Arden Professional Client Care workers say company letters described wages as “non-taxable” as a CRA audit raises concerns about their tax exposure.
Workers at Arden Professional Client Care, a company paid by the Nova Scotia government to care for vulnerable adults and children, say they were led to believe for years that their pay was not taxable — including through company letters that used the phrase “non-taxable wage,” CBC News reported.
The concern has become more urgent since Arden told workers in March that it had been audited by the Canada Revenue Agency. Workers interviewed or cited by CBC said they now worry they may face consequences for tax treatment they say the company helped them understand as legitimate.
Arden receives funding from Nova Scotia’s Department of Opportunities and Social Development. Over the past eight years, the company accepted more than $184 million in public money, according to provincial financial statements cited by CBC. The company declined to comment for the CBC story.
Steve Keddy, an Arden worker and retired teacher and principal, told CBC he believed his Arden pay was not taxable after a face-to-face orientation and later written confirmation. He said the work was described to him as comparable to foster care, with Arden acting as an intermediary for the money.
“It feels like we’re being the scapegoat somewhat in this whole situation,” Keddy told CBC.
According to CBC, Arden classified workers as independent contractors and had not issued tax slips for previous years. The company recently told CBC that it does not give workers personal income tax advice and that workers are responsible for their own tax decisions.
Keddy said Arden later asked workers to sign contracts saying they were independent contractors responsible for “applicable taxes.” CBC reported it reviewed examples of contracts from 2021 using that language. Keddy said that because the company still did not collect his social insurance number or issue tax slips, he assumed there were no applicable taxes.
The written letters have become a central point for workers. Keddy shared with CBC a 2023 letter signed by Arden’s vice-president describing his $19.50-an-hour pay as a “non-taxable wage.” CBC said it obtained five other similar letters from independent sources, dated from 2023 to 2025, with different names and pay amounts. Two workers whose names appeared on the letters confirmed to CBC that they received them from Arden management for income verification with financial institutions.
Ottawa labour lawyer Malini Vijaykumar told CBC the wording was unusual, calling “non-taxable wage” a contradiction because wages are income for work and income in Canada is taxable.
Keddy has organized an online petition, signed by hundreds of people, saying Arden workers were hired with the understanding that their remuneration was tax-exempt. CBC reported the petition has been sent to a local MLA, an MP and the federal taxpayers’ ombudsperson.
For now, workers are waiting to see what the CRA audit means for them and whether Arden, the province or federal tax officials provide further clarity on who may be responsible for any unpaid taxes.
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