Feds Want Banks to Identify Carbon Rebates by Name in Direct Deposits

A person inserts a $20 bill in a file photo. Ryan Remiorz/The Canadian Press

The federal government wants its carbon rebates labelled as such when they arrive as direct deposits in Canadians’ bank accounts.

Environment Minister Steven Guilbeault said this week his government is looking at amending the Financial Administration Act to require banks to identify payments using the government’s wording rather than a more general label such as “Deposit Canada,” The Canadian Press reports.

In 2022, the first carbon tax rebates were labelled “EFT Canada” along with other more generic terms, which did not inform Canadians why they were receiving the money from the government.

Some banks will list the rebates as the “Canada Carbon Rebate” this year, but others, such as CIBC, have labelled the deposits as “Deposit Canada.”

The Bank of Montreal and Toronto Dominion have addressed the government’s concerns and labelled the deposits “CdaCarbonRebate.”

According to Mr. Guilbeault, many Canadians are unaware they have received their carbon rebates because of the labelling of the deposits.

“I think we took it for granted that since people were receiving it, people knew they were receiving it,” he said. “We’ve come to discover over the last few months that it wasn’t the case” because of how the deposits are being “mislabelled” by most financial institutions.

Mr. Guilbeault said he doesn’t think the amendment would cost the banks anything. “I feel that, as a client, we should have the right to label this the way we feel it should be labelled and it’s not up to the banks to decide.”

The change comes as the Liberal Party and Prime Minister Justin Trudeau have touted the carbon tax rebate as a net benefit to 8 in 10 Canadian households, saying they would get more out of the carbon tax than they paid into it.

Tory Leader Pierre Poilievre has claimed the opposite, citing figures from the Parliamentary Budget Officer that show most families will see hundreds of dollars in net losses, even after receiving the carbon tax rebates.

Mr. Poilievre repeatedly urged the Liberals to stop the 23 percent carbon tax increase before it took effect April 1. It went ahead after an unsuccessful motion and a failed non-confidence vote in the House of Commons.

Earlier this month, however, the House of Commons passed a Conservative motion demanding that Mr. Trudeau meet with provincial leaders over the carbon tax hike.

The motion, which said the meeting should take place within five weeks of its passing on April 10, arose after premiers in Ontario, Saskatchewan, Alberta, Nova Scotia, New Brunswick, and Newfoundland and Labrador requested a meeting with the prime minister.