In late 2021, Tressa Mitchell found herself juggling doctor’s appointments for her sick mother when she received a call from the Canada Revenue Agency (CRA) regarding her eligibility for the Canada Emergency Response Benefit (CERB). Mitchell, who suffers from a lung condition, had taken time off from her job as a cashier in Saskatchewan due to the COVID-19 pandemic, like many other Canadians who relied on CERB during the crisis.
While the rollout of pandemic relief payments aimed to provide immediate assistance, the verification process proved to be less than perfect. The government’s subsequent efforts to recover funds from individuals deemed ineligible led to over 1,000 battles in Federal Court between claimants and the Canada Revenue Agency.
Upon examining numerous cases, it becomes apparent that many of these battles are fought by self-represented litigants, putting them at a disadvantage against the legal expertise of the federal government. However, against all odds, some self-represented litigants have emerged victorious. One such example is an Ontario hospitality worker who demonstrated that his unemployment was directly related to the pandemic by providing evidence of job interviews he attended just before COVID-19 hit.
Another successful case involved a laborer and web designer who submitted a police report as evidence that his tax and banking documents were stolen from Union Station in Toronto. He even managed to obtain $800 in costs from the CRA. Additionally, a retired individual from Quebec convinced a judge that he had been performing odd jobs as a landscaper to supplement his income after the CRA challenged his pre-pandemic earnings.
Tressa Mitchell, a stay-at-home mother with limited resources to hire a lawyer, also became engaged in a crash course in law after being ordered to repay $16,000 in CERB. Mitchell regrets answering the phone call from the CRA agent that day in 2021, as it came at a challenging time in her life. The agent demanded detailed information about Mitchell’s income and medical condition within a few weeks, but with her focus on her mother’s cancer diagnosis and her responsibilities as a mother of three, the deadlines slipped her mind. The CRA employee deemed her efforts insufficient and ordered her to repay thousands of dollars, effectively closing her case.
On the verge of tears, Mitchell inquired about her options. The only way forward was to seek a judicial review in the Federal Court of Canada. However, Mitchell quickly discovered the complexities of this process and the difficulties involved in navigating it independently. She struggled to complete all the necessary tasks. Mitchell finally filed her case in January 2022, and on June 16, the court ruled in her favor, ordering another review by a different CRA officer. The judge acknowledged that the previous tax agent had mischaracterized Mitchell’s evidence and wrongly concluded that she had voluntarily quit her job. Now, Mitchell anxiously awaits the CRA’s response, hoping she won’t have to repay the $16,000 she received in 2020.
Unfortunately, not everyone has been as fortunate as those who won their battles against the CRA. Many individuals feel unjustly pursued by the government. Judy Sjogren, a former nurse in her early 60s, relies on the Canada Pension Plan and the sale of her drawings to support herself. She lost her court fight after being ordered to repay $7,000 in CERB. Sjogren believes that the federal government is using the system to exploit people and expresses frustration that her lifelong work is being disregarded.
The majority of pandemic relief funds deemed unwarranted were disbursed to businesses, not individuals. According to the Auditor General’s report in 2022, pandemic supports for individuals and businesses amounted to $211 billion. While $4.6 billion went to ineligible individuals, over $15 billion went to businesses that ultimately did not experience a significant decline in revenue to qualify for the Canada Emergency Wage Subsidy. The auditor’s report concluded that both the Canada Revenue Agency and Employment and Social Development Canada did not efficiently manage the selected COVID-19 programs, as significant amounts were paid to ineligible recipients. The report also warned of the likelihood of significant unrecoverable amounts.
The CRA has provided information that 1,046 individuals have filed court challenges related to pandemic benefits, including cases that have been closed and those still pending. Unsuccessful cases include that of a Toronto woman who missed the pre-pandemic income requirement by a mere $7, a former Toronto Uber driver whose inability to drive was not pandemic-related but due to a disability, and multiple Airbnb operators who were deemed to earn rental income instead of self-employment income.
Judy Sjogren injured herself over a decade ago and has been on disability leave since then. However, she is still fighting with the Saskatchewan government over her classification as a disabled person. When she applied for pandemic benefits, Sjogren believed she met the eligibility criteria based on her pre-pandemic self-employment income. However, the CRA disagreed and demanded she repay over $7,000. Unable to find or afford legal representation, Sjogren attempted a judicial review on her own. Although her application was denied, the judge noted that the review process sends cases back for redetermination instead of reversing decisions altogether, which may come as a surprise to those without legal training.
Since January 2023, Sjogren has received a bill from the CRA for $7,200, which she cannot afford to pay. She also mentions her health issues, including lung complications and her struggles with the legal system without any assistance or support from the government she has contributed to for years.
Stephen Pelland from Surrey, B.C., is another example. The CRA is seeking repayment of over $25,000 he received from CERB after his scrap metal business, which started before the pandemic, collapsed along with his income. Pelland, a former addict currently in recovery, filed a judicial review in November 2022 and is awaiting a hearing. Despite his attempts to hire legal representation, he has been unsuccessful in finding anyone willing to take his case.
Jennifer Leitch, a law professor and executive director of the National Self-Represented Litigants Project, was previously unaware of the numerous battles individuals were facing against the CRA over pandemic benefit clawbacks. However, she is pleased to see some individuals prevail in these profoundly unequal contests. Leitch acknowledges that outcomes for self-represented litigants are usually unfavorable. The inequality inherent in these cases may create a perception of a two-tiered legal system, discouraging people from seeking justice through the courts.
It is crucial to address these disparities and ensure that everyone, regardless of their financial resources, has equal access to legal representation and a fair chance in court. This situation raises concerns about the effectiveness and fairness of the judicial review system and the need for comprehensive reform to overcome the challenges faced by self-represented litigants in complex legal battles against the government.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
