Posts: 111
Posted: Tue Feb 14, 2017 4:01 am
This was based on policy and nothing more. When the troops moved into Kuwait the area was rated as a level 3 environment. All level 3's and above are tax exempt on allowances (Foreign Service, Hazard, Hardship) that is allowances only, regular income is always taxed as per CRA guidelines.
It was deemed that Kuwait does not rate a level 3 which was dropped to a level 2. Once dropped below 3 all your extra allowances become taxable income. Have done 3 international postings and 6 operational deployments and this has been the norm for years.
Piss poor reporting and lack of knowledge is the only thing that is happening here.