Can FRO Take My Tax Refund for Child Support Arrears in Ontario?

If you owe child support arrears and a tax refund is on the way, it is natural to worry that it will never reach you. In Ontario, the Family Responsibility Office (FRO) does have a way to reach certain federal payments.

This article explains what FRO can intercept, how much, what it costs, and what you can do about it. It is general information. Whether a particular payment can be taken from you depends on the facts, and a lawyer can confirm.

What FRO can do with federal payments

FRO can have federal payments such as tax refunds (income, HST/GST), EI, CPP, OAS and Bank of Canada savings bond interest reduced to pay support. This is one of several enforcement tools FRO has. Others include bank garnishment, credit bureau reporting, licence suspension, liens and writs of seizure and sale.

What about the GST/HST credit or the Canada Child Benefit?

The official list refers to tax refunds, including income and HST/GST refunds. It does not specifically name every benefit or credit the CRA pays out. Because of that, do not assume a particular benefit is safe or at risk. If you are relying on a specific payment, ask FRO or a lawyer whether it can be intercepted in your case.

It may help to know that child support itself is not deductible by the payer and not included in the recipient's income for court orders and written agreements made after April 1997. That is a tax rule about the support, not a rule about what FRO can take.

Costs and side effects

• The federal government charges an annual administration fee until FRO tells it to stop.
• A $400 administrative fee may be charged when FRO takes enforcement action.
• Interception is only one tool. FRO may also use bank garnishment, which can reach 100% of a sole account or no more than 50% of a joint account, held for 30 days.
• Credit bureau reporting can follow if no payment has been made in more than 60 days, and it stays on the credit history for six years from the date reported, even after arrears are paid.

Taken together, an intercepted refund can reduce your arrears, but it may also come with fees and other steps if the account stays in default.

Ways to deal with the problem

FRO says to contact them right away if you fall behind. It offers a voluntary arrears payment schedule, which requires a proposal form and a financial statement. Showing that you are working on a plan may help avoid harsher steps, though a plan does not erase what you owe.

FRO cannot change the amount of support in an order; only a judge can. It also cannot reduce or forgive arrears. That requires a court to vary or rescind the order, or a written agreement from the recipient filed with FRO.

If your income dropped or your situation changed, support may be open to variation. A change in circumstances for a table-based order is any change that would result in a different child support order. Under the Divorce Act, a court can vary support retroactively or prospectively. How far back a decrease can go depends on the facts, and the Supreme Court has said bad faith and lack of disclosure weigh against the payor.

What to do next

• Ask FRO for a current statement of what you owe.
• Check whether any notice from FRO or the federal government mentions your refund or other payments.
• Contact FRO before you fall further behind and ask about a voluntary payment schedule.
• Gather your income records, tax returns and notices of assessment.
• Speak with a lawyer if your income has changed and you think the order should be varied.
• Keep proof of every payment you make.

Frequently asked questions