The Cost of Survival: How CRA Bureaucracy Penalizes Trafficking Victims

For survivors of human trafficking, the path to stability is often blocked by a secondary, invisible trauma: the financial wreckage left behind by their abusers. While many focus on the psychological recovery, the systemic failure to recognize financial coercion can turn a quest for independence into a bureaucratic nightmare.

As first reported by CityNews Toronto, Cassandra Harvey is currently locked in a years-long struggle with the Canada Revenue Agency (CRA). Harvey, who was groomed at age 14 and spent four years in a trafficking situation, discovered that her identity had been weaponized against her. Her traffickers opened phone bills, credit cards, and payday loans in her name, accumulating more than $65,000 in debt.

While Harvey successfully cleared that private debt with the help of volunteers, the federal government has proven less flexible. According to CityNews Toronto, Harvey's trafficker claimed Canada Emergency Response Benefit (CERB) payments and a significant portion of her child tax benefit during the COVID-19 pandemic. Despite the fact that these funds were stolen, the CRA has spent years clawing back money from Harvey’s tax returns, GST, and HST payments.

For a single mother and university student living on a fixed income and managing student loans, these deductions are more than just administrative errors—they are a severe financial burden. Harvey told CityNews Toronto that she has attempted to provide the agency with context regarding the financial coercion she suffered, but her requests to meet and explain her history were unsuccessful.

This rigidity is a systemic issue rather than an isolated incident. Richard Dunwoody, a retired banker and founder of Project Recover, told CityNews Toronto that he has worked with hundreds of survivors to clear debts racked up by traffickers. Dunwoody noted that while private creditors were often eager to help, the CRA has not followed suit. He described the pursuit of funds from individuals who were trafficked during the CERB period—when bank account control was held by others—as "just wrong."

In response to CityNews Toronto, a CRA spokesperson stated the agency is committed to resolving such situations "responsibly and ethically" and takes cases involving exploitation with "the utmost seriousness." However, the spokesperson declined to comment on Harvey's specific case, citing confidentiality provisions of the Income Tax Act.

Harvey, who has now hired a lawyer, argues that the agency is staffed by CPAs who possess financial expertise but lack education on the realities of human trafficking. To bridge this gap, she is advocating for the creation of an advisory board to help CRA staff understand the specific hurdles survivors face and to provide them with necessary relief.

As Harvey continues her fight, she warns that not every survivor has the resources or the position to advocate for themselves. For those without legal counsel or a public platform, the CRA's insistence on repayment becomes a permanent penalty for a crime they did not commit.