Executive Summary: Key Legal and Evidentiary Issues

• The applicant challenged the CRA's denial of COVID-19 relief benefits based on insufficient income documentation.

• CRA determined the applicant failed to meet the $5,000 income threshold required for eligibility.

• The applicant provided invoices and bank statements, but these lacked sufficient detail and verification.

• CRA reviewers requested additional supporting documents which were either not provided or inadequate.

• The Court found the CRA’s decision to be procedurally fair and within the range of reasonableness.

• Costs of $500 were awarded to the respondent, with the judicial review application dismissed.

Facts and outcome of the case

Saber Kazemi, a self-employed truck driver, sought judicial review of a decision by the Canada Revenue Agency (CRA) denying him access to the Canada Recovery Benefit (CRB) and the Canada Worker Lockdown Benefit (CWLB). These benefits were pandemic-era support programs that required claimants to have earned at least $5,000 in employment or net self-employment income either in 2019, 2020, or within the 12 months before applying.

Mr. Kazemi applied for and initially received benefits but was later flagged by the CRA. After failing to submit adequate proof of income during follow-ups, the CRA found him ineligible. He submitted documents such as bank statements, invoices to a company he owned (P2P Express Logistics Inc), and Notices of Assessment, but these were deemed insufficient. The CRA found that the invoices lacked key details such as service descriptions, dates, and recipient names, and the bank transfers could not be confirmed as payments for the services listed. Mr. Kazemi also failed to provide contracts, books, or a list of business expenses. During the review, he acknowledged he did not have the necessary documents to support the amounts reported on his tax returns.

The Court assessed whether the CRA’s second-level review, led by a CRA officer, was procedurally fair and reasonable. It held that Mr. Kazemi had multiple opportunities to submit supporting documents and was informed about what was required. The Court found no breach of procedural fairness and ruled that the CRA’s decision was reasonable, particularly because the eligibility review was document-driven and the applicant admitted he could not provide the required documentation.

Ultimately, the Federal Court dismissed the application for judicial review. Costs in the amount of $500 were awarded to the Attorney General of Canada.