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 the payments received as the result of the retroactive indexing of benefits under the MPTAP would be taxable.
Position: No.
Reasons: Amounts received under the MPTAP are not taxable and the retroactive indexing of these payments would also not be taxable.
2001-009201
XXXXXXXXXX A. Seidel, CMA
(613) 957-2058
September 7, 2001
Dear XXXXXXXXXX:
Re: Multi-Provincial/Territorial Assistance Program
This is in reply to your letter, dated July 10, 2001, in which you requested our views concerning the tax treatment of additional amounts to be received pursuant to the Multi-Provincial/Territorial Assistance Program ("MPTAP").
The Minister of Health for the Province of Ontario has announced that the benefits provided under the MPTAP will be indexed for inflation and that this indexing will be retroactive to the beginning of the MPTAP.
Provided that there are no other amendments to the agreements previously entered into between the participants in the program and the respective provinces, it is our view that the additional amounts to be received by the participants as the result of the indexing of the MPTAP benefits will not be included in computing their income for income tax purposes.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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