Author Topic: Tax Exemption for Salaries of Deployed Canadian Armed Forces Personnel and Polic  (Read 1796 times)

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Offline dangerboy

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Good news for some pers

https://www.canada.ca/en/department-national-defence/news/2017/05/tax_exemption_forsalariesofdeployedcanadianarmedforcespersonnela.html


Quote
News Release
From National Defence

May 18 2017 – Ottawa, ON – Government of Canada

Recognizing the commitment and sacrifice that Canadian Armed Forces members - and their families - make for Canada when a member deploys abroad, Defence Minister Harjit S. Sajjan, Finance Minister Bill Morneau, and Public Safety Minister Ralph Goodale today announced the Government’s intention to exempt the military salaries of all Canadian Armed Forces personnel deployed on named international operations from federal income taxes, up to and including the pay level of Lieutenant-Colonel.

This tax relief would also apply to police officers deployed on international operational missions.

This measure is an important part of a broader package of administrative changes and new measures included in Canada’s new Defence Policy, which will improve the way the Government of Canada treats our military personnel. Canada’s new Defence Policy will be made public on June 7, 2017.

These changes ensure that Canadian Armed Forces personnel and police officers deployed on designated international missions are recognized for their sacrifice and that of their family.


Quotes
“When our women and men in uniform deploy internationally, they and their families make great sacrifices on our behalf. Military families are the strength behind the uniform and we must do more to acknowledge that our people are our most important asset. The Government of Canada will recognize their sacrifices with these important tax relief measures.”

—    Harjit S. Sajjan, Defence Minister
“I am very pleased to provide further recognition of the special contribution that Canadian Armed Forces members and police officers make to international peace and stability while serving their country abroad.”

—    Bill Morneau, Minister of Finance
“The government is proud of the important work our police do abroad to support peace and stability in parts of the world that badly need both. We will provide further recognition of their tireless work by providing additional tax relief when they are deployed abroad.”

—    Ralph Goodale, Minister of Public Safety and Emergency Preparedness
Quick Facts
While the number of CAF personnel on deployed operations changes from day-to-day, there are currently approximately 1,450 Canadian Armed Forces personnel deployed on international military operations.

The Government intends to make this measure retroactive to January 1, 2017. These changes will not affect the assessment and awarding of existing hardship and risk allowances earned by Canadian Armed Forces personnel deployed abroad.

Related Products
Notice of Ways and Means Motion
Backgrounder: Tax Relief for Canadian Armed Forces Personnel and Police Officers
Contacts
Jordan Owens
Press Secretary
Office of the Minister of National Defence
Phone: 613-996-3100
Email: jordan.owens@forces.gc.ca

Annie Donolo
Press Secretary
Office of the Minister of Finance
Phone: 613-769-7187
Email: Annie.donolo@canada.ca

Scott Bardsley
Office of the Minister of Public Safety and Emergency Preparedness
Phone: 613-998-5681

Media Relations
Department of National Defence
Phone: 613-996-2353
Toll-Free: 1-866-377-0811
Email: mlo-blm@forces.gc.ca

Media Relations
Department of Finance
Phone: 613-369-4000
Email: fin.media-media.fin@canada.ca


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Offline Dimsum

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Wow.  It's almost like they read this forum for ideas!  :nod:

Joking aside, it'll be good for the deployed folks.
Philip II of Macedon to Spartans (346 BC):  "You are advised to submit without further delay, for if I bring my army into your land, I will destroy your farms, slay your people, and raze your city."

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Offline PuckChaser

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Wow.  It's almost like they read this forum for ideas!  :nod:

Joking aside, it'll be good for the deployed folks.

Finally we'll be able to have rational discussions on hardship and risk actually equating to the situation on the ground, and not inflated to get to tax-free status. Another change noted is that the cap for tax free pay is that of a basic LCol ($9717 a month) instead of the previous cap of $8000 a month.

All in all a good change by the government, and long overdue.

Offline dapaterson

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Finally we'll be able to have rational discussions on hardship and risk actually equating to the situation on the ground, and not inflated to get to tax-free status. Another change noted is that the cap for tax free pay is that of a basic LCol ($9717 a month) instead of the previous cap of $8000 a month.

All in all a good change by the government, and long overdue.

Don't see where you're getting "basic LCol" from; the proposed ITA amendment reads "...amended to increase the maximum amount that an individual may deduct in a taxation year to the highest level of pay earned by a Lieutenant-Colonel of the Canadian Forces...."
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Offline PuckChaser

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Don't see where you're getting "basic LCol" from; the proposed ITA amendment reads "...amended to increase the maximum amount that an individual may deduct in a taxation year to the highest level of pay earned by a Lieutenant-Colonel of the Canadian Forces...."

