Akouz, a self-employed housekeeper, saw a decrease in income during the COVID-19 pandemic and received the Canada Recovery Benefit (CRB).
The Canada Revenue Agency (CRA) later ruled her ineligible for CRB due to not meeting the $5,000 net independent income requirement in 2019, 2020, or the 12 months preceding her application. Her 2019 income was initially reported as $4,852 but later amended to $5,711.
Akouz contested the decision, arguing it was unreasonable since her amended 2019 tax return showed income over $5,000.
Legal Issues:
CRB Eligibility and Income Calculation: Whether the CRA's decision considering the amended tax return was reasonable.
Procedural Fairness: Assessment of the CRA's handling of the amended tax return and subsequent income reassessment.
Judgment:
Judge: Vanessa Rochester
Decision: Judicial review request rejected.
Reasoning:
The Court found the CRA's decision reasonable. Akouz's income for 2019, even after amendment, was not convincingly over the $5,000 threshold.
The Court did not accept the retroactive tax amendment for CRB eligibility, in line with principles against retroactive tax planning.
Costs: Akouz was ordered to pay $500 in costs.
Conclusion:
The Federal Court upheld the CRA's decision, emphasizing the necessity for accurate and timely income reporting for benefit eligibility. The case underscores the limitations of retroactive tax adjustments to meet benefit criteria.
