How has the court treated a claimant’s past income loss damage award for the past year?

First, the court could have been directed to make a reasonable deduction, without reference to a formula, for tax that would likely have been paid had the amount of the past lost income award been earned as income pro-rated over the period on an average monthly basis. Second, the court could have been directed to make a reasonable deduction computed by applying the claimant’s average tax rate in one or more years preceding the year of the accident to the gross amount of the award. That was the approach followed in Solowoniuk v. Marsh, [2000] B.C.J. No. 2669 (S.C.). Finally, the court might have been directed to pro-rate the past income loss damage award over the period on a monthly basis and thereafter to calculate the amount of additional income tax that would have been paid had the amount allocated to each year been included in income.