2020 Phoenix pay system damages agreement with the Public Service Alliance of Canada (PSAC)

In February 2024, the Canada Revenue Agency and a PSAC member reached a settlement regarding the taxability of the lump-sum payment received by PSAC members under the 2020 Phoenix pay system damages agreement. Under the terms of the settlement, the portion for stress and damages (up to $1,500) is non-taxable. To benefit from the settlement, you must have filed a notice of objection disputing the taxation of this amount. If you received this payment (up to $1,500) in 2021 and have not filed a Notice of Objection, the deadline to file (April 30, 2024) has passed. If you received this payment (up to $1,500) in 2022, but have not yet filed a notice of objection, you can request to late file your objection online through My Account for Individuals. You have until April 30, 2025. Only those members who file these documents will have the settlement applied and their employment income reduced for that year. For more information, go to How to file an objection.

Due to the high volume of Phoenix objections we have received to date, it is expected that there will be delays in assigning and resolving your objection. We kindly request your patience.