Dagenais v. Canada
T-498-90
Rouleau J.
3/5/95
11 pp.
Appeal from MNR's assessment payments received under wage loss replacement plan pursuant to collective agreement taxable income -- Plaintiffs, employees of pulp and paper mill, entitled to short and long term wage indemnity in event of illness or injury (benefits package) -- Plaintiffs not including benefits in taxable income during relevant years -- Issue whether income received by plaintiffs by way of wage indemnity arising from collective agreement taxable -- Plaintiffs maintaining benefits plan constituting "employee-pay-all plan" and as such exempt from taxation -- In promulgating amendments to Income Tax Act in 1970s, Parliament intending benefits received by employees, including employment insurance benefits, to be included in income unless qualifying as exemption -- Act, s. 6(1)(f) clear and unambiguous that benefits package to be included in computing taxpayers' income-For benefits package to constitute employee-pay-all plan, plaintiffs must establish payment for entire cost: no evidence led to substantiate such claim -- No evidence regarding amount employees allegedly paying for benefits package -- Absence of contrary indications resulting in adverse finding of employee contribution -- Appeal dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63, s. 6(1)(f).