Mundy says she will fight any CRA clawback of benefits for grandparents caring for children

An Island program to help grandparents caring for their grandchildren may mean less from a federal tax benefit, something the provincial government says it is fighting against.

P.E.I.'s Minister of Family and Human Services Tina Mundy said the Canada Revenue Agency contacted her department shortly after a $700 a month grandparent  benefit was announced.

Mundy said the concern was that the children in the provincial program would not be wholly dependent on the grandparent or caregiver and therefore ineligible for the Canada Child Benefit, a non-taxable benefit for eligible parents of children under the age of six.

A spokesperson said the CRA reviews new provincial legislation to determine any impacts on the other laws it administers. The agency never said there would be a claw back, just that they need to gather more information and determine what effect P.E.I.'s new program would have.

The agency said it received a draft of the policy Wednesday night after Mundy issued a press release, and said it will continue to work with the province on the matter.

Mundy said she will fight to prevent any cutback in the federal tax benefit because of the province's new program.

"I do feel that it is unacceptable. The well-being of children should always be both levels of government's priority so I know that I was a little bit strong coming out with my press release but that is who I am and that is how I feel," she said.

"To me, I will continue to fight for these caregivers to make sure that these children are given every opportunity to succeed at life."

Mundy said she wanted to make these grandparents and caregivers aware that the provincial funding will still be provided.

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