The Federal Court has dismissed an application for judicial review in a case involving the denial of the Canada Emergency Response Benefit (CERB) to an applicant, T.A., by the Canada Revenue Agency (CRA).
The court found that the CRA’s decision to deem T.A. ineligible for CERB due to insufficient evidence of a COVID-19-related work stoppage was reasonable and did not warrant judicial intervention.
Case background and CERB eligibility requirements
The CERB was introduced in 2020 to provide financial relief to workers who lost income due to the COVID-19 pandemic. To qualify, applicants were required to stop working for at least 14 consecutive days for reasons directly related to COVID-19. The CRA administers CERB eligibility determinations under the Canada Emergency Response Benefit Act.
T.A., a CRA employee, applied for CERB for the period of Aug. 30, 2020, to Sept. 26, 2020, claiming a work stoppage due to a medical condition related to COVID-19. According to the facts of the case, T.A. worked remotely on Aug. 31, 2020, for part of the day before taking sick leave without pay until September 13, 2020. T.A. claimed the leave was due to side effects from medication prescribed as a precaution against COVID-19. However, T.A. could not provide specific details about the medication or its intended purpose related to COVID-19.
CRA’s review and findings
The CRA conducted multiple reviews of T.A.’s application and ultimately concluded that T.A. did not meet the CERB eligibility criteria. The CRA found that T.A.’s medical documentation was insufficient to establish that his leave was due to COVID-19. Furthermore, the CRA determined that T.A. continued to earn employment income during the period, which exceeded the $1,000 limit specified in the CERB Act.
In correspondence with the CRA, T.A. provided a doctor’s note dated Sept. 4, 2020, indicating a return-to-work date of Sept. 14, 2020. However, the note did not reference COVID-19 or detail why the medication was prescribed. The CRA concluded that T.A. had failed to demonstrate a direct link between his work stoppage and COVID-19, as required by law.
Court’s analysis and ruling
The Federal Court reviewed whether the CRA’s decision met the standard of reasonableness, as established in Canadian administrative law. It found the CRA’s decision to be “rational, transparent, and justified,” noting that the agency had appropriately assessed the available evidence and followed a logical chain of analysis.
The court emphasized that the onus was on T.A. to demonstrate his eligibility for CERB by providing sufficient documentation to show that his work stoppage was COVID-19-related. The ruling highlighted that the CRA had exercised appropriate diligence in reviewing T.A.’s application and had reasonably concluded that the evidence did not support his claim.
In rejecting T.A.’s application for judicial review, the court noted that the CRA was within its authority to dismiss the application based on the lack of clear COVID-19-related documentation. The judgment stated, “The CRA Agent’s reasons were intelligible, rational, and justified. There are no errors warranting judicial intervention.”
The application was dismissed without costs. This decision may serve as a cautionary example for those seeking pandemic-related benefits to ensure they meet all eligibility requirements and provide adequate supporting documentation.
