The fun of the day Link to full article in the Globe and Mail Simplify tax laws for pilots, judge urges Ottawa Fresh from defusing a potential strike by flight attendants, Ottawa is being asked to referee a dispute involving another group of Air Canada employees – pilots who live abroad and are fighting tax authorities over paying on only the portion of their work hours they spend in Canadian air space. The situation has created such complicated court cases that Parliament needs to come up with new rules, according to the latest judicial ruling on a pilot's income tax dispute. “It would be a blessing to bring an end to all the endless manoeuvring,” Mr. Justice Cameron McArthur of the Tax Court of Canada wrote in a newjudgment on one of about 40 cases in which Air Canada pilots are appealing their income tax assessments. The cases involve Air Canada pilots who have established residence in another country. Under the Income Tax Act, Canadians who live in a foreign country are taxed on income they earn for duties performed in Canada. Pilots with foreign residency had already whittled away a chunk of their pay that was subject to Canadian income tax. Since 2005, they are no longer taxed on the portion of time on domestic routes that transits through U.S. airspace. Another pilot tried to go further with a push to cut the taxable portion of international flights even more by including overseas layovers when calculating duty time. Judge McArthur didn’t buy the argument, and said he had had enough.