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Contents
About This FAM
| Responsible Agency: | Office of the Comptroller General |
| Issued: | May 2002 |
| Last Updated: | Aug 2009 |
1. Introduction
This directive sets out the terms, conditions and general administrative process for collecting delinquent accounts receivable using the Canada Revenue Agency (CRA) Refund Setoff Program. The Program allows the Government to make a third party demand against Income Tax refunds and Goods and Services Tax rebates of persons who owe money to the Government.
The CRA Refund Setoff Program is administered by the Government Financial Reporting and Collections Section of the Finance. This Section is the only point of contact in the Government of the NWT regarding the CRA Refund Setoff Program. Departments are not to contact CRA directly.
2. Definitions
3. Policy
The Controller General may through the Financial Reporting and Collections Section, Department of Finance collect delinquent accounts receivable using the Canada Revenue Agency Setoff program.
The Financial Reporting and Collections Section, Finance, shall participate in the Canada Revenue Agency Refund Setoff Program (referred to herein as the “Program”), in accordance with instructions issued from time to time by the Agency and the directives set out below.
4. Directives
| 4.1 |
The Program must be used as a last resort, after other appropriate collection methods have been exhausted, e.g.:
|
| 4.2 | Collection action via the Program will be taken immediately once other appropriate collection methods have been exhausted. There will be no grace period. The Agency Processing Division of CRA will notify by letter any debtor who has become subject to the Program. |
| 4.3 |
Delinquent accounts receivable collected under the Program will be applied to outstanding debt in the following descending order of priority. |
| 4.4 | Any payment received outside the Program, after the Program is accessed, must be submitted as an account adjustment under the Program no later than the Friday following receipt of the payment. If that payment is subsequently stopped due to a bad cheque, a corresponding reversal of the adjustment must be made immediately. |
| 4.5 | In the event of duplicate payments received for the same debt (i.e., from the debtor directly as well as through the Program), policy and procedural instructions from the Agency Processing Division of CRA must be followed in accordance with the CRA program manuals retained by Financial Reporting and Collections. |
| 4.6 | All information collected and sent to and from the CRA shall be protected utilizing proper security measures i.e.,data encryption. Account reconciliation data received from the Agency must be reconciled internally upon receipt. |
| 4.7 | In order to be considered valid, any claim of personal hardship by a debtor after notice of set-off under the Program must be supported by a review of the debtor’s financial circumstances. The debtor shall disclose his or her employment income, other income, living circumstances, obligations to dependents and creditors, and any other available relevant information. Financial Reporting and Collections may apply for forgiveness of the debt in accordance with FAM 2704 (Forgiveness) or collection through the Program may be postponed if Financial Reporting and Collections is able to negotiate a mutually agreeable payment arrangement or the case of hardship is no longer applicable in the circumstances. |
5. Authorities and References
6. Consequences from Failure to Comply
Failure to comply with policies and directives of the Financial Administration Manual may result in actions under Part X of the Financial Administration Act. The Government of the Northwest Territories may seek legal remedy in the Territorial Courts.