Guay v. Canada
A-499-96
Décary J.A.
15/4/97
7 pp.
Application for judicial review of decision of Tax Court of Canada confirming MNR's notice of assessment-Applicant federal public servant employed by Department of Foreign Affairs and International Trade and part of group known as rotational employees-In assessment for 1991 Minister included in applicant's revenue $9,735 he had received in 1991 from his employer, Government of Canada, to reimburse him for expenses incurred to send children to Lycée Claudel in Ottawa-Minister arguing this was reimbursement of actual expenses incurred by applicant and hence benefit received by him by virtue of his employment within meaning of Income Tax Act, s. 6(1)(a)-Once only realistic option available to employee because of rotational nature of employment is to enrol children in only institution in Ottawa offering French education system recognized throughout the world, it can no longer be concluded that there is insufficient relationship between expenses incurred by employee and his employment-Ultimate decision of course made by employee but, in reality, imposed on him by very nature of employment and employer itself recognized exceptional situation faced by rotational employees-Relationship between reimbursed expenses and applicant's employment sufficient to exclude reimbursement from tax field of s. 6(1)(a)-Reimbursement by Government of cost of applicant's children's education at Lycée Claudel in Ottawa in no way increased applicant's net worth-Reimbursement put him in same position as if he had not been compelled by nature of employment to send children there-Application allowed-Income Tax Act, S.C. 1970-71-72, c. 63, s. (6)(1)(a) (as am. by S.C. 1980-81-82-83, c. 140, s. 1).