I caught an early news release that didn't specify. In any case, its better than the $8000 currently allotted.

Online SupersonicMax

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So, $24,126 a month? (That's what a specialist doctor of the LCol rank makes at the highest incentive level)
« Last Edit: May 18, 2017, 21:43:58 by SupersonicMax »

Offline PuckChaser

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Could be, here's the link to the explanatory notes. I'll preface the link by saying they are also very vague:

http://www.fin.gc.ca/drleg-apl/2017/nwmm-amvm-0517-n-eng.asp

Quote
Clause 110(1)(f)(v)(B) is also amended to increase the maximum amount that an individual may deduct in a taxation year to the highest level of pay earned by a Lieutenant-Colonel of the Canadian Forces.

Offline Halifax Tar

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So is this meaning that as long as you are deployed you are tax free? Regardless of hazard and risk? 
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Offline H11F

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So is this meaning that as long as you are deployed you are tax free? Regardless of hazard and risk?

I'm Army, so just curious, does this mean deployments on ships (so long as part of a "named international operation") will be tax exempt? Or are they already? Ignorant of this, so purely curious.

H11F

Offline dapaterson

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If part if a named international deployment, it would appear that the answer will be "Yes".
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Offline Halifax Tar

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I'm Army, so just curious, does this mean deployments on ships (so long as part of a "named international operation") will be tax exempt? Or are they already? Ignorant of this, so purely curious.

H11F


Until this came out in the news we were not tax free unless we were in a "box" that warranted the hazard and risk levels. This was usually only for periods of a deployment, if at all, for example on Toronto in '07 we were tax free for only the month we were in pirate infested waters.

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Offline PuckChaser

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There's a lot of info that needs clarification from DND and TB.

Offline Strike

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Nice.  This means I might actually be able to get on a deployment now because, as it stands, whenever I am away for work my husband can't work (long haul trucker) and no work means less money which means serious fiscal restraint (especially given the taxes I have to pay this year after taking parental...AAARRRGHHH!).  Going tax free means his not working for that period won't break the bank for us.
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Offline Halifax Tar

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There's a lot of info that needs clarification from DND and TB.

This right here!  The devil is in the details.
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Offline Rifleman62

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You know now that John and Joan Public will be crying in their cups  :crybaby: because their understanding/interest is that military pay is ALL tax free along with the free booze and cigarettes.

Could be interesting recruiting tool.
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Offline CountDC

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"These changes ensure that Canadian Armed Forces personnel and police officers deployed on designated international missions are recognized for their sacrifice and that of their family."

Guess I am missing something as this was already the case when I worked in FSS Ops - designated missions were tax free. 
"When the power of love, overcomes the love of power....the world will know peace" - Jimi Hendrix [1942-1970]

Offline dapaterson

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This will be for all named international ops, regardless of risk & hardship levels.
This posting made in accordance with the Charter of Rights and Freedoms, section 2(b):
Everyone has the following fundamental freedoms: freedom of thought, belief, opinion and expression, including freedom of the press and other media of communication
http://laws.justice.gc.ca/en/charter/1.html

Offline PuckChaser

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Until this came out in the news we were not tax free unless we were in a "box" that warranted the hazard and risk levels. This was usually only for periods of a deployment, if at all, for example on Toronto in '07 we were tax free for only the month we were in pirate infested waters.

Was thinking about this last night. The allowances only start and you're only tax free once we hit boots on ground in the CA, any transit time to/from theatre is not counted. You guys just happen to take a month to get there, where its usually a max of 48 hours of flight time for us. Unless this changes how DND and TB applies the income tax relief, I suspect there will be no change for that specific situation you mentioned.

Offline daftandbarmy

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Can we trade 'tax exemption' for 'meaningful, well led, properly resourced, combat operations' :)
"The most important qualification of a soldier is fortitude under fatigue and privation. Courage is only second; hardship, poverty and want are the best school for a soldier." Napoleon

Offline Halifax Tar

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Was thinking about this last night. The allowances only start and you're only tax free once we hit boots on ground in the CA, any transit time to/from theatre is not counted. You guys just happen to take a month to get there, where its usually a max of 48 hours of flight time for us. Unless this changes how DND and TB applies the income tax relief, I suspect there will be no change for that specific situation you mentioned.

Ya this has always been a thorn in our side. We aren't considered on deployment until we join the NATO fleet. Mean while we have already been deployed, for all intents and purpose, once Canada slides below the horizon.

And we considered not on deployment anymore when we chop out of the NATO fleet and begin our transit home.
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