# 2024-211 Pay and Benefits, Allowances and Benefits, Tax Relief Benefits

Case summary

F&R Date: 2025-11-26

The grievor contested the implementation of the Memorandum of Understanding (MOU) between Latvia and Canada and his ineligibility to the Latvian Value Added Tax (VAT) exemption described therein. He argued that the language in the MOU was ambiguous and did not clearly state which Canadian Armed Forces (CAF) members in Latvia were eligible nor how to obtain the VAT exemption. As redress he requested that he be reimbursement the amount of VAT he paid during his posting. He also recommended the MOU be reviewed and clarified for CAF members.

The Director General Compensation and Benefits, acting as the Initial Authority, was unable to render a decision during prescribed timeframe and the grievor requested the file be forwarded to the Final Authority. 

The Committee found that in accordance with information provided to the CAF by Latvian authorities, the VAT exemption was applicable to international staff of the Multinational Division-North Headquarters (MND N HQ) and their dependents. Eligible personnel were defined as those who were stationed as part of MND N HQ and Command Support Brigade for more than six months, who were not citizens of Latvia, and who have completed an accreditation process carried out by the Ministry of Foreign Affairs of Latvia. As such, the Committee determined that eligibility for the VAT was prescribed by the Latvian government and fell outside the CAF's jurisdiction to approve or reimburse. 

Finally the Committee found that grievor's unit, the Latvian Allied Augmentation Team, was not a part of the MND N HQ and therefore the grievor did not meet the necessary conditions for eligibility to the Latvian VAT exemption. 

The Committee found the grievor not to be aggrieved and recommended the Final Authority deny redress.