INCOME TAX |
Income Calculation |
Deductions |
Canada v. Whitney
A-305-01
2002 FCA 266, Noël J.A.
21/6/02
6 pp.
Appeal from Tax Court's decision ([2001] 2 C.T.C. 2714) allowing appeal against reassessments under Income Tax Act with respect to 1996, 1997 taxation years--Income Tax Act, s. 56(1)(v) requiring inclusion in income and s. 110(1)(f) permitting deduction in computing taxable income of compensation received under federal, provincial employees' or workers' compensation law in respect of injury, disability, death--Tax Court holding compensation received by respondent while unable to work by reason of work-related injury within ss. 56(1)(v), 110(1)(f)--Holding compensation received pursuant to collective agreement, but nevertheless received "under" New Brunswick Workers' Compensation Act--In so concluding, relied on terms of collective agreement, which adopt disability certification process of Workers' Compensation Board of New Brunswick--Appeal allowed--Compensation paid, received under collective agreement, and pursuant to its terms--That one such term required work-related injury of respondent to be certified by Workers' Compensation Board not altering fact compensation paid, received under collective agreement, not under Compensation Act, particularly as arrangement under which Board providing employer with disability certification process extra-statutory--Furthermore compensation payments made in manner inconsistent with Act--Compensation not paid "under" Compensation Act--Respondent would have no recourse under Compensation Act if compensation ceased being paid without cause, reason--Wording of ss. 56(1)(v), 110(1)(f) excludes payments made to disabled worker by employer under long-term disability program--No ambiguity in these provisions--Interpretation Bulletin IT-220R2 raising ambiguity inasmuch as appearing to contemplate compensation within relevant provisions even though not paid, received under compensation law--Act itself reflects no such ambiguity--Bulletin, non-statutory document cannot create ambiguity where none exists in Act--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 56(1)(v) [as am. by S.C. 1994, c. 7, Sch. III, s. 13], 110(1)(f) [as am. idem, s. 49]--Workers' Compensation Act, R.S.N.B. 1973, c. W-13.