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Hi!
I'm a student currently working on a paper on how the Canadian Forces can be better rewarded for their services. Particularly I'm looking for ideas on how tax policies may be used to achieve this goal. As a first step, I'm trying to understand the pay system of the Canadian Forces and have reviewed the DND website and this forum for the associated information. However, I still have some other questions which I hope members of this forum may have knowledge on. The questions are as follows:
1) How does one advances between the ranks? Are promotions automatic or based on an assessment of the knowledge, skill and abilities of the individual at the top Incentive Pay Category of the rank?
2) Are there pay ceilings once a CF member gets to certain levels? (ie Chief Warrant Officer of a Non-commissioned Member)
3) How is military pay taxed? It is to my understanding that basic salary is taxable. But there is a tax policy that exempts tax for CFs on foreign deployments at the medium to high risk levels. How do you feel about this tax policy? Do you think that it represents adequate compensation? If not, what more can be done?
4) What kinds of allowances are given to all Canadian soldiers? What kind of allowances are only given to soldiers employed on foreign missions? How are these allowances taxed? It is to my understanding that some are taxable, ie Posting Allowance. Which allowances are non-taxable? It is to my understanding that Operations Allowances are non-taxable, is that correct?
5) I have also noted in my research that the "Posting Allowance" is taxable and the amount paid differs depending on marital status and rank. Are there other allowances that are paid based on these factors? How do you feel about the fairness of such provisions?
Those are my questions at this time. Any answers or guidance will be greatly appreciated!
Thank you!!
TaxStudent
I'm a student currently working on a paper on how the Canadian Forces can be better rewarded for their services. Particularly I'm looking for ideas on how tax policies may be used to achieve this goal. As a first step, I'm trying to understand the pay system of the Canadian Forces and have reviewed the DND website and this forum for the associated information. However, I still have some other questions which I hope members of this forum may have knowledge on. The questions are as follows:
1) How does one advances between the ranks? Are promotions automatic or based on an assessment of the knowledge, skill and abilities of the individual at the top Incentive Pay Category of the rank?
2) Are there pay ceilings once a CF member gets to certain levels? (ie Chief Warrant Officer of a Non-commissioned Member)
3) How is military pay taxed? It is to my understanding that basic salary is taxable. But there is a tax policy that exempts tax for CFs on foreign deployments at the medium to high risk levels. How do you feel about this tax policy? Do you think that it represents adequate compensation? If not, what more can be done?
4) What kinds of allowances are given to all Canadian soldiers? What kind of allowances are only given to soldiers employed on foreign missions? How are these allowances taxed? It is to my understanding that some are taxable, ie Posting Allowance. Which allowances are non-taxable? It is to my understanding that Operations Allowances are non-taxable, is that correct?
5) I have also noted in my research that the "Posting Allowance" is taxable and the amount paid differs depending on marital status and rank. Are there other allowances that are paid based on these factors? How do you feel about the fairness of such provisions?
Those are my questions at this time. Any answers or guidance will be greatly appreciated!
Thank you!!
TaxStudent