Incentive Award Board Treasury Board of Canada Secretariat Ottawa, Ontario K1A 0R5
D.Y. Dalphy 957-2134
Attention: Mr. Andre Desjardins Group Chief
April 7, 1987
Dear Sirs:
Re: Special Release to Interpretation Bulletin IT 75R2
This is in reply to your letter of March 23, 1987 wherein you enquire whether amounts paid from 1983 to May 1985 under the Suggestion, Merit and Outstanding Achievement Awards Programs qualify for the $500 exemption referred to in paragraph 4 of the above-noted Special Release.
Our understanding of these awards programs is as follows:
1. Suggestion Awards are the government's way of recognizing employee suggestions for improving working conditions, simplifying procedures or producing savings in the Public Service.
2. Merit Awards recognize exceptional work performance and other meritorious contributions - that is, such an award may be provided "for an exceptional and distinguished contribution to the effectiveness and efficiency of the Public Service".
3. An Outstanding Achievement Award is made in recognition of an employee's outstanding contribution to the Public Service of Canada. The citation provides: "By your diligence, skill and superior leadership you have advanced the objectives of Government and the standard of Public Service performance".
Based on the foregoing, it is our opinion that these awards appear to be prizes for employees' achievements in government service which would be considered a field of endeavour ordinarily carried on by public servants. Accordingly, amounts received pursuant to the Suggestion, Merit and Outstanding Achievement Awards Programs in 1983, 1984 or before May 24 in 1985 would qualify for the $500 exemption described in paragraph 4 of the Special Release to Interpretation Bulletin IT 75R2.
We trust these comments will be of assistance.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch