LRC Reports

Taxation and the Assessment of Income-Related Damage Awards (1994)

Keywords: damages; award; personal; injury; compensation; future loss; earnings; income; taxation; tax; gross-up; R. v. Jennings

When a court makes an award of damages to an injured person to compensate for lost earnings, the damages are calculated and awarded as if that person’s earnings attract no tax. This approach, stemming from the Supreme Court of Canada’s 1966 decision R. v. Jennings, leads to illogical results, including the overcompensation of injured parties in many cases. The report identifies problems caused by the current approach, and recommends an amendment to the Law and Equity Act to modify the common law.

Project Downloads

Below you will find additional, relevant and specific documentation, backgrounders, research, resources, media releases and summaries that have been, or will be incorporated into our final publications and study papers.
If you have questions about these or other specific documents, please reach out to BCLI using our contact page or at the bottom of each page of our website.