Duggan v. The Queen, docket 2001-4070(IT)I (Informal Procedure)

Date: 20021001

Docket: 2001-4070-I-TI

BETWEEN:

BRIAN P. DUGGAN,

Appellant,

and

HER MAJESTY THE QUEEN,

Respondent.

Reasonsfor Judgment

(Edited from transcript of Reasons delivered

orally on September 10, 2002.)

Hershfield, J.T.C.C.

[1]            This is an appeal of the Appellant's 1999 taxation year in respect of which he contests the inclusion of $47,815.00 in disability insurance payments received by him in the year. He admits to the application of paragraph 6(1)(f) of the Income Tax Act (the "Act") but states that the "all or nothing" inclusion in cases where the employer pays any portion of the disability insurance premiums, is unfair. It results in the taxation of 100% of the disability insurance payments (less premiums paid by the employer) regardless of the percentage of the total premiums that were paid by the employer.

[2]            The Appellant argues it would be fairer to tax that percent of the disability payment that reflects the percent of premiums paid by the employer. While the Appellant's position might be well founded in reason and while he might well have a compelling case for a different tax treatment than that imposed under paragraph 6(1)(f), I am bound to give effect to the treatment imposed by Parliament and therefore the appeal must fail.

[3]            As to learning the policy behind the manner in which disability insurance payments are taxed, I suggest that the Appellant write to the Department of Finance, Tax Policy and Legislation Branch, Government of Canada in Ottawa. He might propose an amendment to the Act and seek support for change with his representative in Parliament. Others might be persuaded as to the logic of his position and reform is a possibility. The support and assistance of employee or insurer organizations or of groups representing the disabled might be helpful. Regardless, I must apply the terms of the Act as they now read in respect of the year in question. Accordingly, as stated, the appeal is dismissed. These written Reasons for Judgment are provided at the request of the Appellant.

Signed at Ottawa, Canada, this 1st day of October 2002.

"J.E. Hershfield"

J.T.C.C.

COURT FILE NO.:                                                 2001-4070(IT)I

STYLE OF CAUSE:                                               Brian P. Duggan and

                                                                                                Her Majesty the Queen

PLACE OF HEARING:                                         Winnipeg, Manitoba

DATE OF HEARING:                                           September 10, 2002

REASONS FOR JUDGMENT BY:      The Honourable Judge J.E. Hershfield

DATE OF JUDGMENT:                                       October 1, 2002

APPEARANCES:

For the Appellant:                                                 The Appellant himself

Counsel for the Respondent:              Michael Van Dam

COUNSEL OF RECORD:

For the Appellant:                

Name:                               

Firm:                 

For the Respondent:                             Morris Rosenberg

                                                                                Deputy Attorney General of Canada

                                                                                                Ottawa, Canada