Taxability of Phoenix damages: Victory for members across the country

Taxability of Phoenix damages: Victory for members across the country


February 23, 2024

In a victory for PSAC members impacted by the Phoenix pay fiasco, PSAC has secured an agreement with the Canada Revenue Agency to treat up to $1,500 of the Phoenix general damages compensation members received in 2021 as non-taxable.  

Under the Phoenix damages agreement negotiated by PSAC in 2020, up to $2,500 in damages was awarded to members who suffered under the Phoenix pay system from 2016 to 2020. PSAC has long stressed that these damages should not have been taxed, and after lengthy deliberations and a Reference filed with the Tax Court of Canada, Canada Revenue Agency (CRA) has agreed that a majority of the damages – those specifically allocated to cover the pain and suffering experienced by workers – are not taxable. Revenu Québec is not a party to the settlement reached with CRA, but has already begun treating other Phoenix taxability objections similarly.  

This decision means that members who file or have already filed a notice of objection regarding the taxation of Phoenix damages will be reimbursed the taxes that should not have been deducted from their damages payment in 2021. In the test case that PSAC brought to the Tax Court, Canada Revenue Agency provided a tax reimbursement of $492, but the amount will vary for individual members based on their location, income, and whether they received the full or partial Phoenix damages payment.

Over the past two years, PSAC has encouraged members to file a notice of objection, or an extension to file a notice of objection. If you did so already, no other action is required at this time.  

All members who have not already filed a notice of objection must file an extension request and notice of objection by April 30, 2024 to be eligible for their Phoenix general damages compensation to be deemed non-taxable.  Please share this information with your current colleagues as well as those who have retired since receiving the payment.

Please complete the steps outlined below as soon as possible to avoid missing the deadline. 

How to be reimbursed taxes on Phoenix damages 

Residents outside of Quebec 

If you have not filed an objection with CRA regarding the tax treatment of any Phoenix damages you’ve received, you can still file a request for an extension of time to object and an individual objection regarding the taxability of the $1,500 portion of Phoenix damages for pain and suffering in your 2021 taxation year.  

Should you instead wish to challenge the taxation of the remaining $1,000 for the late implementation of the 2014 collective agreement, you should seek independent tax advice to move forward.  

You do not need to take any action if the following circumstances apply:  

  • You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages prior to April 30, 2023; or 
  • You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages and a request for an extension to object after April 30, 2023.  

If the above circumstances do not apply to you, please follow the following steps as soon as possible and no later than April 30, 2024, to preserve your rights:  

Option 1: If you have subscribed to CRA My Account for Individuals, you can choose to file your objection online by following the two following steps: 

Step 1: select the “File a Formal Dispute” option on your personal CRA portal, where you can fill the appropriate information relating to your objection; 

Step 2: once your formal dispute is recorded, the second step is to use the “Submit Documents” option to upload an extension request to accompany your objection.  

DETAILED INSTRUCTIONS CAN BE FOUND HERE

Option 2: Alternatively, if you have not subscribed to CRA My Account for Individuals, you may choose to submit your objection by mail or fax. 

Step 1: To do so, fill out a notice of objection and an extension request. Pre-populated forms and detailed instructions can be found here.  

Step 2: Once the forms are printed and filled, you can choose to mail or fax them to the following address or fax numbers. We recommend you send your materials by registered mail to ensure they are received: 

Appeals Intake Centre 
Chief of Appeals 
Appeals Intake Centre 
1050 Notre Dame Avenue 
Sudbury ON, P3A 5C1 

Fax numbers: 
705-670-6649 or 1-866-443-4955 (NL to ON) 
604-587-2672 or 1-866-489-6832 (MB to BC and Territories) 

Quebec residents: How to file a provincial and federal objection 

Members who are Quebec tax residents must, in addition to their federal objection described above, also file a second objection with Revenu Québec – that is, Quebec members must file two separate objections, one with CRA and one with Revenu Québec.  

If you have not filed an objection with Revenu Québec regarding the tax treatment of any damages you received, PSAC urges you to file: a request for an extension of time to object and an individual objection regarding the taxability of the $1,500 portion of Phoenix damages in your 2021 taxation year.  

Should you instead wish to challenge the taxation of the remaining $1,000 for late implementation of the 2014 collective agreement, you should seek independent tax advice to move forward. 

