OAS Red Flags That Could Get You Noticed By The CRA

Carol Kostachuk
Jun 23
2 min read

Here are some red flags related to Old Age Security (OAS) that could prompt the Canada Revenue Agency (CRA) to review or reassess a recipient’s eligibility or

payment amounts:

1. Unreported Foreign Income

OAS is income-tested, and foreign pensions, rental income, or investment earnings must be reported. If CRA discovers underreported foreign income, it could lead to repayments, penalties, or interest charges. Even small amounts can affect your benefit if it puts you over the threshold.

2. Living Outside Canada Without Meeting Residency Rules

To receive full OAS benefits while living outside of Canada, you generally must have lived in Canada for at least 20 years after turning 18. Without this, your benefits could be reduced—or stopped entirely. If the CRA suspects that you’ve moved abroad without notifying them, it may trigger a review.

3. Not Meeting the 10-Year Residency Requirement

If you’ve lived in Canada for less than 10 years after turning 18, you typically don’t qualify for OAS. Applications that lack clear proof of residency may face delays, audits, or denials.

4. Discrepancies Between Reported Income and Lifestyle

If you’re claiming a modest income but your lifestyle suggests otherwise—think frequent international travel, luxury vehicles, or multiple properties—the CRA may investigate to determine if you’re fully disclosing all sources of income.

5. Unusual or Frequent Address Changes

Frequent address changes—especially across borders—can raise questions about your actual country of residence, which affects your benefit eligibility.

6. Failure to File Your Taxes

Your tax return determines whether you're subject to the OAS recovery tax (clawback). If you don’t file on time or at all, your payments can be delayed or suspended.

7. Undisclosed Marital Status Changes

Changes in your marital status can affect OAS and GIS benefits. If your tax filings or benefit applications don’t match, this may lead to reassessments or repayment requests.

8. Gifting or Transferring Assets

While gifting money to family members isn’t illegal, large or frequent transfers can raise suspicion if they appear to be an effort to lower your income for GIS or OAS clawback avoidance.

What You Can Do: Stay proactive. Keep good records, file on time, and report all relevant income and changes in personal circumstances. If you’ve lived abroad, make sure you can clearly demonstrate your time in Canada. If you’re unsure how to report certain income—especially from outside the country—consult a professional.