Date: 20020515
Docket:
2001-3671-IT-I
BETWEEN:
STELLA
McBRIDE,
Appellant,
and
HER MAJESTY THE
QUEEN,
Respondent.
Reasonsfor
Judgment
(delivered orally from the Bench at
Calgary, Alberta on May 15, 2002)
Beaubier,
J.T.C.C.
[1]
This appeal pursuant to the Informal Procedure was heard at
Calgary, Alberta on May 13 and 15, 2002. The Appellant
testified and called William Cormylo to testify.
[2]
The matters in appeal and the facts in evidence respecting it are
set out in paragraphs 3 to 9 inclusive of the Reply to the Notice
of Appeal. They read:
3.
He admits:
(a)
that effective March 23, 2000, legislation was enacted in Alberta
to provide for a special one-time payment by the Workers'
Compensation Board of Alberta to remarried widows and widowers
whose spouses died from pre-1982 work related causes;
and
(b)
that since the Appellant's spouse died in 1957 as a result of
a work related accident, the Appellant qualified to receive this
one-time payment
as
stated in the second unnumbered paragraph of the letter dated
April 23, 2001.
4.
In computing income for the 2000 taxation year, the Appellant
reported total income in the amount of $95,378.00, as
follows:
|
Old Age Security
Pension
|
$5,079.00
|
|
Canada Pension Plan
Benefits
|
5,979.00
|
|
Interest
|
1,342.00
|
|
Taxable Capital
Gains
|
83.00
|
|
Other Income
|
5.00
|
|
Workers'
Compensation
|
80,000.00
|
|
Social
Assistance
|
790.00
|
|
Net Federal Supplements
Paid
|
2,100.00
|
|
Total Income
|
$95,378.00
|
5.
In assessing the Appellant for the 2000 taxation year on
April 26, 2001, the Minister of National Revenue (the
"Minister") assessed, inter alia, tax on Old Age
Security Benefits in the amount of $6,213.00 pursuant to section
180.2 of the Income Tax Act, calculated as
follows:
Lessor of:
|
A
|
Old Age Security Pension
Paid
|
$5,079.00
|
|
|
Net Federal Supplements
Paid
|
2,100.00
|
|
|
Total Old Age Security
Benefits Paid
|
$7,179.00
|
|
|
Less: Old Age Security
Pension Paid Back in 2000
|
0.00
|
|
|
A =
|
$7,179.00
|
|
or
|
|
|
|
B
|
Net Income of Appellant
Before Adjustments
|
$95,378.00
|
|
|
Subtract: Base
Amount
|
53,960.00
|
|
|
Net Income After
Adjustments
|
$41,418.00
|
|
|
|
x
15%
|
|
|
B =
|
$6,213.00
|
|
|
|
|
|
|
Tax Assessed Equals the
Lessor of A or B =
|
$6,213.00
|
6.
On April 30, 2001, the Appellant served on the Minister a Notice
of Objection to the assessment dated April 26, 2001 for the 2000
taxation year.
7.
In response to the Notice of Objection, the Minister confirmed
the assessment dated April 26, 2001 for the 2000 taxation
year by Notification of Confirmation dated
July 6, 2001.
8.
In so assessing the Appellant, the Minister made the following
assumptions of fact:
(a)
the facts admitted and stated above, some of which are repeated
here for ease of reference;
(b)
on or about March 23, 2000, the Province of Alberta passed
legislation under the Special Payment Act (Alberta) to
provide for a special one-time payment under the Workers'
Compensation Act (Alberta) to remarried widows and widowers
whose spouses died from pre-1982 work related causes;
(c)
the Appellant received a one-time lump sum payment from the
Workers' Compensation Board of Alberta under the
Workers' Compensation Act (Alberta) in the amount of
$80,000.00 in the 2000 taxation year;
(d)
the payment to the Appellant from the Workers' Compensation
Board of Alberta was made as compensation in respect of the death
of the Appellant's spouse in 1957 as a result of a work
related accident;
(e)
the Appellant received total income in the amount of $95,378.00
in the 2000 taxation year as stated in paragraph 4
above;
(f)
the net income of the Appellant for the 2000 taxation year before
deducting any amount pursuant to paragraph 60(w) of the Income
Tax Act was $95,378.00;
(g)
the Old Age Security pension in the amount of $5,079.00 and the
net federal supplement in the amount of $2,100.00 that were
received by the Appellant in the 2000 taxation year as stated in
paragraph 4 above were received pursuant to the Old Age
Security Act.
B.
ISSUES TO BE DECIDED
9.
The issues to be decided are:
(a)
whether the Appellant is liable to pay tax on Old Age
Security Benefits in the amount of $6,213.00 for the 2000
taxation year; and
(b)
whether the assessment of the tax on Old Age Security Benefits in
the amount of $6,213.00 has resulted in any type of
discrimination to the Appellant.
[3]
The Appellant and Mr. Cormylo agreed that the question before the
Court is not one of discrimination based on the Charter.
Rather it is an income question based on a one-time
payment.
[4]
The payment of $80,000 by the Alberta Workers' Compensation
is a "special payment" authorized by Chapter S-17 of
the Statutes of Alberta, 2000. It is, nonetheless a payment by
Workers' Compensation out of its funds. It triggered the
"clawback" in question of the Appellant's Old Age
Security.
[5]
That payment constituted a "pension"
"benefit" or "compensation" pursuant to
subsection 56(1)(a) and (v) of the Income
Tax Act. It is explicitly described in both subparagraphs.
(See also Lamarre Proulx, J.'s reasoning in Poulin v.
Canada, 1998 T.C.J. No. 36, the reasoning of which is adopted
respecting this appeal.)
[6]
For this reason, the appeal is dismissed.
Signed at Saskatoon, Saskatchewan, this
3rd day of July, 2002.
"D. W. Beaubier"
J.T.C.C.
COURT FILE
NO.:
2001-3671(IT)I
STYLE OF
CAUSE:
Stella McBride v. Her Majesty the Queen
PLACE OF
HEARING:
Calgary, Alberta
DATE OF
HEARING:
May 13 and 15, 2002
REASONS FOR JUDGMENT
BY: The Honourable Judge D. W.
Beaubier
DATE OF
REASONS:
May 27, 2002
APPEARANCES:
For the
Appellant:
The Appellant herself
Counsel for the
Respondent:
Mark Heseltine
COUNSEL OF RECORD:
For the
Appellant:
Name:
Firm:
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
Email this Content