PSAC is working with the Minister of National Revenue to establish a process to resolve the taxation of Phoenix damages.  

PSAC has argued that the $2,500 in general damages negotiated in 2020 to compensate members for the stress, aggravation and pain and suffering caused by the Phoenix pay system should be tax-exempt.  

PSAC will provide further updates on any steps members need to take as part of this process. At this point, nothing is required. If you have already filed an objection or appeal, you can ask the Canada Revenue Agency to place it on hold until these efforts are completed.