Question: My Sisters Husband died and left no will, no insurance.She has nothing to her name and He owed $12,000 in back taxes to Revenue Canada. My sister lives in Ontario, does not work as she is physically incapable of performing a job and the only money she brings in is her Widows pension which Revenue Canada has taken upon themselves to take half of.
She got her taxes done today only to find out they are keeping her refund, half her monthly CPP and they want her to pay an additional $800.00 by May 2nd on top of that.
Answer: Whether or not it is legal is beyond the scope of this website; for that answer you would need to consult a lawyer. However, to answer your underlying question, yes, CRA does have the ability to garnish CPP if taxes are owing. Your sister has two options.
First, she could call CRA and attempt to work out a payment arrangement with them, so that perhaps they will agree to take less of her pension each month. It should be noted that if her late husband owed taxes, CRA should not be garnisheeing her pension; they can only garnishee her for taxes she owes, so that would be an issue to clarify with CRA.