If your personal data and information were leaked and exposed during the widespread federal cyberattacks in 2020, you may soon be eligible for a compensation payment of up to $5,200. The Federal Court of Canada has officially approved and declared an $8.76 million settlement in a verdict. The decision was taken in Sweet v. His Majesty the King (2026 FC 590).
It was brought under closure to a multi-year privacy lawsuit involving government online accounts. In this article, we are going to complete breakdown of the CRA Class Action Lawsuit. This blog also includes timeline projections, CRA Class Action compensation eligibility rules, payout tiers, and a guide to preparing documents for a claim.
What Prompted the CRA Class Action Lawsuit?
Between 1st March 2020 and 31st December 2020, cybercriminal actors launched extensive “credential stuffing” attacks against the Canadian Government’s CRA Portal. Through unauthorised password-attempt data leaked from third-party data breaches. Hackers bypassed security controls and compromised crucial data and information. Approximately 47,000 online profiles were impacted during this data breach. The CRA Data breach targeted several key platforms:
- Canada Revenue Agency My Account
- My Service Canada Account (MSCA)
- Federal portal accessed via the GCKey login service
Who was impacted by the CRA Lawsuit?
Once inside, unauthorized hackers and individuals gained access to Social Insurance Numbers (SINs), banking details of beneficiaries and taxpayers, tax records, and employment histories. In some cases, attackers used stolen identities to file fraudulent claims for pandemic relief benefits, such as the Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB).
The legal team representing affected taxpayers filed the CRA Class Action lawsuit. They alleged negligence and privacy violations. While the federal government denies liability, both parties agreed to an $8.76 million settlement to provide compensation without prolonged litigation.
How Much Money Can You Receive From the CRA Settlement?
Out of the $8.76 million total fund, approximately $6 million is dedicated directly to claimant compensation. The remainder covers legal fees and administrative costs for this case. Payouts under the CRA Class Action are categorized into three different tiers:
| Tier | Compensation Category | Maximum Payout | Requirements & Details |
| Tier 1 | Access Claims | Up to $80 | For those users whose data was used to commit identity theft or file fraudulent benefit claims. Calculated at $20/hour for up to 10 hours of effort spent resolving the issue. |
| Tier 2 | Fraud Victims | Up to $200 | For those users whose data was used to commit identity theft or file fraudulent benefit claims. Calculated at $20/hour For up to 10 hours of effort spent resolving the issue. |
| Tier 3 | Special Compensation | Up to $5,000 | For verified out-of-pocket financial losses (direct losses) from the data breach. Requires proof of expenses. |
If you qualify for 1st, 2nd, and 3rd Tier, your combined compensation under the CRA Class Action Lawsuit Settlement can reach a maximum total of $200 + $5,000 = $5,200.
What Expenses are Qualified for the $5,000 Special Fund?
To claim from the Special Compensation Fund of $5200 under CRA Lawsuit Settlement, you must provide verifiable proof of unreimbursed or unclaimed out-of-pocket expenses sustained within 1 year of the breach. These expenses can include:
- Unreimbursed financial losses directly linked to the identity theft.
- Professional legal or accounting fees required to repair your identity or credit.
- Out-of-pocket fees for credit monitoring or credit freeze services.
Who Is Eligible to File a CRA Class Action Settlement Claim?
You are automatically considered a class member in the CRA Class Action Settlement Beneficiary if you meet the following criteria:
- Your online account on CRA, My Service Canada, or the GCKey portal was accessed by an unauthorized person between March 1, 2020, and December 31, 2020.
- You did not choose the class action formally prior to the court-mandated deadline.
Receiving a CRA official notice about changing your password in 2020 does not automatically ensure that you will get a compensation payment. Your account must be on the official claims administrator’s list of compromised accounts.
When Will the CRA Class Action Claim Portal Open?
The lawsuit verdict was approved by the court; the CRA Class Action agreement was signed on 5th May 2026. Under the terms of the settlement, the official claim submission period begins 60 days after the Effective Date (Estimated Date: 5 July).
While court officials have not released an exact calendar launch date, the online portal is scheduled to go live during the summer of 2026. Once opened, eligible Canadians will have a 6-month window to submit their claim online or by phone. Late applications will not be processed.
How to Submit a CRA Settlement Claim?
Whenever the claim submission window opens, it will be handled exclusively by the court-appointed claims administrator, KPMG.
- Official Portal: www.breachsettlementcanada.kpmg.ca
- Toll-Free Phone Line: 1-833-724-6160
- Administrator Email: breachsettlementcanada@kpmg.ca
Required Steps and Actions for Claim Submission
Gather Supporting Documents: If you plan to apply for Tier 2 or Tier 3 compensation under the CRA Class Action, collect emails from the CRA, police reports, receipts for credit monitoring, bank statements showing fraudulent transactions, and correspondence with credit bureaus.
Verify Communication
Watch for direct email or letter notifications from KPMG confirming your status as an eligible claimant.
Beware of Settlement Scams
Applying for the CRA Class Action is 100% free. Neither the CRA, KPMG, nor the legal counsel charges you a claim application fee or requests your online banking passwords to deposit a claim.
Is CRA Settlement Compensation Taxable?
In Canada, damages awarded for personal injury, inconvenience, or privacy breaches are generally categorized as non-taxable under the surrogatum principle, as they compensate for personal harm rather than replacing lost income. However, tax implications can vary for reimbursed business expenses, so consulting a tax professional upon receiving a payout is recommended. Keep visiting canadacalculators.ca for more updates on CRA benefits, payments, support calculations, and news.
