She claimed nearly $10 million in foreign income despite earning only $54,000 annually.

The CRA issued a refund of $4,958,716.63 in May 2025.

This refund was flagged for manual review, but no follow-up occurred.

Within two months, the CRA identified the error. Authorities believe no taxes were paid on the claimed income.

The CRA stated that one of the forms on file was invalid—leading to the erroneous refund.

As of now, Wallace owes $7.9 million, including interest and penalties.

This incident has raised serious concerns about the CRA’s oversight and verification processes.

Legal and recovery proceedings have begun. Assets linked to the payout are being tracked by authorities.

The CRA is reviewing its internal processes following this incident. This case highlights a breakdown in oversight, especially since it had reportedly been flagged for manual review before approval.

Details remain unconfirmed regarding any further actions by the agency or potential changes to their procedures.

The case continues to trend globally, becoming a key example of how even advanced tax systems can face unexpected failures.

Сообщение Canada Revenue Agency erroneously issued another bogus $5 million refund появились сначала на justrealnews.