CRA rules that lump sum settlement payments made under a CCAA plan to private health services plans claimants were non-taxable to them.

CRA has ruled that lump sum payments, made under a CCAA plan to former employees in settlement of their claims respecting private health services plans of which they had been beneficiaries, were non-taxable to them – although they would not be able to claim medical credits until their cumulative expenses exceed the payment received.

Neal Armstrong. Summary of 2014 Ruling 2013-0514561R3 under s. 6(1)(a).