M.N.R. v. Phillips
T-1421-90
Jerome A.C.J.
6/5/93
12 pp.
Appeal from decision of Tax Court of Canada monies received by defendant from employer not to be included in computation of income for 1987 taxation year-Defendant transferred from Moncton to Winnipeg following CN intention to close Moncton Shops announced in 1986 -- Agreement between CN and Carmen Union giving union members opportunity of transferring to Winnipeg or Montréal to perform work -- Agreement also providing for relocation payment of $10,000 to union members on certain conditions -- Amount paid to defendant as conditions set out in special agreement met -- MNR including amount of $8,500 in defendant's income for 1987 taxation year -- Meaning of "allowance" under Income Tax Act, s. 6(1)(b) -- Concept of allowance clearly not applicable to payment received by defendant-Payment made in satisfaction of contractual obligation on CNR arising from Special Agreement designed to reimburse defendant for expenses incurred -- Transferred employees entitled to be financially restored to similar circumstances related to previous residence without it being considered taxable benefit under s. 6(1)(a) -- No evidence herein to support finding payment in question meets criteria of benefit -- Defendant merely restored, although only partially, to financial state before transfer-Appeal dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63, ss. 5(1), 6(1),(3).