It has been a little more than a year since Osler first became involved with a pro bono program helping people of limited means challenge the Canada Revenue Agency (CRA) on Canada Emergency Response Benefit (CERB) and Canada Recovery Benefits (CRB) repayment demands. Since then, approximately 50 Osler lawyers have become involved with the program, assessing at least 100 matters, and executing 40 retainer letters.
During COVID-19, the federal government issued CERB payments to support individuals whose employment was negatively affected by the pandemic. It also issued CRB to individuals who experienced a reduction in income.
Within the past couple of years, the CRA began a process to review beneficiaries’ eligibility for the CERB and CRB. Many recipients have been asked to repay their benefits because, according to the government, they were not eligible to receive them. CRA has taken unilateral collection action by withholding other federal benefits.
Disputes associate Madeleine Worndl was successful in helping a taxpayer have her eligibility for her CERB and CRB benefits confirmed by CRA. When Madeleine took on the client through Pro Bono Ontario, it was in the early stages of a judicial review process of a decision made by the CRA that the taxpayer was ineligible for the CERB and CRB payments she had received during the pandemic.
Madeleine’s initial work involved preparing materials for the judicial review in the Federal Court. Ultimately, the judicial review resulted in a fresh review by the CRA of the taxpayer’s eligibility for the benefits. The next step involved working with the taxpayer to understand her story and advocate on her behalf through discussions with the CRA and preparing written submissions with supporting documentation. Following the fresh review, the CRA found the taxpayer eligible for both the CERB and CRB.
“It was very gratifying to have worked on this matter that ultimately resulted in the CRA making a new determination that my client was eligible for the benefits received during the pandemic and was no longer required to repay a significant sum to the CRA which would have presented significant hardship for her,” says Madeleine.
“Working on this — and other pro bono matters — has given me the opportunity to develop my legal skills by working closely with individual clients, explaining technical legal concepts in clear, understandable language in client communications, and working with clients to gather relevant evidence to support their case.”
Following on the heels of helping an elderly musician receive CRA confirmation of an entitlement to $26,000 in benefits, Disputes associate Sierra Farr supported a woman who was asked to repay $39,000. Sierra’s client ran a business where she housed international students and provided a variety of services for them, including transportation. Her income for tax purposes was usually split between rental and self-employment earnings. However, there had been an accounting mix up on her most recent tax form which showed her as having 100% rental income. CRA initially said she was ineligible for any COVID-19 benefits.
Sierra prepared the materials for the judicial review in the Federal Court, and this too resulted in the CRA reconsidering her client’s benefits eligibility and confirmed her eligibility for the $39,000 in benefits.
“For someone who doesn’t have a lot of money, being asked to pay back $39,000 would result in tremendous hardship,” says Sierra. ‘We were certainly pleased with the outcome.”
“Participating in pro bono cases makes me feel good about what I do for a living. These cases also give me an opportunity to work on files on my own and to have full responsibility for every step involved.”
For Disputes associate Graeme Rotrand, who is the senior associate in charge of Osler’s CERB/CRB pro bono work, participating in demand payment cases has given him the opportunity to develop his argumentative skills. “I have already argued a judicial review on the merits in Federal Court,” he says.
That case is currently under reserve.
Osler is partnering in the CERB/CRB demand repayment program with Pro Bono Ontario and the Income Security Advocacy Centre. Blake, Cassels & Graydon LLP, Gowling WLG and Fasken have also joined the program.
