# 2020-097 Pay and Benefits, Deduction of income tax at source

Case Summary

F&R Date: 2021–03–17

The grievor filed a grievance against the Canadian Armed Forces (CAF) refusal to issue amended T4 slips to correct an error regarding her province of employment. The grievor mentioned that the error resulted in her having to pay additional taxes, which caused her financial hardship. The grievor tried to resolve her tax issues through her support unit prior to filing her grievance.

The Initial Authority (IA) acknowledged that since 2013, the wrong province of employment was indicated on the grievor’s T4 slips.  However, the error was corrected in February 2018, which explains why she received two T4 slips for that year: one with the wrong province of employment (Quebec) and the other with the correct one (Ontario). The IA explained that since the Quebec tax rate is higher than Ontario, the grievor needed to pay additional taxes to the province of Quebec, where she was residing.

The Committee confirmed that the employer has the responsibility to deduct income tax based on the province of employment. The Committee also determined that the grievor ended up paying the correct amount of taxes for the years 2013 to 2018 and as such, there was no need to issue new T4 slips for those years. The Committee found that the grievor was not aggrieved by the CAF’s refusal to issue new T4 slips. However, the Committee found that she was aggrieved by the CAF’s support services’ failure to provide proper and accurate explanations regarding her tax issues, leading to the filing of a grievance.

The Committee recommended that the Final Authority (FA) not afford redress because the issues raised by the grievor had been resolved either by the CAF or through the grievance process.

FA Decision Summary

The FA, the Director Canadian Forces Grievance Authority, agreed with the Committee's recommendation that the grievor not be granted redress. The FA agreed with the Committee that the grievor had been aggrieved with respect to the support received from the administration office regarding tax slips and that the issues raised had since been resolved.