Background
Leslie Sinclair applied for and received the Canada Recovery Benefit (CRB) from September 27, 2020, to October 9, 2021. In May 2023, nearly two years later, the Canada Revenue Agency (CRA) notified her that she may have been ineligible because she had not earned at least $5,000 of employment and/or self-employment income in 2019, 2020, or the 12-month period preceding her application—a statutory eligibility requirement under the Canada Recovery Benefits Act. Following a second review in June 2024, the CRA’s Second Reviewer found her ineligible based on insufficient evidence of qualifying income.
Shortly after the June 2024 decision, Ms. Sinclair’s 2019 and 2020 tax years were reassessed, showing self-employment income of $5,608 and $30,854, respectively—amounts that would have satisfied the $5,000 threshold. Ms. Sinclair sought judicial review, arguing that these reassessments demonstrated her eligibility and should be considered in evaluating her CRB claim.
Justice Sadrehashemi dismissed the application for judicial review, holding that post-dated tax reassessments cannot be considered on judicial review to evaluate the merits of an administrative decision. The Court found that this principle is well-established in Federal Court jurisprudence and that reassessments not before the decision maker at the time cannot be used to challenge their findings.
The Court further held that tax returns and reassessments are not conclusive proof that a taxpayer earned the income they self-reported. The Second Reviewer, although aware of Ms. Sinclair’s dispute regarding her self-employment income, properly informed her that reassessments would not eliminate the need for supporting evidence. The Second Reviewer provided multiple opportunities for Ms. Sinclair to submit additional documentation and was entitled to conclude, based on the evidence actually before her, that Ms. Sinclair had not demonstrated the required $5,000 in qualifying income. The Court found no basis to interfere with this determination and characterized the CRA’s process as reasonable and fair.