Workers at Arden Professional Client Care, a company contracted by the Nova Scotia government, are claiming they received misleading information regarding the taxability of their wages. This has resulted in potential financial hardship and a growing dispute over retroactive tax obligations.

Workers Allege Misleading Tax Advice

Many employees of Arden Professional Client Care, which provides care for vulnerable adults and children under contract with the Nova Scotia government, feel they have been unfairly treated. They allege the company led them to believe for years that their pay was exempt from income tax, even providing this information in writing.

Petition Launched to Address Concerns

Steve Keddy, a seven-year employee of Arden and a retired educator, initiated a petition to address the concerns of his colleagues. The core issue centers around the long-held understanding that their compensation from Arden was not considered taxable income. This belief was reinforced during initial orientation and through comparisons to the tax status of foster parents.

Significant Public Funding and Contractor Status

Arden Professional Client Care has received substantial public funding from the Nova Scotia Department of Opportunities and Social Development, totaling over $184 million in the past eight years. Despite this funding, workers claim they were not provided with tax slips and were classified as independent contractors.

Recent Statements and Contract Changes

Arden recently stated it does not offer personal income tax advice and that workers are responsible for their own tax decisions. However, employees argue they were actively misinformed. Approximately five years ago, workers were asked to sign contracts acknowledging their status as independent contractors and their responsibility for applicable taxes.

Discrepancies in Tax Documentation

Keddy notes that the company did not request social insurance numbers or issue tax slips after the contracts were signed, leading many to believe no taxes were due. The issue came to light when Keddy requested a letter from Arden to verify his income for a loan application.

Letters Confirming 'Non-Taxable Wage'

He received a letter, signed by Arden’s vice-president, explicitly stating his $19.50/hour pay was a 'non-taxable wage.' CBC News obtained copies of five similar letters from independent sources, dated 2023, 2024, and 2025, all using the same phrasing. Workers who received these letters have confirmed their authenticity.

Seeking Prospective Tax Application

The workers are now facing potential tax liabilities and are seeking a resolution that would apply taxes prospectively, starting in 2025, rather than retroactively. Ottawa labour lawyer Malini Vijaykumar described the term 'non-taxable wage' as an oxymoron, stating that all income earned from work in Canada is generally subject to taxation.

Arden Professional Client Care has not responded to CBC’s detailed inquiries regarding the workers’ concerns and the letters provided.