Background
Juan Pablo Castillo Lleras received the Canada Emergency Response Benefit (CERB) for periods between April and June 2020 and the Canada Recovery Benefit (CRB) for periods between November 2020 and June 2021. Eligibility depended in part on his income and whether COVID-19 caused him to stop working, have his hours reduced, or suffer the required reduction in average weekly income.
Following a second review, a Canada Revenue Agency validation agent found him ineligible for both benefits. The agent concluded that he earned more than the permitted amount during the relevant CERB period and had not stopped working or reduced his hours for COVID-19-related reasons. For the CRB, the agent found that the evidence did not establish the required 50% reduction in average weekly income. Lleras sought judicial review, alleging both unreasonableness and procedural unfairness.
The Court’s Holding
The Federal Court dismissed the application. It held that the process was fair because the CRA agent discussed deficiencies in the available information, identified documents that could assist Lleras, and gave him a deadline for further submissions. Lleras neither advised the agent that he was having difficulty obtaining documents nor requested an extension. Moreover, the four Records of Employment he characterized as missing had already been submitted and were considered.
The Court also held that the decision was reasonable. The available income information supported the agent’s CERB and CRB determinations, and Lleras did not establish that the agent overlooked or misunderstood his Records of Employment or bank records. Given his failure to provide the additional information requested, the agent reasonably concluded that the record did not show CERB eligibility or the income reduction required for CRB eligibility. The agent’s calculations were transparent and intelligible.
Key Takeaways
- A benefits reviewer may decide a claim on the available record when the claimant does not provide requested information by the deadline or seek an extension.
- Procedural fairness was satisfied because Lleras knew the evidentiary deficiencies and had a fair opportunity to address them.
- An applicant challenging a CRA benefits determination must identify a material error or overlooked evidence; merely resubmitting records that were already considered is insufficient.
Why It Matters
The decision illustrates the evidentiary burden facing applicants who seek judicial review of CERB and CRB eligibility determinations. Courts will not reweigh the record where the CRA’s calculations and reasoning are coherent, transparent, and supported by the information the claimant supplied.
It also underscores the importance of responding to a reviewer’s requests, communicating difficulties before a deadline expires, and supplying records that clearly establish each statutory eligibility requirement.