Hi I may be able to solve this dilemma. I just talked with a wonderful creditor (sarcasm!), who told me that only provincial student loans can be taken from income tax refunds. I hope he knows what he is talking about:) After this news, I went and looked at the Income Tax Act and right at the start, in the definition section, it explains that "agreeing parties" refers to provinces that made an agreement with the federal government. It goes on to say that the "agreement" means that the federal government will collect what is owed to the province for them through income tax refunds.

So, perhaps your provincial loan was paid off and although the federal one is owing, they can not access your refund! I hope so!

I have confirmed this verbally with a Canada Revenue Agency CSR as this same situation happened to me.

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http://watchonlinemoviez.net

Thank you all so much for the help. was a little confusing but i think i know a little more now than i did before lol

Yes, the CSL is the older of the 2 Acts, and it, too, uses the terms "actions and proceedings." I assumed she got her loan after Aug. 1, 1995.

Well, here is what the Canada Student Financial Assistance Act says:

Limitation period

16.1 (1) Subject to this section and section 16.2, no action or proceedings shall be taken to recover money owing under a student loan more than six years after the day on which the money becomes due and payable.

And here is what the Crown Liabilities and Proceedings Act states

32. Except as otherwise provided in this Act or in any other Act of Parliament, the laws relating to prescription and the limitation of actions in force in a province between subject and subject apply to any proceedings by or against the Crown in respect of any cause of action arising in that province, and proceedings by or against the Crown in respect of a cause of action arising otherwise than in a province shall be taken within six years after the cause of action arose.
R.S., 1985, c. C-50, s. 32; 1990, c. 8, s. 31.

The former Act mentions "actions and proceedings" as if to differentiate them while the latter uses the term "proceedings."

Does the term "action" in 16.1 refer to legal action and does "proceedings" refer to subsequent assignment to collection agencies along with the wihholding of tax refunds under the authority of certificates? I don't know.

I do know, federal legislative acts can't contradict one another. Government agencies don't have use the courts to recover money. Instead, they can issue recovery certificates to banks, investment firms and tax authorities to seize/garnish/withold assets.

And so, addressed by S 16(1), is the issue of whether the Government can still make collection efforts, even if they can't legally retain assets after the limitation period has expired - like private creditors can do in some Canadian provinces (like Ontario). Clearly, they can't.

It unequivocally appears that, after 6 years, if the federal government hasn't commenced collection proceedings under a certificate or through the courts, they are legally obliged to leave you alone. This isn't to say the limitation period isn't deliberately or accidentally ignored in many cases. It certainly can be as is evidenced by the Canada Student Loan debt forums.

ok everyone, so i went to H&R block not expecting to get the money, i was sure CRA would be keeping it due to the situation i explained above...But for some reason, and neither the tax agent or i undersand it (but also an agent at cra told me in the past) it shows no balance owing and i got my taxes back today for 2007/08 and 09..AND they did it cash back. I dont know what has happened but somehow its no longer showing that my taxes are to be held..still confused, but not complaining lol

Maybe this will clear eveything up.....

Bill C28 - Admendments to Student Loan Act.

http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=2331383&Language=e&Mode=1&File=92

"19.1 (1) Subject to this section and section 19.2, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the money becomes due and payable."

DanielBl

Please correct me if am I wrong, but it is my understanding that Section 32
of the Crown Liability and Proceedings Act sets a limitation period of 6 years in which to commence a proceeding, not to collect on a debt. You indicated this in a previous blog.

Comments?

@Daniel

They do administer everything unless your loan is defaulted on.Then you have to deal with Canada Revenue Agency as they act as the collection agency for the Canada Student Loan portion.

Too much to type out. Read the OSAP website page since they now administer everything.
https://osap.gov.on.ca/OSAPPortal/en/OSAPBasics/HowItWorks/TCONT003408.html