CRA indicates that worker’s compensation received by an estate was includible in its income

CRA indicated that since s. 56(1)(v) requires an income inclusion for "compensation received under an employees’ or workers’ compensation law … of a province in respect of an injury,” compensation received by the estate of an injured (and then deceased) worker pursuant to the Ontario Workplace Safety and Insurance Act was includible in its income (although there was a deduction in computing taxable income pursuant to s. 110(1)(f)(ii).) However, CRA noted:

[A]s compensation payments are not considered salary, wages, or other remuneration, they are not subject to the withholding of income tax, Canada Pension Plan contributions, and Employment Insurance premiums, irrespective of the recipient.

Neal Armstrong. Summaries of 11 March 2024 External T.I. 2022-0939331E5 under s. 56(1)(v) and s. 153(1)(a).