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In a victory for PSAC members impacted by the Phoenix pay fiasco, PSAC has secured an agreement with the Canada Revenue Agency to treat up to $1,500 of the Phoenix general damages compensation members received in 2021 as non-taxable.  

Under the Phoenix damages agreement negotiated by PSAC in 2020, up to $2,500 in damages was awarded to members who suffered under the Phoenix pay system from 2016 to 2020. PSAC has long stressed that these damages should not have been taxed, and after lengthy deliberations and a Reference filed with the Tax Court of Canada, Canada Revenue Agency (CRA) has agreed that a majority of the damages – those specifically allocated to cover the pain and suffering experienced by workers – are not taxable. Revenue Québec is not part of the agreement, but is expected to apply a similar interpretation for members living in Quebec. 

This decision means that members who file or have already filed a notice of objection regarding the taxation of Phoenix damages will be reimbursed the taxes that should not have been deducted from their damages payment in 2021.  

Over the past two years, PSAC has encouraged members to file a notice of objection, or an extension to file a notice of objection. If you did so already, no other action is required at this time.  

All members who have not already filed a notice of objection must file an extension request and notice of objection by April 30, 2024 to be eligible for their Phoenix general damages compensation to be deemed non-taxable.  

Please complete the steps outlined below as soon as possible to avoid missing the deadline. 

How to be reimbursed taxes on Phoenix damages 

Residents outside of Quebec 

If you have not filed an objection with CRA regarding the tax treatment of any Phoenix damages you’ve received, you can still file a request for an extension of time to object and an individual objection regarding the taxability of the $1,500 portion of Phoenix damages for pain and suffering in your 2021 taxation year.  

Should you instead wish to challenge the taxation of the remaining $1,000 for the late implementation of the 2014 collective agreement, you should seek independent tax advice to move forward.  

You do not need to take any action if the following circumstances apply:  

• You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages prior to April 30, 2023; or 
• You filed an individual objection with CRA to your 2021 tax assessment about the taxability of your Phoenix damages and a request for an extension to object after April 30, 2023.  

If the above circumstances do not apply to you, please follow the following steps as soon as possible and no later than April 30, 2024, to preserve your rights:  

Option 1: If you have subscribed to CRA My Account for Individuals, you can choose to file your objection online by following the two following steps: 

Step 1: select the “File a Formal Dispute” option on your personal CRA portal, where you can fill the appropriate information relating to your objection; 

Step 2: once your formal dispute is recorded, the second step is to use the “Submit Documents” option to upload an extension request to accompany your objection.  

Option 2: Alternatively, if you have not subscribed to CRA My Account for Individuals, you may choose to submit your objection by mail or fax. 

Step 1: To do so, fill out a notice of objection and an extension request. Pre-populated forms and detailed instructions can be found here.  

Step 2: Once the forms are printed and filled, you can choose to mail or fax them to the following address or fax numbers. We recommend you send your materials by registered mail to ensure they are received: 

Appeals Intake Centre 
Chief of Appeals 
Appeals Intake Centre 
1050 Notre Dame Avenue 
Sudbury ON, P3A 5C1 

Fax numbers: 
705-670-6649 or 1-866-443-4955 (NL to ON) 
604-587-2672 or 1-866-489-6832 (MB to BC and Territories) 

Quebec residents: How to file a provincial and federal objection 

Members who are Quebec tax residents must, in addition to their federal objection described above, also file a second objection with Revenu Québec – that is, Quebec members must file two separate objections, one with CRA and one with Revenu Québec.  

If you have not filed an objection with Revenu Québec regarding the tax treatment of any damages you received, PSAC urges you to file: a request for an extension of time to object and an individual objection regarding the taxability of the $1,500 portion of Phoenix damages in your 2021 taxation year.  

Should you instead wish to challenge the taxation of the remaining $1,000 for late implementation of the 2014 collective agreement, you should seek independent tax advice to move forward. 

Residents of Quebec do not need to take any action with Revenu Québec if the following circumstances apply:  

• You filed an individual objection with Revenu Québec to your 2021 tax assessment about the taxability of your Phoenix damages prior to April 30, 2023; or 
• You filed an individual objection with Revenu Québec to your 2021 tax assessment about the taxability of your Phoenix damages and a request for an extension to object after April 30, 2023.  

If the above circumstances do not apply to you, please follow the following steps as soon as possible and no later than April 30, 2024, to preserve your rights: 

Unlike CRA, Revenu Québec does not accept online objections. You must choose between mailing or faxing your objection. To do so, you must fill out a notice of objection and an extension request.  

Once the forms are printed and filled, you can choose to mail or fax them to the following address or fax numbers. We recommend you send your materials by registered mail to ensure they are received: 

Revenu Québec 
3800, rue de Marly 
C. P. 25025, succursale Terminus 
Québec QC   
G1A 0B8 

Fax numbers: 
418-577-5254 or 1-866-374-7286 

Please note that Revenu Québec is not a party to the settlement reached with CRA, and did not commit to offer the same treatment to members who file valid notices of objection regarding the taxation of the Phoenix damages. However, Revenu Québec has treated other objections similarly.  

