J.A.F. Goguen v. Her Majesty the Queen, [1995] 1 CTC 2023

Taylor J.T.C.C.:—These appeals are pursuant to the informal procedure of the Tax Court and concern the appellant’s 1988, 1989, 1990 and 1991 taxation years. They arise from an inclusion by the Minister of National Revenue (the "Minister") of pension amounts in the income of the appellant.

The facts are brief. The appellant, a retired member of the Royal Canadian Mounted Police ("RCMP"), receives income from four separate pensions; one is pursuant to the Royal Canadian Mounted Police Superannuation Act, R.S.C. 1985, c. R-ll ("superannuation”), a second is pursuant to the Pension Act, R.S.C. 1985, c. P-6 ("pension”), a third is received from the Great West Life Assurance Co. ("Great West") and a fourth is from the Canada Pension Plan, R.S.C. 1985, c. C-8 ("CPP"). Subsection 81(1) of the Income Tax Act, R.S.C. 1952, c. 148 (am. S.C. 1970-71- 72, c. 63) (the "Act") exempts from taxation certain types of pension income, compensation or other allowances. The appellant contends that all pension income he receives is exempt, whereas the Minister contends that only the pension is received on a tax-exempt basis.

While originally contested, at the hearing, it was agreed that the appellant’s illness was work-related.

With regard to "superannuation", the Court is satisfied that the pension payment was received under section 10 of the Royal Canadian Mounted Police Superannuation Act, and unrelated to section 27 of that Act, as contended by the appellant. The "superannuation" pension amount is not exempt and must be included in income.

With regard to "Great West", the amount received from this source specifically was reduced by a calculation involving the amount to be received under "pension" above. The appellant’s contention was that this meant that "superannuation" was "subject to the Pension Act". While an intriguing proposition, and one that deserved thoughts, I have concluded that such an argument must be rejected, and that the "Great West" pension is to be included in income.

With regard to "CPP", that Act is quite clear, and the amount received must be included in income.

The appellant’s appeals must be dismissed.

Appeals dismissed.