First Nations member entitled to IRB benefits despite lack of written documentation

For the purpose of calculating income replacement benefits, there is a difference between “poor record keepers,” who fail to document income properly, and a First Nations person working at a store on a reserve, where there is no legal obligation to pay taxes or keep written records at all, an Ontario arbitrator has found.
In Dawn Smith and Economical Insurance Company, Smith, a member of the First Nations, was working at a convenience store on a First Nations reserve when she was injured in a car accident. Following her accident, she made a claim for income replacement benefits from her insurer, Economical Mutual Insurance Company.
Economical initially paid her income replacement benefits, but later terminated her benefits on the grounds that she did not provide the insurer financial information and documentation requested of her.
Smith testified before an Ontario arbitrator she was at all times an employee and manager of a convenience store, working for the storeowner.
Economical, on the other hand, said her employment status was uncertain for several reasons. The main reason was a lack of documentation about her employment status and income.
Members of the First Nations are not required to pay income tax on income generated on a First Nations reserve, the arbitrator noted. All sales, purchases and salaries paid to employees took place on a cash basis.
Smith produced timesheets in support of her claim that she was an employee. She claimed at least $750 per week as a manager, thus qualifying her for an IRB benefit of $400 per week.
The arbitrator said the case relied almost completely on the credibility of the witnesses, and sided with Smith. The arbitrator noted Smith had agreed to cooperate with the insurer in two medical examinations following her car accident; allowed the insurer access to multiple witnesses supporting her claim; and presented the insurer with what documentation she did have  (two of her store’s time sheets).
“In the present instance, I also distinguish between ‘poor record keepers,’ who have perhaps conveniently neglected or forgotten to keep accounts of their tips and other income, and those like Smith, who are under no obligation whatsoever to pay taxes or keep records at all,” Financial Services Commission of Ontario (FSCO) arbitrator Edward Lee wrote.