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March 25, 2004



Cone of Silence -- Gag Order

Tax Breaks for Some, Not Others, Causing Hard Feelings in Military
From Petawawa to Bosnia, troops say federal tax break is uneven Chris Wattie, with files from Mike Blanchfield, CanWest, Mar. 25, 04

[. . . .] Because the tax-free status is retroactive to Jan. 1, the first Canadian troops who arrived in Afghanistan will also be largely left out. Members of that first rotation to the International Security Assistance Force in Afghanistan, most of whom are based in Petawawa, Ont., will be able to reclaim federal taxes on only about six weeks of their pay.

That's because the Petawawa group's six-month mission in the Afghan capital ended in mid-February.

However, their replacements, drawn from a brigade group in Valcartier, Que., will not pay taxes for the entire six months of their mission.


And that has raised some eyebrows among the English-speaking units of the army.

[. . . .] In Camp Julien, Afghanistan, soldiers were under a gag order not to speak publicly about the federal budget for 48 hours.[. . . .]

"That's incredible a cone of silence would be ordered over our men and women in uniform," Conservative defence critic Jay Hill said.
"I question the right of anybody to order our soldiers not to talk about this type of thing that has an effect not only on them but their families."


The tax break, which will cost the government an estimated $30-million a year, covers salaries up to $6,000 a month -- the maximum pay for non-commissioned officers. Officers up to the rank of captain will also get the full benefit, but senior officers will have to pay taxes only on that part of their salary over $6,000.

[. . . .] [US] Officers do not pay taxes on the first US$6,315.90 per month of their pay.



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