Public Values

Taxing pay equity settlement perpetuates discrimination, inequality

Canadian Human Rights Tribunal dismisses human rights complaint.

by Don Butler, from the Vancouver Sun

Ottawa (January 11, 2011): The Canadian Human Rights Tribunal dismissed a human rights complaint regarding the tax treatment of a pay equity settlement dating back to 1998.

Many recipients of the settlement were taxed on the full amount of their lump sum payments in the same year, pushing many into higher tax brackets. At the same time, compound interest rates on the back taxes were applied. Lawyers for the Canadian Human Rights Commission say the tax provision perpetuates the discrimination against the pay equity recipients.

"The tax treatment of a landmark pay equity settlement has undermined the right to equality of the settlement's mostly female recipients, a lawyer for the Public Service Alliance of Canada chargedÂ…"

For the complete article, please click here.

Posted: January 28, 2011

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