21 November 1990 Ministerial Correspondence 900714 F - Forfeiture of Pay under R.C.M.P Act

By services, 18 January, 2022
Official title
Forfeiture of Pay under R.C.M.P Act
Language
French
CRA tags
n/a
Document number
Citation name
900714
Severed letter type
Ministerial Correspondence
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
629688
Extra import data
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"field_release_date_new": "1990-11-21 07:00:00",
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Main text
  90071-4
  November 21, 1990
  S. Short
  Personal & General 

Issue

1.     Whether a "forfeiture of pay" under subsection 45.12(3) of the Royal Canadian Mounted Police Act, R.S.C. 1985, c. R-10 (the "R.C.M.P." Act), is taxable as income from employment.

Decision

A forfeiture of pay under subsection 45.12(3) of the R.C.M.P. Act and it's predecessor, subsection 36(1) of the previous R.C.M.P. Act, is taxable in the year that the forfeiture occurs.

Rationale

When a member of the R.C.M.P. is found guilty of a "major service offence", he/she may, inter alia, be assessed a forfeiture of pay for a period of up to ten working days. These forfeitures are deducted from the individual's pay and remitted to the Consolidated Revenue Fund.

Receipt of salary includes not only the physical receipt of amounts but also includes the constructive receipt of amounts deducted from an individual's pay. Forfeitures of pay in the above circumstances are essentially a fine or penalty which is taxable as income from employment.

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