Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether awards are income from employment under 5(1) or as research grants under 56(1)(o).
Position: The awards are income from employment.
Reasons: In our previous opinion regarding these awards given in our letter of December 20, 1999 we said the awards were employment income. Since then, the Centre changed the wording of the award agreements but the changes do not substantively alter the nature of the employer/employee relationship between the Centre and the awardees. Our comments in our previous letter still apply. International section will reply regarding the taxation of non-resident recipients.
IDRC International Development
250 Albert Street 2000-000498
P.O. Box 8500 David Shugar
Attention: Ms Rita Bowry
March 29, 2000
Dear Ms Bowry:
Re: Awards and Research Grants
We are writing in reply to your letter of December 13, 1999 requesting our views on the taxation of the revised Centre Internship Award and the Professional Development Award taking into consideration the modifications made to the awards.
The documentation you provided regarding the revised awards was forwarded to our Trust Accounts Division to determine whether a master/servant relationship exists between the parties. We have received their comments and can provide you with our views concerning the taxation of the awards when received by residents of Canada. As stated in our previous letter, our International Section will provide you with comments regarding the taxation of the awards received by non-residents of Canada.
The changes made to the awards do not substantively alter the nature of the relationship between the recipient of the award and the International Development Research Centre (IDRC). The recipients remain engaged under a contract of service and are considered to be employed by IDRC. Therefore our comments under the title 'Centre Internship Award and Professional Development Award' in our letter of December 20, 1999 still apply.
The income should be reported as employment income in Box 14 of the T4 slip.
We trust our comments will be of assistance to you.
Roberta Albert, CA
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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