Chief of the Defence Staff Jonathan Vance has launched a wide-ranging review of the rules around tax-free status for military personnel, after troops in Kuwait lost a tax break because officials said they didn鈥檛 face a high enough risk.
At the top of Vance鈥檚 list is making sure no more troops lose their tax exemption partway through deployment.
鈥淢y intent at this juncture is to try and avoid anyone losing this tax break while they鈥檙e actually on operations,鈥� he said Friday.
麻豆传媒 first broke the story that more than 300 Canadian Forces personnel in Kuwait were losing a tax break worth $1,500 to $1,800 a month, after the military downgraded the risk assessment of their mission -- even though some personnel regularly enter Iraq, where the Islamic State has a foothold.
The Chief of the Defence Staff said troops are supposed to receive a six-month warning if their tax status will be lost. But several military personnel in Kuwait told 麻豆传媒 they were not told in advance.
鈥淚 didn鈥檛 know at all until I got on the ground,鈥� said one soldier who spoke to 麻豆传媒 on the condition of anonymity.
Vance hinted that those who already lost their tax break mid-tour in Kuwait could see a resolution.
鈥淭hose who had planned on it ought to be able to get it,鈥� he said. 鈥淪o we鈥檙e going to work on that and we鈥檙e going to try and put that in place.鈥�
Critics say the government should expand tax-free status to more troops stationed in global hotspots.
Documents obtained by 麻豆传媒 show that Canadians serving in Bahrain, Qatar and Jordan -- where American and Jordanian security forces have been targeted in terror attacks -- do not receive a tax break, while U.S. soldiers stationed in those same countries are tax exempt.
鈥淐ertainly, these are dangerous areas,鈥� said Christian Leuprecht, a professor of political science at the Royal Military College. 鈥淚n Jordan, we have active efforts by militant groups inside the country.鈥�
Even the mission in Erbil, Iraq, came up for review, after a risk assessment failed to qualify for automatic tax relief. On Friday, the finance minister鈥檚 office said it expects Canadian troops in Iraq will keep their tax-free status.
