Canadian Forces Personnel and Police Get Tax Break

Since 2004 certain members of the Canadian forces or a Canadian police force serving on a deployed operational mission that is assessed at a high risk level. 

The deduction is limited to the lesser of the employment income earned while serving on the mission, or the maximum rate of pay earned by a non-commissioned member of the Canadian Forces. If you qualify, do adjust your withholding taxes so more money stays in your pocket throughout the year; or contribute regularly to an RRSP or TFSA to build retirement savings.

Selected Canadian Forces missions assessed for risk allowance 2 (as determined by the Department of National Defence) will be "prescribed missions" under Income Tax Regulation 7500, including the following (active and inactive):

• Operation Palladium (Bosnia-Herzegovina);
• Operation Halo (Haiti);
• Operation Danaca (Middle East - Golan Heights);
• Operation Calumet (Middle East - Sinai);
• Operation Jade (Middle East - Jerusalem, Damascus and Egypt);
• Operation Iraqi Freedom (Kuwait);
• Operation Solitude (Senegal);
• Operation Altair (Persian Gulf);
• Operation Hamlet (Haiti);
• Operation Structure (Sri Lanka);
• Operation Habitation (Haiti);
• Operation Augural (Sudan - Kartoum);
• Operation Bronze (Bosnia-Herzegovina - North Atlantic Treaty Organization Stabilisation Force);
• Operation Boreas (Bosnia-Herzegovina - European Union Force);
• Operation Safari (Sudan - Kartoum);
• Operation Gladius (Golan Heights);
• Operation Augural (Ethiopia - Addis Ababa);
• United Nations Mission in the Sudan - Civilian Policing Component (Sudan - Kartoum);
• Operation Caribbe (Curacao);
• Operation Kobold (Balkans – Pristina);
• Operation Saturn (Ethiopia – Addis Ababa);
• Operation Enduring Freedom (Kuwait);
• Seventh Airlift Squadron Operation (Kyrgyzstan); and
• Operation Slipper (United Arab Emirates).