After months of waiting, the Canada Revenue Agency (CRA) has rejected our request to review the taxability of Phoenix damages. This is directly due to Treasury Board’s refusal to provide CRA with a joint statement of facts which corrects CRA’s understanding of the purpose of our damages settlement agreement.
In an April 27 letter from the CRA, the Agency states:
Now that current PSAC members will be receiving Phoenix general damages on March 3, retired and former PSAC members may be wondering when they will receive their portion.
PSAC has been informed that the federal government plans to move forward with taxing Phoenix general damages on March 3rd and that they will not provide the Canada Revenue Agency (CRA) with information they requested in order to revisit their initial opinion on taxability.
PSAC has been informed that the federal government plans to move forward with taxing Phoenix general damages on March 3rd and that they will not provide the Canada Revenue Agency (CRA) with information they requested in order to revisit their initial opinion on taxability.
The Liberal government has shamelessly chosen the 5th anniversary of the Phoenix pay system disaster to short-change thousands of PSAC members on their compensation for years of pay problems.
Even though PSAC is in the process of working with CRA to review the taxability of Phoenix damages, the federal government has confirmed that it intends to ignore these efforts and issue the up to $2,500 for our members, on March 3 – with taxes deducted. Treasury board provided no explanation for their actions.
Treasury Board has provided PSAC with a letter from CRA setting out its preliminary view that the general damages in the Phoenix settlement agreement are taxable. This letter, which was prepared at Treasury Board’s request and without PSAC’s input, is not a formal tax ruling and PSAC is contesting this conclusion.
Sisters and Brothers,
The PSAC and Treasury Board officially signed the agreement regarding the damages caused by the Phoenix pay system yesterday and the full text is now available.
For more details, see the links below.
I am pleased to announce that the Union of Taxation Employees - Public Service Alliance of Canada (UTE-PSAC) and the Canada Revenue Agency (CRA) signed an agreement that agrees to implement, in the same manner and within the same timeframes, the terms of the Memorandum of Agreement (MoA) with regard to Damages Caused by the Phoenix Pay System, agreed to by the Treasury Board of Canada and the Public Service Alliance of Canada.
PSAC President Chris Aylward issued the following statement:
After two years of negotiations, the Liberal government has offered only 1.25 days of leave per year, for 4 years, as general compensation to every member who has fallen under the disastrous Phoenix system. PSAC could not agree to this meagre proposal.
Hi,
Today, I would like to talk to you about a subject that is not always popular but is still very important: your union dues.
As you know, the Phoenix payroll system has created and still creates a lot of problems for many of you. Since April 2016, when the CRA was forced to join this payroll system, your union has focused on helping its members resolve problematic situations as quickly as possible.
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