| 19(1) | File No. 5-9338 |
| G. Ozols | |
| (613) 957-2139 |
January 18, 1990
Dear Sirs:
Re: Taxation of Strike Pay
This is in reply to your letter of December 29, 1989 concerning the recent decision of the Federal Court of Appeal on "strike pay" in Her Majesty v. Wally Fries 89 DTC 5240.
The Court ruled that the "strike pay" in question was clearly non-exempt income from a source within the meaning of paragraph 3(a) of the Income Tax Act, regardless of whether it constituted income from any of the other sources specifically listed in that paragraph.
In answer to your question, the Department has not changed its assessing practice or position on strike pay because of the fries case. Our position remains as stated in paragraph 3 ofInterpretation Bulletin IT-334R (copy attached), since the case has been granted leave to appeal by the Supreme court of Canada.
We trust the above is of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch