Lapierre v. The Queen – A Call to Review the Taxation of International Civil Consultants

Since January 1, 2017, all Canadian Armed Forces (“Canadian Forces”) personnel who are deployed on named international missions are eligible for certain tax relief, including a deduction in computing their income from employment for Canadian federal income tax purposes, up to and including the maximum pay incentive level of Lieutenant Colonel.[1] However, international civilian consultants (“ICCs”) who perform similar duties to military personnel may not be entitled to the same tax benefits.

In Lapierre v The Queen,[2] the Tax Court of Canada considered the Canadian federal income tax treatment of an ICC’s income from employment with the International Security Assistance Force (“ISAF”). ISAF is an ad-hoc organization mandated by the United Nations (the “UN”) led by the North Atlantic Treaty Organization (“NATO”) to assist in the maintenance of security in Kabul, Afghanistan, and its surrounding areas.