The CERB was the first pandemic support widely available to individuals, and it lasted until the fall of 2020, when it was replaced by the Canada Recovery Benefit . Eligible individuals could receive $500 per week, for a maximum of 28 weeks, provided they earned at least $5,000 of net income in the prior year and earned less than $1,000 during the period in which they claimed the CERB.about a Cambridge, Ont.
In July 2020, the taxpayer learned a “hold” had been placed on his account that prevented him from applying for a fifth CERB payment for the period of July 5 to Aug. 1, 2020. After a number of calls with the CRA, a Canada Emergency Benefit Validation agent informed him the CRA would require proof of the tutoring income for him to continue collecting the CERB.
In November 2020, the taxpayer received a letter from the CRA stating he was not eligible to receive the CERB because he did not satisfy the $5,000 income requirement. The following month, the taxpayer requested a review of the CRA’s decision, arguing that the CERB Act and theregarding the validation of CERB applications were “ambiguous.
The case went to the Federal Court last fall where the judge had to decide whether the CRA’s decision to deny his CERB claim was “reasonable.” To do so, the court examines the reasons given by the CRA and determines whether the decision “ is based on an internally coherent and rational chain of analysis” and is “justified in relation to the facts and law that constrain the decision maker.” The burden, however, is on the taxpayer to show that the CRA’s decision was unreasonable.