Why OLD AGE Security uses the net income instead of the much lower taxable income to calculate the GIS and allowances?

[vifra]

For my  2016-17 GIS and my wife's allowance ( based on the 2015 fiscal year),  I just discovered that the Old Age Security people have  not used my taxable income, but the NET INCOME, ignoring a substantial deduction  for preceding years capital losses, a deduction that has  has been allowed by revenue Canada and reflected in my Notice of assessment . 

This makes a substantial difference in our GIS/Allowance. 

Usually the taxable income is the same as the net income, but in my case I was entitled to that deduction and the taxable income should apply..

Why hasn't Old Age Security  used my REAL taxable income to calculate GIS/Allowance? Who is right? 

I have repeatedly seen Service Canada Montreal  for explanations since July 2017. I wrote a letter in December 2017 and a second one in January 2018. I also  called the toll-free number. Never understood their verbal explanations, never received a written explanation either,  just a verbal run around. 

Are these people  working on commission to deprive low income citizens of what is due to them? They say that their way of calculating the revenue for GIS/Allowance is different from that of the ARC . How so? ? 

I intend to request a reconsideration, even at the cost of bringing the case before the Social Security Tribunal, but in order to do this I need to be referred to    specific laws or regulations to this effect?  Can anybody help or explain?

Thanks for your reply. 

Franco V.

[TurboTaxMary-Ann1]

I'm very sorry for the inconvenience to you, however, it is Service Canada that you will need to contact.  Unfortunately, TurboTax does not have any bearing on how Old Age Security is calculated.

[vifra]

Thanks. This is the 1st thing  I had  done, of course!.

Unfortunately, they operate , at least here in Quebec, with a remarkable lack of transparency, typical of the old European Borbonic administration ( if you know what I mean), i.e. that the government decides and they don't owe  any explanation to the citizen, unless you go through the official  lengthy channel of submitting a  formal request of reconsideration ( which I am about to do).

When the Old Age Security public servant informed me by phone that they calculate, by law, the income  differently from Revenue Canada, I asked him to to refer me to the specific law or regulation to this effect. He was unable to do it ( of course!), so I  asked him to provide this information in their letter  of refusal.  When I received the official letter, naturally, this information was not there.  

I then carefully read the Income Tax Act, the Income Tax Regulations, the Old Age Security Law and Regulations  and I could find absolutely no provision justifying a different way of calculating income for O.A.S. purposes.  

To the contrary,  the Old Age Security Act  O.A.S. ACT, (SECTION 13, G.I.S.). says explicitly  that :
Quote FOR OAS PURPOSES, THE MEANING OF INCOME  IS ACCORDING TO THE Income Tax Act. Unquote

I thought  you may be interested to know this, in case somebody else asks the same question.

Thanks

Franco V.