Simplify tax laws for pilots, judge urges Ottawa

Discussion in 'Air Canada | Aeroplan' started by ACMM, Oct 26, 2011.  |  Print Topic

  1. ACMM
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    ACMM Gold Member

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    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.
     
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  2. rwoman
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    rwoman Gold Member

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    Wow, that sounds like a pain in the @...!
     
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  3. Gaucho
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    Gaucho Gold Member

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    OK... so if they wont pay Canadian tax, will they pay US tax for the flying over US airspace...? Also, Canada has a tax treaty with the US so in the end, things will probably even out.... unless the unions have found a loophole. If they do, chances are the tax men on both sides of the border will close is out sooner rather than later.... or what am I missing...?
     
  4. A pilot having permanent residence in the US can get many more writeoffs for things such as mortgages as opposed to Canada and of course lower overall taxation, and its cleaner for them interms of reporting.
     
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  5. Canadi>n
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    Canadi>n Gold Member

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    There's always been this group of AC pilots who live (for tax purposes) in Bermuda and thoroughly abuse both the Canadian tax system and their airline flight pass privileges. This shows how absurd this practice is. AC should not be hiring non-resident Canadians to fly its planes. This scam should be ended and the scamming pilots made to pay all tax court costs!
     

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