Residents of Quebec do not need to take any action with Revenu Québec if the following circumstances apply:  

  • You filed an individual objection with Revenu Québec to your 2021 tax assessment about the taxability of your Phoenix damages prior to April 30, 2023; or 
  • You filed an individual objection with Revenu Québec to your 2021 tax assessment about the taxability of your Phoenix damages and a request for an extension to object after April 30, 2023.  

If the above circumstances do not apply to you, please follow the following steps as soon as possible and no later than April 30, 2024, to preserve your rights: 

Unlike CRA, Revenu Québec does not accept online objections. You must choose between mailing or faxing your objection. To do so, you must fill out a notice of objection and an extension request.  

PRE-POPULATED FORMS AND DETAILED INSTRUCTIONS CAN BE FOUND HERE

Once the forms are printed and filled, you can choose to mail or fax them to the following address or fax numbers. We recommend you send your materials by registered mail to ensure they are received: 

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

Fax numbers: 
418-577-5254 or 1-866-374-7286 

Please note that Revenu Québec is not a party to the settlement reached with CRA, and did not commit to offer the same treatment to members who file valid notices of objection regarding the taxation of the Phoenix damages. However, Revenu Québec has already begun treating other Phoenix taxability objections similarly.

 

New PSAC 2024 Calendars Available Now

New PSAC 2024 Calendars Available Now

Happy New Years to all of our 00013 members.

We now have PSAC 2024 calendars available for pickup at 25 St. Clair. Please speak to a rep on your floor or email thomas.mcinnis@00013ute.org. I’m available mid week (Tuesdays and Wednesdays) to provide a calendar. One per member.

In addition, union contact information will be posted by the health and safety boards.

As always, please feel free to contact us if you have any queries.

In solidarity,

UTE Local 00013

Retroactive Salary Payment

Retroactive Salary Payment

Hello Sisters, Brothers and Friends,

This is to inform you that the Canada Revenue Agency (CRA) has confirmed that the retroactive salary payment will be processed on the August 30th pay for most UTE members, i.e. where there is no need for manual intervention by a Compensation agent.

Retroactive payments will cover the period from November 1, 2021 to July 5, 2023.

We have yet to receive confirmation of when the lump-sum payment will be paid to members.

We will keep you informed of any new developments as they become available.

In Solidarity,

Marc Brière
National President
Union of Taxation Employees

The New Collective Agreement is Signed

The New Collective Agreement is Signed


June 27, 2023

We are pleased to announce that the Public Service Alliance of Canada – Union of Taxation Employees (PSAC/UTE) and the Canada Revenue Agency (CRA) signed a new collective agreement this morning in Ottawa for approximately 37,000 employees working at CRA and being represented by the PSAC-UTE.

The new collective agreement is now in effect. It applies from November 1, 2021, to October 31, 2025, inclusively. The CRA has a maximum of 180 days from today to implement the provisions of the collective agreement, which includes the adjustment of the employees’ wages and paying out the retroactive and lump sum payments.

The Agency committed to keeping the union updated on a regular basis as to the progress of getting union members paid out.

Once again, we want to thank each and every one of you, our members, for your ongoing support to your bargaining team and your union.

If you have any questions about the new collective agreement, please speak with one of your local union representatives.


UTE members ratify new agreement with Canada Revenue Agency

UTE members ratify new agreement with Canada Revenue Agency


June 16, 2023

Members of the Union of Taxation Employees, a Component of the PSAC, working at the Canada Revenue Agency, have voted overwhelmingly to ratify their new tentative agreement, with 88% of ballots cast in favour of the new contract.
 
UTE members held strong with other bargaining units of the PSAC during one of the largest national strikes in Canada’s history, securing fair wages that close the gap with inflation, the strongest remote work language in the country, better job security, and safer and more inclusive workplaces. In addition, even when the other bargaining units reached a tentative agreement and returned to work, UTE members remained on the picket lines for three additional days to ensure that we achieved at least the same improvements agreed to at the other tables, and achieved even further improvements on vacation leave, shift premiums and contracting out.
 
The four-year collective agreement for over 35,000 PSAC-UTE members expires October 31, 2025.

Highlights of the agreement
 
In the weeks to come, the bargaining agent, PSAC, along with UTE representatives will meet with CRA representatives shortly to sign the new collective agreement. With the exception of monetary provisions, which are retroactive, new contract terms come into effect on the date of signing.
 
The employer has 180 days from the signing of the contract to implement wage increases, wage adjustments and allowances. If CRA is unable to meet this deadline, additional amounts up to $200 will be payable if the outstanding amount is more than $500 owed.
 
