PSAC Pay Equity Bulletin

Taxation of interest payments case progressing

The PSAC’s test case challenging the taxation of the interest payments received by members who were entitled to retroactive pay equity adjustments is currently at the discovery stage. This process permits each party, in this case the union and the Canada Customs and Revenue Agency (CCRA), to "discover" the case that the other party has in order that there be no surprises at the trial stage. This is a critical phase which can take some time. Evidence which is not disclosed during this pre-trial stage will likely not be allowed to be introduced at trial. 

At this time, the union doesn’t expect a hearing in the Tax Court before some time in 2003.  Once the case is heard, it is expected that it will take several months at least for a decision to be issued, which could mean a decision by the end of 2003.  However, this will depend on when the hearing actually takes place.  Once a decision is issued, it will also be subject to appeal, which could further prolong the process. 

The union will continue to post periodic bulletins on the progress of this case as new developments occur.  No news means that work on the case is continuing at the stage last reported.