Executive Summary: Key Legal and Evidentiary Issues

• The applicant’s eligibility for CERB and CRB hinged on proving a minimum of $5,000 in self-employment income.

• CRA found that the applicant’s bank statements lacked sufficient detail to verify income source or quantum.

• No invoices, receipts, or tax filings supported the claim of self-employment earnings.

• The Court upheld CRA’s rejection based on the reasonableness standard under administrative law principles.

• Additional documents submitted with the judicial review were deemed inadmissible.

• The Court ruled there was no procedural unfairness as the applicant was informed of the documentation requirements.

Facts and outcome of the case

Jerry Browne, a medically retired individual receiving disability and old age pensions, sought judicial review of a Canada Revenue Agency (CRA) decision that deemed him ineligible for the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB). During the COVID-19 pandemic, Mr. Browne claimed to have earned supplemental income through informal electronics repair work, averaging $100 per week, mostly paid in cash or by e-transfer. He received CERB and CRB benefits between March 2020 and June 2021.

The CRA requested documentation to verify that Mr. Browne met the income eligibility threshold of $5,000. In response, Mr. Browne submitted an e-transfer listing totaling $1,895, a business card, and later, bank deposit statements from two accounts with deposits totaling $5,705. However, the deposits lacked details identifying the source of income, and there were no invoices, receipts, or declared self-employment income on his tax returns.

A first CRA officer reviewed the materials and found them insufficient. After an unsuccessful attempt to reach Mr. Browne by phone, the officer issued a decision rejecting his eligibility. Mr. Browne requested a second review and provided additional bank documents and summaries, but again failed to include source-verifying documentation. The second CRA officer upheld the initial decision, citing a lack of evidence proving that the income was derived from self-employment.

On judicial review, the Federal Court held that the CRA’s decision was reasonable and procedurally fair. The Court emphasized that the applicant had been clearly advised of the documentation needed to substantiate his income and was given opportunities to provide it. The Court also ruled that additional documents included in Mr. Browne’s court submissions were inadmissible because they had not been before the CRA decision-maker.

Ultimately, the Court dismissed the application for judicial review. No costs or damages were awarded to either party. The CRA, represented by counsel from the Attorney General of Canada’s office, prevailed in the case. Mr. Browne represented himself.