CRA finds that compensation received by residential tenants from a developer to compensate them for their dislocation costs was non-taxable

The City required a developer to pay tenants, whose units in a residential complex were to be replaced or renovated, (at their option) lump sums to compensate them for their moving and relocation expenses, or a supplement equal to their additional rental cost (subject to a cap) while they were awaiting a return to the developed complex – without being subject to any means testing. CRA concluded:

[I]t does not appear that these amounts would constitute income from a source, including social assistance under paragraph 56(1)(u) ... .

Neal Armstrong. Summary of 4 October 2019 External T.I. 2019-0825431E5 under s. 3.