Stop the Taxation of Phoenix General Damages

February 18, 2021

Federal government workers deserve full compensation after almost five years of pay problems caused by the disastrous Phoenix pay system. But now the government wants to tax damages paid to these workers. 

Shared on behalf of Public Service Alliance of Canada, BC Region: 

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 damages payments, on March 3 – with taxes deducted. Treasury Board provided no explanation for their actions. 

“The government still has time to do the right thing,” said PSAC National President Chris Aylward.  “General damages should not be taxed, so we’re calling on key ministers to immediately intervene to fix this before payments are issued.” 

PSAC members deserve full compensation for almost 5 years of Phoenix pay problems. Send a letter and tell the federal government that Phoenix general damages shouldn’t be taxed.

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