Principal Issues: 1. Are scholarships provided by the Government of Japan to Canadian students taxable? 2. Is part-time employment income earned in Japan by Canadian students taxable? 3. If taxable, is the income to be reported annually? 4. Does the student need to obtain any particular forms from the Government of Japan in respect of the scholarships? 5. Does the student need to obtain any particular forms from an employer in Japan in respect of part-time employment income?
Position: 1. Yes, if student is a resident of Canada, but may be fully exempted pursuant to subsection 56(3). 2. Yes, if student is a resident of Canada. 3. Yes. 4. No. 5. No.
Reasons: 1. Scholarship income included in income pursuant to paragraph 56(1)(n) and scholarship exemption provided for pursuant to subsection 56(3). 2. Residents of Canada are liable to tax on their worldwide income. 3. Income is reported for a tax year. 4. A resident of Canada is responsible for reporting scholarship income in excess of the scholarship exemption, whether or not a T4A is received from the payer. 5. A resident of Canada is responsible for reporting foreign employment income, whether or not a T4 slip is received.
