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                                                                                                                        Date: 19981202

                                                                                                                        Docket: A-87-98

MONTRÉAL, QUEBEC, THE 2nd DAY OF DECEMBER 1998

CORAM:                    THE HONOURABLE MR. JUSTICE PRATTE

                                    THE HONOURABLE MADAME JUSTICE DESJARDINS

                                    THE HONOURABLE MR. JUSTICE DÉCARY

BETWEEN:

                                                                  SUZIE GAGNÉ

                                                                                                                                              Applicant

                                                                          AND

                                              MINISTER OF NATIONAL REVENUE

                                                                                                                                          Respondent

                                                               J U D G M E N T

                        The application for judicial review is dismissed.

                                                                                                                                          Louis Pratte          

                                                                                                                                                      J.A.

Certified true translation

Peter Douglas


Date: 19981202

Docket: A-87-98

Coram:             THE HONOURABLE MR. JUSTICE PRATTE

                        THE HONOURABLE MADAME JUSTICE DESJARDINS

                        THE HONOURABLE MR. JUSTICE DÉCARY

Between:                                                   SUZIE GAGNÉ

                                                                                                                                              Applicant

                                                                         AND:

                                              MINISTER OF NATIONAL REVENUE

                                                                                                                                          Respondent

Hearing held at Montréal on Wednesday, December 2, 1998

Judgment delivered at Montréal on Wednesday, December 2, 1998

REASONS FOR DECISION BY:                              THE HONOURABLE MR. JUSTICE PRATTE


Date: 19981202

Docket: A-87-98

CORAM:                      THE HONOURABLE MR. JUSTICE PRATTE

                            THE HONOURABLE MADAME JUSTICE DESJARDINS

                                      THE HONOURABLE MR. JUSTICE DÉCARY

BETWEEN:                                              SUZIE GAGNÉ

                                                                                                                                              Applicant

                                                                          AND

                                              MINISTER OF NATIONAL REVENUE

                                                                                                                                          Respondent

                                                      REASONS FOR DECISION

                                              (Delivered from the bench at Montréal

                                                 on Wednesday, December 2, 1998)

PRATTE J.A.

[1]         The sole issue this matter raises is whether the Tax Court of Canada was justified in upholding the decision of the Minister of National Revenue, who decided that the applicant's insurable earnings for the period in question do not include the amounts she received from an insurance company under a wage loss insurance contract that the City of Montréal, her employer, had taken out for the benefit of its employees.


[2]         In our view, the Tax Court of Canada's decision is sound. However, we cannot agree with its reasons.

[3]         Section 2 of the Unemployment Insurance Act defines the expression "insurable earnings" as "earnings from insurable employment . . . of an insured person", and that expression is itself defined as follows in subsection 3(1) of the Unemployment Insurance (Collection of Premiums) Regulations:

3(1)For the purposes of this Part, a person's earnings from insurable employment means any remuneration . . . received or enjoyed by him, paid to him by his employer in respect of insurable employment . . . .

[4]         To understand that definition, regard must be had to subsection 2(2) of the same Regulations, which defines the term "employer" thus:

2(2)For the purposes of . . . these Regulations, "employer" includes a person who pays or has paid remuneration or other earnings of an insured person for services performed in insurable employment.

[5]         It follows from all of this that a person's insurable earnings may, contrary to what the Tax Court of Canada said, come from someone other than the employer. Nevertheless, those earnings must be paid "for services performed in insurable employment". It is clear that the insurance benefits paid to the applicant were not paid to compensate her for services she had performed in the course of her employment.

[6]         The application for judicial review must accordingly be dismissed.

                                                                                                                                          Louis Pratte            

                                                                                                                                                      J.A.

Certified true translation

Peter Douglas


                    FEDERAL COURT OF APPEAL

Date: 19981202

Docket: A-87-98

Between: SUZIE GAGNÉ

                                                                                Applicant

                  AND

                  MINISTER OF NATIONAL REVENUE

                                                                            Respondent

                                                                                                                                           

                        REASONS FOR DECISION

                                                                                                                                           


                                                  FEDERAL COURT OF APPEAL

                            NAMES OF COUNSEL AND SOLICITORS OF RECORD

COURT FILE NO.:                                        A-87-98

STYLE OF CAUSE:                           SUZIE GAGNÉ

                                                                                                                                    Applicant

                                                                        AND

                                                                        MINISTER OF NATIONAL REVENUE

                                                                                                                                    Respondent

PLACE OF HEARING:                                 Montréal, Quebec

DATE OF HEARING:                                   December 2, 1998

REASONS FOR JUDGMENT OF THE COURT (THE HONOURABLE MR. JUSTICE PRATTE, THE HONOURABLE MADAME JUSTICE DESJARDINS AND THE HONOURABLE MR. JUSTICE DÉCARY)

DELIVERED FROM THE BENCH BY:      Pratte J.A.

DATED:                                                          December 2, 1998

APPEARANCES:                   Suzie Gagné                                          the applicant

                                                Valérie Tardif                                        for the respondent

SOLICITORS OF RECORD:

                  Suzie Gagné                                                                        the applicant

                  Montréal, Quebec

                  Morris Rosenberg                                                                for the respondent

                  Deputy Attorney General of Canada

                  Montréal, Quebec

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