Several employees working for a firm contracted by the Nova Scotia government to provide care for vulnerable individuals and children claim they have been treated unfairly. They allege that Arden Professional Client Care misled them for years by stating that their wages were not subject to taxes, even going as far as documenting this assertion.
Steve Keddy, a retired teacher and school principal who works for Arden, expressed feeling like a scapegoat in the situation. He mentioned that many workers, including himself, were under the impression that their pay from Arden was tax-free.
Arden receives funding from the provincial Department of Opportunities and Social Development and has received over $184 million in public funds over the past eight years, as per provincial government financial records.
The company chose not to provide a comment regarding this matter.
Keddy and numerous other employees believed that their earnings from Arden were exempt from taxes. Upon joining the company seven years ago, Keddy mentioned that during his orientation, he was informed about taxes but was led to believe that his pay fell under a non-taxable category based on a specific section of the tax law.
Various workers who spoke to CBC anonymously to provide additional context corroborated Keddy’s account. An online petition signed by a significant number of individuals indicates that Arden employees were initially under the impression that their compensation was tax-exempt.
Following a Canada Revenue Agency (CRA) audit announced by Arden in March, Keddy took the initiative to create a petition, which has been submitted to local representatives and the federal taxpayers’ ombudsperson.
Arden had not issued tax documentation for previous years and classified its workers as independent contractors. The company clarified to CBC News that it does not offer personal income tax advice to its employees, who are responsible for their tax decisions.
‘We all believed that everyone knew what they were doing’
Keddy recalled that around five years ago, Arden management requested employees to sign contracts stating they were independent contractors responsible for “applicable taxes.”
CBC reviewed examples of Arden contracts from 2021 containing similar language.
Keddy mentioned that since Arden did not collect his social insurance number or provide tax slips after the contract signing, he assumed his income was tax-free and continued working accordingly.
He emphasized the significance of the substantial public funds involved and the hundreds of individuals working under the belief that their income was not taxable, supported by a contractual agreement with the provincial government.
“We all presumed that everyone was aware and that it was not subject to taxation,” Keddy stated.
Wage described as ‘non-taxable’ in writing
A couple of years after signing the contract, Keddy requested a letter from Arden to verify his income for loan refinancing purposes.
He shared a copy of the letter with CBC, signed by Arden’s vice-president, which described his $19.50 per hour wage as a “non-taxable wage.”
Keddy mentioned that receiving this letter in 2023 solidified his belief that his income was not taxable.
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CBC acquired copies of five similar letters from independent sources, with different names, pay amounts, and dated between 2023 and 2025. Two workers directly verified receiving such letters from Arden management when required for income verification.
All letters referred to the wage as “non-taxable.” Keddy mentioned that some colleagues also shared their letters with him.
“This is not an isolated incident,” he remarked. “Numerous letters
