Vol. 137, No. 13 — June 18, 2003

Registration
SI/2003-113 18 June, 2003

FINANCIAL ADMINISTRATION ACT

Danielle Gareau Remission Order

P.C. 2003-774 29 May, 2003

Her Excellency the Governor General in Council, considering that the collection of the tax is unjust, on the recommendation of the Minister of National Revenue, pursuant to subsection 23(2) (see footnote a)  of the Financial Administration Act, hereby remits tax under Part I of the Income Tax Act in the amount of $155.10 for the 1998 taxation year, and all relevant interest thereon, paid or payable by Danielle Gareau.

EXPLANATORY NOTE

(This note is not part of the Order.)

This Order remits a portion of income tax and all relevant interest paid or payable thereon by Danielle Gareau in respect of the 1998 taxation year.

In 1998, Ms. Gareau received Employment Insurance (EI) benefits in excess of her entitlements. She repaid some of the excess in 1998 and, on the advice of officials of the Department of Human Resources Development, she repaid the balance by installments in 1999. Repayments of benefits may be deducted from income in the year of repayment. Thus, Ms. Gareau was entitled to deduct her repayment from her 1999 income. However, she had no income in 1999 from which to deduct it. As a result, she has been taxed in 1998 on EI benefits that she repaid in 1999. The inclusion in income of EI benefits in 1998 that were later repaid unfairly caused Danielle Gareau additional tax liability.

Footnote a 

S.C. 1991, c. 24, s. 7(2)

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