Civil Circles

Tax changes in budget bill to alleviate Phoenix overpayment burden

Bill C-97 puts into law the Liberals’ 2018 promise to public servants to allow them to repay only the net of Phoenix-caused excess salary in a different tax year.
National Revenue Minister Diane Lebouthillier is responsible for the Canada Revenue Agency. The agency administers Income Tax Act, which the Liberals plan to change to allow more time for people to deal with getting the wrong paycheque—a big problem for public servants thanks to Phoenix.
Long-awaited tax changes to help federal employees saddled with the unusual problem of getting paid too much thanks to the problem-plagued Phoenix payroll system have made it into legislation—a year after the government first signalled help was on the way. Among the dozens of statutes affected by...

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