Pay equity payments and your tax return - Questions and Answers.

 

Question 1:

Are the pay equity adjustment payments I received taxable?

Answer 1:

Yes, all pay equity adjustment payments are taxable. You must include all pay equity payments on your tax return for the year you receive them.

Question 2:

Is the Pay equity interest cheque I received taxable?

Answer 2:

Yes, this interest cheque is taxable. You must include it on your tax return for the year you receive it. You should note that no income tax is deducted at source from this cheque. Therefore, as previously indicated, you should seek personal financial advice in order to plan accordingly.

Question 3:

Where can I receive more information on how my pay equity payments could affect my taxable income?

Answer 3:

If you need more information, you can contact the Canada Customs and Revenue Agency at 1-800-959-8281.

You can also visit the CCRA Web site at:

http://www.cra-arc.gc.ca/menu-e.html

It is important to note that if you received any pay equity payments, you are strongly encouraged to seek financial advice from the financial institution of your choice.