UTE will update members immediately when the new contract is signed. Please ensure that your local executive has your current contact information.
 
UTE is extremely proud of you, our members, and sincerely appreciates your loyal support and resilience during this difficult round of bargaining. With your ongoing support, we will continue to strive to achieve further improvements to your terms and conditions of employment and working conditions.
 
In Solidarity,

  Marc Brière's signature

Marc Brière
National President
Union of Taxation Employees

Adam Jackson's signature

Adam Jackson
2nd National Vice-President
Union of Taxation Employees

CRA RATIFICATION VOTES TO BE HELD MAY 24 TO JUNE 16

CRA RATIFICATION VOTES TO BE HELD MAY 24 TO JUNE 16

source 1 source 2

Ratification votes for PSAC-UTE members working at the Canada Revenue Agency (CRA) will begin on May 24 and end June 16 at 12 noon ET.

Register now

In order for PSAC-UTE members to receive their new rates of pay, retroactive pay, and lump sum payment, the new agreement must first be ratified. To ensure this ratification process is done as quickly as possible, PSAC will be conducting an expedited ratification process.

The ratification vote will be conducted using the same online voting platform used for strike votes earlier this year.

How to vote

PSAC will be holding mandatory information sessions both virtually and in-person, and you can vote at any time after attending a session up until the voting deadline June 16 at noon ET.

  1. Check your email: All PSAC-UTE members working for CRA will have received an email from communications@psac-afpc.vote May 17 with the link to PSAC’s voting platform and the credentials needed to log in. If we only have your home address on file, your voting credentials will have been mailed to you.

    If you did not receive an email on May 17, check your junk mail or other folders in your personal email account. If you’ve checked those folders and still don’t have the email, or if we don’t have your personal email on file, you can fill out a PSAC membership form to update your contact information.

    Once you submit the online membership form, PSAC will issue your voting credentials to you as soon as possible.

  1. Participate in a mandatory information session: Upon receipt of your login credentials, please proceed to register for online or in-person voting sessions using the online voting platform link.

Submit your vote: Once you attend a mandatory information session – either virtually or in person – you will then be provided with a link by email to vote. Following each information session, you can log in and vote immediately or stay on to participate in a live Q&A session held on Zoom with members of the PSAC-UTE bargaining team to answer your questions.

Vote times and locations

The following online and in-person mandatory information sessions have been scheduled.

At PSAC’s request, CRA has agreed to provide all members one and a half hours on paid leave for online ratification votes and up to three hours on paid leave, including the meal period, for in-person voting.

Virtual vote sessions

These sessions are listed in eastern time but are open to all PSAC-UTE members. Please choose the session that best fits your schedule.

  • May 24 in English – 12 noon ET
  • May 24 in English with ASL interpretation – 7 PM ET
  • May 25 in French – 7 PM ET
  • May 30 in English – 12 noon ET
  • June 5 in French – 11 AM ET
  • June 6 in English with ASL interpretation – 11 AM ET
  • June 7 in English – 1:30 PM ET
  • June 14 in French – 7 PM ET
  • June 15 in English with ASL interpretation – 8 PM ET

In-person vote sessions

These sessions will be held in the following cities. Date, time and location will be added as they become available in the coming days.

National Capital Region
  • Ottawa, ON
  • Gatineau, QC
Ontario
  • Belleville, ON
  • Greater Toronto – June 1
  • Hamilton/St. Catharines, ON
  • Kingston, ON
  • Kitchener – June 6
  • Sudbury, ON
Quebec
  • Shawinigan – May 31
  • Chicoutimi – June 8
  • Laval – June 6
  • Montreal – June 7
  • Quebec – May 29
Atlantic
  • Halifax – June 6
  • Saint John – June 1
  • St. John’s – June 12
  • Summerside – June 14
Prairies
  • Winnipeg, MB
  • Regina – June 1
  • Calgary – June 1
  • Edmonton, AB
British Columbia
  • Surrey, BC
  • Vancouver, BC
  • Penticton, BC

Register now

UTE Local 00013 June 13th AGM

UTE Local 00013 June 13th AGM

Hello UTE Local 00013 members! We are pleased to announce our upcoming annual general meeting for Tuesday June 13th. We will share a specific time later, but we anticipate a start between 5:15-6pm. More details will follow shortly.

Please continue to monitor your inbox for updates on the tentative agreement otherwise, and we look forward to seeing you in June!