RCMP Leave Deduction – Tax Court of Canada Group Appeal

if you are an rcmp member who has taken leave, learn about our efforts to have the leave payments deducted from taxable income and overpayments to the cra returned to you.

We are representing a group of RCMP officers who have taken leave within the past 10 years for injuries or disabilities sustained while on duty. Our position is that these amounts have been incorrectly reported as taxable income.

In particular, our position is that such compensation should have been included as income under section 56(1)(v) of the Income Tax Act, and therefore is eligible for a deduction under section 110(1)(f)(ii). The RCMP has been including compensation paid while an officer was unable to work as taxable income and reporting this compensation on a T4 slip. The result is that RCMP officers have been wrongly paying tax on these amounts.

The Canada Revenue Agency has been rejecting amended returns, and has not allowed such amounts on appeal. We are preparing a group appeal to the Tax Court of Canada to require the CRA to deduct those amounts from income. Our process also includes amending tax returns for up to ten years. For many, these sums represent a considerable tax refund.

Please see the “FAQ” and “Contact Our Team” sections of this webpage for further information.

Frequently Asked Questions

Contingent on the group reaching a sufficiently large size, it is our intent to charge a flat fee for legal services. You will receive information about this fee upon contacting us. This will cover all stages of the litigation process for the lead appeals. The fee is predicated on not having to litigate each matter individually, but rather establishing the legal principle in the lead cases, which will then be applied to the members of the group. The members of the group are held in abeyance pending the lead appeals’ outcome. The fee has been set to be an affordable and accessible way for members to utilize the tax litigation process and take advantage of the economies of scale with a group file. There may be additional charges if individual group members have legal needs outside the scope of the group appeal, and those scenarios will be dealt with on a case by case basis.

There will be additional costs for the accounting processes required for each individual member, which will need to be completed separate from our legal work. We will be referring you to an accounting firm that is familiar with this matter.

Not necessarily. We have had other group appeals where potential members of the group opted not to join to avoid contribution towards the litigation costs, ended up being left out of a final settlement, and were required to individually litigate their matters at a prohibitive cost.

Yes. We have a number of officers who have already joined the group and we have identified some individuals who will serve as our lead cases. They are committed to getting RCMP officers the compensation/tax savings that they are entitled to, and are hoping that this group reaches as many members as possible. 

We are committed to making the process as simple as possible for RCMP officers to take part. To begin, complete the contact form below and a member of our team will be in contact to answer any additional questions and bring your case into our group appeal. Our team will collect all necessary information to include your file in the group. Throughout the process, group members will have virtual update calls at key stages of this matter. Group members will be able to ask questions in these calls. Such group calls have been very informative in other group appeals that we have handled.

No. Lawyers cannot guarantee the outcome of any litigation process. However, it is our position, based on the language of the Income Tax Act and our research of the case law, that the amounts in issue are deductible from income and should not be subject to tax.

No. We can refer you to an accounting firm that is familiar with this matter; you can work with them directly on any tax return amendments. You may also choose to use your own preferred accounting firm.

No. We are based in Winnipeg, but represent clients from across Canada. The entire process will be mostly hands-off once we collect your information. All information will be able to be collected electronically or through calls with clients. Group update calls and, when allowed, streaming of hearings will be virtual.

Proceeding as a large group file allows us to keep the cost to clients substantially lower than litigating files individually. There will be synergies between every aspect of these individual files, and proceeding as a group allows us to pursue a result for all group members while utilizing the strength of every group member’s shared circumstances. Our tax litigation team has extensive experience dealing with large and high-value group appeals, and is prepared to operate effectively with this file as a group appeal.

We will be working towards a resolution for leave pay deductions going back 10 years. Therefore, we will be focused on leave for injuries or disabilities sustained while on duty that group members have taken since 2015.

ABOUT OUR FIRM

Thompson Dorfman Sweatman LLP (TDS) has long been recognized as a leading full-service law firm dedicated to serving clients and delivering high quality work. We believe that collaboration is essential to providing outstanding professional service, and our collegial workplace fosters greater teamwork, responsiveness, and communication, providing better results for clients.

We are leaders in tax litigation, serving clients across Canada from our base in Winnipeg. Our tax litigation team has experience dealing with numerous group appeal files. TDS values its longstanding relationships with law enforcement and public service clients, and would be honoured to represent you as part of the RCMP Leave Deduction group appeal.

Contact Our Team

To join the group or learn more about the process, please fill out the form below and a member of our team will contact you. If you are unsure of exact dates or leave details, please fill in the form to the best of your knowledge. Following submission of the form, a member of our team will be in contact with you to provide you with instructions for next steps.

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TDS acknowledges, respects and have the honour of being located on the lands in Treaty 1, Treaty 2 and Treaty 6 territories, the traditional homelands of the Anishinaabe, Blackfoot, Cree, Oji-Cree, Dene, Dakota, Lakota, Nakota and Métis Nations. We also acknowledge that the potable water we drink here in Winnipeg is sourced from Shoal Lake 40 First Nation. We recognize and acknowledge the harms and mistakes of the past and believe in reconciliation, cooperation and moving forward in partnership with Indigenous communities.

DISCLAIMER: This website is presented for informational purposes only. The content does not constitute legal advice or solicitation and does not create a solicitor client relationship.