Leonard v. Canada
T-651-87
Joyal J.
13/9/96
8 pp.
Employees' insurance indemnities-Appeal of Tax Court judgment considering as taxable income payments received by plaintiff, employee of brewery and member of union collective agreement, for 1979 and 1982 respectively, on account of illness or injuries-Plaintiff arguing payments not taxable income as not paid on periodic basis as per Income Tax Act, s. 6(1)(f) but part of wages as per s. 6(3) and Brewery acting as trustee in disbursing plaintiff's funds-Plaintiff relying on Cunningham v. Wheeler ; Cooper v. Miller ; Shanks v. McNee, [1994] 1 S.C.R. 359 where payments made by employer pursuant to collective agreement regarded as paid by employee if latter has foregone higher wages or other benefits in bargaining process-Defendant arguing plaintiff receiving payments by reason of illness from insurer and paid on periodic basis for loss of part of income from employment, pursuant to sickness or accident insurance plan to which employer contributed but employee had not-Appeal dismissed-So long as contract calling for payments on periodic basis character of payments not changed by fact not paid on time-Intent of Parliament under s. 6 to include as taxable income all monies received by taxpayer from employer by reason of employment with certain exceptions-S. 6(1)(f)(i) should be interpreted in manner consistent with intent-Income Tax Act, S.C. 1970-7172, c. 63, s. 6(1)(f),(3).