Wednesday, June 17, 2026
ADVT 
National

Union fighting tax ruling on Phoenix damages

Darpan News Desk The Canadian Press, 14 Jan, 2021 06:20 PM
  • Union fighting tax ruling on Phoenix damages

The country's biggest civil service union says it will contest a decision that would see government workers pay tax on money they receive as part of a settlement reached over long-standing problems with their paycheques.

The federal government and the Public Service Alliance of Canada (PSAC) reached a deal last summer to compensate the union's 140,000 members affected by failures in the Phoenix pay system.

The agreement would see workers paid up to $2,500 in general damages for four years of pay problems including delays, overpayments, underpayments or lack of pay.

A letter provided to PSAC by the Treasury Board Secretariat says the Canada Revenue Agency has concluded those payments are taxable.

The union says the letter is not a formal tax ruling and will dispute it on the basis that the CRA has determined that other specific damages in the settlement are non-taxable.

Treasury Board also announced Thursday that it has launched a new claims process to compensate current and former employees who experienced severe personal or financial impacts as a result of issues with the Phoenix pay system.

The new process was called for as part of a separate agreement reached in June 2019 with other unions to compensate approximately 121,000 current and 25,000 former employees.

MORE National ARTICLES

VIRUS DIARY: In Beijing, finally, a tentative spring blooms

BEIJING — The coronavirus came first in the depths of winter. As with so many places afterward, the change seeped in gradually.

VIRUS DIARY: In Beijing, finally, a tentative spring blooms

Canadian companies promise 30,000 ventilators on way, Trudeau says

OTTAWA — Prime Minister Justin Trudeau says Canada has ordered 30,000 new ventilators from Canadian companies but hopes that will end up being far more than this country will actually need.

Canadian companies promise 30,000 ventilators on way, Trudeau says

Luck, timing, lessons from Ontario, Quebec helped B.C. slow COVID-19: doctor

VICTORIA — British Columbia's top doctor is crediting luck and timing for the province's early restrictive measures that helped slow down the spread of COVID-19 in the community.

Luck, timing, lessons from Ontario, Quebec helped B.C. slow COVID-19: doctor

Scheer calls for more oversight of government's COVID-19 response

OTTAWA — Conservative Leader Andrew Scheer is calling for the Liberals to be more transparent about their response to the COVID-19 crisis.

Scheer calls for more oversight of government's COVID-19 response

3M pushes back on Trump administration order to stop sending N95 masks to Canada

WASHINGTON — One of the world's largest U.S.-based makers of consumer products says it has been told by the White House to stop exporting medical-grade face masks to the Canadian market.

3M pushes back on Trump administration order to stop sending N95 masks to Canada

Researchers look at humidity as a weapon in the fight against airborne viruses

The ongoing fight against the COVID-19 pandemic could get a boost if Canadians paid more attention to the relative humidity levels in public and private spaces, according to a growing body of international research.

Researchers look at humidity as a weapon in the fight against airborne viruses