Many employees of a company contracted by the Nova Scotia government to provide care for vulnerable individuals claim they have been treated unfairly. Workers at Arden Professional Client Care allege that the company misled them for years by stating their pay was not subject to taxes, even going as far as documenting this information.
Steve Keddy, a retired teacher and school principal who works at Arden, expressed feeling like a scapegoat in the situation. Arden, funded by the provincial Department of Opportunities and Social Development, has received over $184 million in public funding over the last eight years. Despite multiple workers believing their pay was tax-exempt, the company has refrained from commenting on the matter.
Keddy, along with other workers, was under the impression that their earnings from Arden were not taxable. The company allegedly referenced a section of tax law and likened their roles to that of foster parents, suggesting their pay was non-taxable. An online petition signed by numerous individuals supports the claim that Arden workers were initially hired with the understanding that their compensation was tax-exempt.
Following a Canada Revenue Agency audit earlier this year, Keddy has been actively advocating for himself and his colleagues. Arden, which categorizes its workers as independent contractors and did not issue tax slips for prior years, stated that it does not provide tax advice to its employees. Keddy recalls that Arden management requested workers to sign contracts acknowledging their responsibility for taxes a few years ago.
Despite signing these contracts, Keddy explains that since Arden did not collect his social insurance number or provide tax slips, he assumed his income was not taxable. A letter from Arden’s vice-president in 2023 described Keddy’s wage as non-taxable, reinforcing his belief. Similar letters obtained by CBC from various sources further validate the claim that workers were led to believe their wages were tax-exempt.
Notwithstanding the ongoing uncertainty, Keddy remains hopeful for a positive resolution and urges for the issue to be addressed promptly. Discussions among his colleagues about seeking legal advice have emerged, but Keddy emphasizes the importance of resolving the matter amicably.
The language used in Arden’s letters, describing wages as non-taxable, has raised questions among legal experts like Ottawa labour lawyer Malini Vijaykumar. She highlights that income in Canada is generally taxable, making the characterization of a wage as non-taxable somewhat contradictory.
As the situation unfolds, Keddy and his coworkers are navigating the complexities surrounding their pay and taxes, hoping for a fair and equitable resolution to the ongoing predicament.