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.
Minister/DM's Office YS 91-2401TCentral RecordsAuthorSection ChiefD.O. (?)Research FileSubject or Corporate Case FileReturn to Rulings, Room 303, Metcalfe Building
April 12, 1991
19(1)
Dear 19(1):
I am writing in response to your letter of March 1, 1991, regarding one of your constituent's concerns with the decision of the Supreme Court of Canada in Wally Fries v. Her Majesty The Queen.
I understand that your constituent is concerned that striking workers may receive strike pay, equivalent in amount to regular wages, tax free even in cases where strike action is taken in support of other workers in another union.
A member of a union who is on strike or locked out need not include in income payments of the type commonly referred to as "strike pay" that are received from his or her union, even if the member performs picketing duties as a requirement of membership. On the other hand, payments made by a union to its members for services performed during the course of a strike are included in income if the member is employed by, or is a consultant to, the union whether permanently, as a member of a temporary committee or in some other capacity. The Department's position in the Wally Fries case was that the payments received by Mr. Fries fell into this latter category. The Supreme Court of Canada however held that the payments did not have the nature of "income from a source" as required for taxation under the Income Tax Act.
Since your constituent has expressed concern with the lack of income tax legislation governing the taxation of strike pay, I have forwarded a copy of this correspondence to the Honourable Michael Wilson, Minister of Finance, who is responsible for legislative amendments.
I trust this information will assist you in replying, to your constituent.
Yours sincerely,
Otto Jelinek
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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