Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Tax treatment of Alberta flood relief assistance payments.
Position: No immediate tax consequences for payments respecting personal losses.
XXXXXXXXXX
2013-049442
K. Robinson
June 27, 2013
Dear XXXXXXXXXX:
Re: Request for Comments Alberta Flood Relief
It was a pleasure to speak with you on Tuesday June 25, 2013 concerning the income tax treatment of payments to be made by the Government of Alberta to individuals in order to provide relief from the recent devastating floods.
While we understand and appreciate that the specific details of the financial relief to be provided to individuals are still evolving, in general, we can confirm that disaster assistance payments made by a government, municipality or public authority to individuals in respect of an individual's personal losses or expenses, as opposed to business expenses, would not be included in the recipient's income for income tax purposes.
For instance, in the past we have confirmed that payments to individuals from a government for temporary housing and meals during the disaster do not have to be included in income. We have also confirmed that government compensation received for loss or damage to an individual's personal residence does not ordinarily result in any income tax consequences. We note that any costs incurred in respect of personal expenses would not be deductible for income tax purposes in any event.
Please be assured that we will provide any assistance we can during these difficult times. Should you have any questions or would like to discuss this further, please do not hesitate to contact me.
Yours truly,
Mickey Sarazin
Director General
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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