Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
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90071-4 |
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November 21, 1990 |
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S. Short |
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Personal & General |
Issue
1. Whether a "forfeiture of pay" under subsection 45.12(3) of the Royal Canadian Mounted Police Act, R.S.C. 1985, c. R-10 (the "R.C.M.P." Act), is taxable as income from employment.
Decision
A forfeiture of pay under subsection 45.12(3) of the R.C.M.P. Act and it's predecessor, subsection 36(1) of the previous R.C.M.P. Act, is taxable in the year that the forfeiture occurs.
Rationale
When a member of the R.C.M.P. is found guilty of a "major service offence", he/she may, inter alia, be assessed a forfeiture of pay for a period of up to ten working days. These forfeitures are deducted from the individual's pay and remitted to the Consolidated Revenue Fund.
Receipt of salary includes not only the physical receipt of amounts but also includes the constructive receipt of amounts deducted from an individual's pay. Forfeitures of pay in the above circumstances are essentially a fine or penalty which is taxable as income from employment.
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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