In 2012, Canada ceased unjust Service Income Insurance Plan Long Term Disability (SISIP) offsets of Pension Act payments to over 10,000 disabled veterans as it was ruled to be unlawful in the Dennis Manuge class action.

A significant portion of the $1.9 Billion paid was absorbed by income tax, up to 30%. This seems very unfair. These disabled veterans were deprived of a significant amount of money for an extended period. Since 1976, to be exact. The taxability of SISIP is highly doubtful in any event. All LTD was tax free prior to 1971. That was when Canada added s. 6(1)(f) to tax certain LTD plans under strict conditions.

One of these conditions is that the money must be paid periodically. SISIP LTD violated this condition by unlawfully offsetting the Pension a disabled veteran was getting, in part, for pain & suffering. Therefore Canada was not in accordance with an important term. Had the payments been made in the period they were due, tax might have applied.

That was not the case, though. In other words, the SISIP LTD settlement money was not paid "periodically." Some might say the money would have been taxed in any event. Maybe, maybe not. What did the ITA say in those years?

In any event, I am asking Canada to pass a Remission Order to recognize the pain & suffering caused by unlawfully offsetting the Pension from SISIP LTD. Our disabled veterans deserve special recognition & unlike most LTD, a veteran can get SISIP LTD plus Pension due to SISIP's decision not to place a "war" exclusion in the policy. That indicates a special treatment for disabled veterans & rightly so.

These people volunteer to place their greatest asset on the line for Canada, placing life & limb at risk.