PSAC Pay Equity Bulletin

Discovery phase of PSAC test tax case almost over  

The Discovery phase of the PSAC's test case challenging the taxation of interest payments on federal pay equity adjustments is just about finished.   At this time, it looks as if it might be completed early this year. 

Once that phase has been completed, a date for the actual hearing in the Tax Court can be scheduled.   While the union had reported in an earlier bulletin that the case might be heard in 2003, the hearing will now likely take place sometime in 2004.    

At this time, it is impossible to speculate as to when a decision from the Tax Court might be released.   Once it is released, it may be appealed by either party.  

Further bulletins will be issued when there is news to report about the progress of the case.  

Time to take action with your Member of Parliament  

PSAC members in Quebec have been lobbying their Members of Parliament and gaining support for changes to Canadian Tax Law to eliminate the taxation of interest on pay equity payments and the assessment of arrears penalties when the carry-back option is used to tax retroactive pay equity adjustments.  

Now this campaign is going nation-wide.   You can be part of it by using our Fax Your MP service and sending a message to your Member of Parliament.   Follow-up phone calls and visits will impress upon your MP the need for these changes.   You can also print a copy of our petition which can be circulated for signatures in your workplace and then sent to your MP.