Court found contradictory employer records created 'insurmountable credibility problem'
A family-owned restaurant's sloppy employment record-keeping left a former worker unable to prove his income when the Canada Revenue Agency came calling, according to a Federal Court decision that highlights the real-world consequences of inadequate payroll documentation.
Justice William Pentney dismissed George Hart's judicial review application on February 17, 2026, upholding the CRA's finding that Hart failed to establish he earned at least $5,000 in employment income to qualify for the Canada Recovery Benefit. The case centered not on whether Hart actually worked at the White Hart Pub and Grill — owned by his parents — but on whether the employer's contradictory and incomplete records could verify his earnings.
The court found that multiple T4 statements showing different amounts, Records of Employment that contradicted employer letters, and a complete absence of paystubs or timesheets created an insurmountable credibility problem for the worker's claim.
Hart submitted two different T4 statements for 2020 showing earnings of $7,567.12 and $7,500, while his initial tax assessment reported T4 earnings of $12,760. For 2019, his claimed earnings ranged from $21,880 to $55,730 across multiple tax reassessments, with T4 statements eventually settling on $26,850.
The employer documentation problems extended beyond inconsistent dollar amounts. The...
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