CRA states that wage-reimbursement payments received by employers were s. 9 income

A BC government program required employers to pay wages in specified circumstances of employees who stayed home for COVID-related reasons – but then reimbursed the employer for all or a portion of this wage cost.

CRA indicated that these reimbursement payments were included in the employers' income under s. 9 (no need to resort to s. 12(1)(x)) and that the payments to the employees were includible in their income under s. 5(1).

Neal Armstrong. Summaries of 2 December 2021 External T.I. 2021-0898441E5 under s. 9 – expense reimbursement and s. 5(1).