Ratification votes for PSAC-UTE members working at the Canada Revenue Agency (CRA) will begin on May 24 and end June 16 at 12 noon ET.  

In order for PSAC-UTE members to receive their new rates of pay, retroactive pay, and lump sum payment, the new agreement must first be ratified. To ensure this ratification process is done as quickly as possible, PSAC will be conducting an expedited ratification process.   

The ratification vote will be conducted using the same online voting platform used for strike votes earlier this year. 

• Review the ratification kit 
• View the tentative agreement and ratification vote FAQ

How to vote 

PSAC will be holding mandatory information sessions both virtually and in-person, and you can vote at any time after attending a session up until the voting deadline June 16 at noon ET.   

1. Check your email: All PSAC-UTE members working for CRA will have received an email from [email protected] May 17 with the link to PSAC’s voting platform and the credentials needed to log in. If we only have your home address on file, your voting credentials will have been mailed to you. 
    
   If you did not receive an email on May 17, check your junk mail or other folders in your personal email account. If you’ve checked those folders and still don’t have the email, or if we don’t have your personal email on file, you can fill out a PSAC membership form to update your contact information.
    
   Once you submit the online membership form, PSAC will issue your voting credentials to you as soon as possible. 

2. Participate in a mandatory information session: Upon receipt of your login credentials, please proceed to register for online or in-person voting sessions using the online voting platform link. 

Submit your vote: Once you attend a mandatory information session – either virtually or in person – you will then be provided with a link by email to vote. Following each information session, you can log in and vote immediately or stay on to participate in a live Q&A session held on Zoom with members of the PSAC-UTE bargaining team to answer your questions.  

Vote times and locations 

The following online and in-person mandatory information sessions have been scheduled. 

At PSAC’s request, CRA has agreed to provide all members one and a half hours on paid leave for online ratification votes and up to three hours on paid leave, including the meal period, for in-person voting. 

In-person vote sessions 

Click on your region to view the dates of the in-person meetings and the cities where they will be held. You’ll find the rest of the details, including times and addresses, on the PSAC voting platform.

Ratification votes for PSAC members in the four Treasury Board groups will begin on May 24 and end on June 16 at noon ET.  

In order for PSAC members to receive their new rates of pay, retroactive pay, and lump sum payment, the new agreements must first be ratified. To ensure this ratification process is done as quickly as possible, PSAC will be conducting an expedited ratification process. 

The ratification votes will be conducted using the same online voting platform used for strike votes earlier this year. 

• Review the ratification kit for your group: PA | SV | TC | EB 
• Read the tentative agreement and ratification vote FAQ 

How to vote 

1. Check your email: All PSAC members in the four Treasury Board groups will receive an email from [email protected] on May 24 with the link to PSAC’s voting platform and the credentials needed to log in. 
   
   If you do not receive an email on May 24, check your junk mail or promotions folders in your personal email account. If you’ve checked those folders and still don’t have the email, we may not have your personal email on file and you can fill out a PSAC membership form to update your contact information.
   
   Once you submit the online membership form, PSAC will issue your voting credentials to you as soon as possible.

2. Watch the mandatory information session video: You are required to watch the mandatory information session video before voting. You can log into PSAC’s voting platform at any time during the voting period using the credentials emailed to you. The video cannot be skipped and must be played to the end before you will be permitted to vote. After you’ve watched the video, follow the on-screen instructions to vote. You can log into the voting platform to watch the information session video and cast your vote at any point between May 24 and June 16 at noon ET. 

3. Submit your vote: The voting deadline is June 16 at noon ET. You can vote any time after watching the mandatory information video by following the instructions on-screen. You can also log back into the voting platform at a later time to cast your vote before the deadline, including after attending an optional Q&A session. 

Optional Q&A sessions 

Should you still have question after watching the mandatory information video, you will have the opportunity to attend virtual or in-person live Q&A sessions to learn more about your tentative agreement. 

These sessions are not mandatory but will give you the opportunity to ask questions about your agreement with PSAC staff and your bargaining team. 

Virtual Q&A sessions 

These sessions will be held over zoom, and registration will open on May 24. PSAC has scheduled the following optional virtual Q&A sessions.  

You are NOT required to attend these sessions to be able to vote. 

These sessions are listed in eastern time but are open to all PA, SV, TC and EB members. Please choose the session for your classification group that best fits your schedule  

Not sure which group you belong to? You can see which bargaining group you belong to here.  

These sessions will be held over Zoom, and registration will open on May 24.

In-person Q&A sessions 

PSAC has scheduled the following optional in-person Q&A sessions for members working for Treasury Board. In-person sessions are open to all members of the four Treasury Board groups, as we will have bargaining team members from all teams in attendance.

Click on your region to view the dates of the in-person meetings and the cities where they will be held. You’ll find the rest of the details, including times and addresses, on the PSAC voting platform.
 
Note: These optional sessions are not required to be eligible to vote.