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CRA calls Phoenix damages ‘taxable’ after Treasury Board refuses to co-operate

Phoenix compensationPSAC is urging members to share their outrage over the taxing of Phoenix damages with Treasury Board minister Jean-Yves Duclos and the Prime Minister.

In the latest chapter of the saga, CRA rejected a PSAC request to review the tax status of damages paid to PSAC members under its settlement with Treasury Board over the disastrous Phoenix pay system.

The agency told the union Treasury Board never supplied the agreed statement of facts that lays out the wide range of pain and suffering PSAC members experienced due to the pay system’s failures.

Without the agreed statement of facts, CRA insists the Phoenix damages agreement is not compensation for pain and suffering (which is not taxable) but rather compensation under the collective agreement which is taxable.

PSAC National President Chris Aylward said Treasury Board is acting out of spite.

“It’s clear they’re still angry that PSAC forced them to deliver a better deal for our members,” he said.

Aylward said the union would pursue every legal avenue to appeal CRA’s decision and push Treasury Board to expedite the availability of the claims process for all former members and retirees.

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