# 2012-039 Pay and Benefits, Integrated Relocation Program (CF IRP), Personal Motor Vehicle (PMV)

Integrated Relocation Program (CF IRP), Personal Motor Vehicle (PMV)

Case Summary

F&R Date: 2012–05–30

The grievor, while posted overseas, purchased a new motor vehicle. Upon importing his vehicle into Canada he subsequently paid Customs duty, Goods and Services Tax (GST) and Excise Tax as required by the Canada Border Services Agency (CBSA). Additionally, prior to registering his vehicle in the province where he had been posted, he was required to pay the provincial component of the Harmonized Sales Tax (HST).

The grievor acknowledged that the Customs duty, GST and Excise Tax are considered to be importation costs not reimbursable under section 9.4.03 of the Canadian Forces Integrated Relocation Program (CF IRP). However, he disputed the Director Compensation and Benefits Administration decision denying him reimbursement of the provincial component of the HST, contending that the importation process was complete once he had satisfied the CBSA federal importation requirements and, consequently, that the provincial component of the HST was not an importation fee but rather a reimbursable mandatory expense necessary to gain legal entry and to drive his vehicle within the province in which he was posted.

The initial authority (IA), the Director General Compensation and Benefits, explained that the grievor had to pay the provincial component of the HST as a result of his decision to import his vehicle and that even though the taxes are collected upon the licensing and registering of the vehicle, they remain part of the fees that result from importing one’s vehicle. Consequently, the IA denied the grievance, concluding that section 9.4.03 of the CF IRP policy excludes importation fees as a reimbursable expense.

The Board found that the province where the grievor was posted requires that vehicles imported from abroad be subject to the provincial portion of the HST, as part of the importation process. Although this particular tax is not collected at the same time as the other importation assessments, it is clearly an expense resulting from the act of importing a vehicle. Put another way, had the grievor lived in another province and bought a vehicle, he would not have faced this tax at the time of registering and licensing the vehicle in the province where he was posted. As such, the Board found that the provincial component of the HST is not a reimbursable mandatory expense under section 9.4.03 of the CF IRP.

The grievor also argued that it was the fault of the Canadian Forces (CF) that he was subjected to this tax by virtue of posting him to a province which was one of the few provinces participating in the HST at the time of his posting. The Board disagreed with this argument and stated that each province and posting will invariably have its own unique panoply of fees and costs; there can never be 100% equality between postings in this regard. The CF IRP provides benefits that contain a certain degree of flexibility designed to, in some measure, permit each CF member to customize the benefits to their particular requirements.

The Board recommended that the Chief of the Defence Staff deny the grievance.

CDS Decision Summary

CDS Decision Date: 2013–01–22

The CDS agreed with the Board's findings and recommendation to deny the grievance.

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