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: Income tax treatment of payments to participants under Youth Service Canada program.
Position: Amounts received are taxable.
Reasons: Participants enter into a contract to provide services for which they receive a weekly stipend and a completion bonus. This question was addressed on September 16, 1994 in letter 941956.
May 15, 2000
Client Services Directorate HEADQUARTERS
Accounts Receivable Division David Shugar
957-2134
Attention: Richard Gendron
2000-002024
XXXXXXXXXX - Youth Service Canada Program
In response to your request of April 13, 2000, we are providing you with the following insert to be included in your reply regarding the taxation of payments under the Youth Service Canada program.
"An individual participating in the Youth Service Canada program is not considered to be in an employee/employer relationship. However, the individual has entered into a contract to provide services and receives payment in the form of the weekly stipend and completion bonus in payment for such services. Accordingly, such payments are to be included in computing the participant's income for tax purposes."
The taxation of payments under the Youth Service Canada program (the Program) was addressed by Rulings Directorate in a memorandum dated September 19, 1994 to Pierre Paquette of CPP/UI Programs, Source Deductions. A copy of that memorandum is enclosed. The memorandum suggests that in 1994, CPP/UI Programs may have responded to HRDC concerning withholding and reporting requirements on payments under the Program. Regarding the observation by XXXXXXXXXX that not all of the Programs give out T-4s (or T-4As), you may wish to follow up with CPP/EI Eligibility Division to obtain a copy of that letter.
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
Attachment
cc: Remi Coté
CPP/EI Eligibility Division
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