Phoenix Damages Taxable: UTE Members Urged to File Individual Tax Appeals

March 3, 2022

Sisters, Brothers and Friends,

For several months now, I have been following up with PSAC to find out if they had reached an agreement with CRA with regard to the taxability of the Phoenix general damages compensation.  Treasury Board treated Phoenix general damages as taxable income – deducting tax from the payment UTE members received – but we maintain that these damages should be tax-free just like other damages agreements.

Last week during a National Board of Directors (NBoD) meeting, I followed up once again and PSAC advised us that they were unable to reach an agreement with CRA, and that time has run out to resolve the issue proactively.  We are encouraging our members to file individual tax appeals (Notice of Objection) so that we can generate tens of thousands of requests in order to apply pressure on the government to review the tax treatment of the Phoenix general damages for all UTE members rather than ruling on thousands of individual tax appeals.

PSAC recently posted a message on its website, with instructions and wording for members to file individual appeals. Once members have filed their 2021 tax returns and received their “Notice of Assessment” from CRA, they can object to the taxability of the Phoenix damages by completing a form T400A and mailing it to:

Chief of Appeals
Appeals Intake Centre
Post Office Box 2006, Station Main
Newmarket ON L3Y 0E9

Filing deadlines:

Please note that the time limit for filing an objection is the latest of the following two dates:

  • one year after the date of the return's filing due date for the year; or
  • 90 days after the day the notice of assessment or determination was sent.

FOR MEMBERS RESIDING IN QUEBEC

In addition, for our members residing in Quebec, you must also follow the same process and file a Notice of Objection with Revenu Québec after receiving your “Notice of Assessment” from Revenu Québec by completing this form and mailing it to:

Revenu Québec
3800, rue de Marly
C. P. 25025, succursale Terminus
Québec (Québec) G1A 0B8

Filing deadlines:

The filing deadlines are the same with Revenu Québec as those applied by the Canada Revenue Agency.

We understand that everyone’s individual circumstances may vary, and UTE does not provide legal advice on individual tax appeals.  We encourage you to consult a professional tax advisor if you have specific questions about filing your income taxes.

In solidarity,

Marc Brière's signature

Marc Brière
National President
Union of Taxation Employees