
When TFSA Mistakes Become Costly: Federal Court Upholds CRA’s Strict Approach
January 14, 2026
A proposed settlement has been reached in the Sweet v. His Majesty the King class action, addressing allegations that a Government of Canada privacy breach exposed personal and financial information from online federal accounts. The case affects individuals whose information was disclosed without authorization between March 1 and December 31, 2020 while using platforms such as CRA’s My Account, My Service Canada Account, or other services accessed via GCKey.
The lawsuit claims that inadequate safeguards allowed third parties to access sensitive data through government online systems. Although the Government of Canada denies wrongdoing, both sides have agreed to a proposed settlement that must be approved by the Federal Court. This agreement represents a compromise rather than an admission of liability.
A Settlement Approval Hearing is scheduled for March 31, 2026, at the Federal Court in Vancouver, with the option to attend virtually via Microsoft Teams. The representative plaintiff is Todd Sweet, and legal representation is provided by Rice Harbut Elliott LLP. During the hearing, the Court will determine whether the settlement, legal fees, and proposed honoraria for representative plaintiffs are fair and reasonable.
Class Members will be bound by the settlement unless they choose to opt out by February 20, 2026. To opt out, you must:
- Submit an opt‑out request during the official opt‑out window
- Provide any required information—typically your name, contact information, and confirmation that you wish to be excluded.
- Follow the instructions posted on the official settlement page at Canada.ca or the settlement administrator’s site.
For additional details about the case, please visit Notice of Proposed Settlement and Settlement Approval Hearing – Canada.ca


