(Montreal) The Public Service Alliance of Canada hopes to inundate Revenue Canada with notices of dispute, because compensation paid for failures in the Phoenix pay system is considered taxable.
Posted at 1:52 p.m.
The main union of federal public servants invites its members to file such notices of dispute individually with the Canada Revenue Agency, having failed as an organization to convince the federal authorities not to tax these amounts.
In 2020, the Government of Canada and the PSAC signed a general compensation agreement for its 165,000 members, because of failures in the Phoenix pay system.
This provided for the payment of $2,500 for the stress and suffering suffered. The sum was available in installments of $1,000 for 2016-2017, then $500 for each of the subsequent years until 2019-2020.
However, the Alliance later learned that the amount would be considered taxable, even though it is not wage income, but compensation for stress and suffering. She tried, in vain, to convince the authorities to change their minds.
Today, it therefore invites its members to file individual notices of contestation.