- Reduce the CCB adjustment set by the Policy Framework to establish the “NCBS destitution clause”;
- Not reduce the family’s basic benefit or other amounts the family may be granted. Even if the income actually received through the CRA’s CCB is greater than the CCB adjustment amount, this difference will never reduce the income security benefit granted to the family.
- Affect the current month’s “NCBS destitution clause.” This is an exception to the principle of the anteriority of the deficit. The family is deemed to receive, on a monthly basis, the CCB amount divided by 12, regardless of the payment method used by the CRA.
The CCB is considered to have been received by the family when it is paid to a CCB recipient who is not a family member but who uses this amount to provide for a dependent child or children of the recipient family of the Income Security Program.
Reduction of the Canada Child Benefit
When the CCB payments to a client of the Income Security Program are reduced to compensate for an overpayment, the Income Security Program may compensate the deficit up to an amount equivalent to the “destitution clause” adjustment. This financial assistance is reimbursable once one of the following events occurs:
- The CRA ceases to withhold payments; or
- The recipient ceases to be eligible for the Income Security Program.
The recipient has a choice between the benefit for which the CCB income is considered in full and the adjustment amount set by the Policy Framework, which comes with the obligation to repay the portion that corresponds to the amount paid.
Note: When the adult has a spouse who is eligible for the 66/72 benefit, only the situation of the dependent child or children of the parent not eligible for the 66/72 benefit will be considered in establishing the deficit created by this situation.
Note: If a child is residing in or under the care of a youth centre, a special allowance will be paid directly to the centre by the CRA.
Arrears paid for the Canada Child Benefit
As of September 1, 2016, arrears paid by the CRA for the CCB are excluded as a liquid asset for 12 months from the date of payment.