21 March 2003 Internal T.I. 2003-0007497 - CHILD IN THE HOME OF A RELATIVE

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues:

Whether paragraph 81(1)(h) applies to amounts received for care of nieces and nephews in home under Child in the Home of a Relative program.

Position TAKEN:

Referred to Vancouver Island TSO

Reasons FOR POSITION TAKEN:

Question of fact.

		March 21, 2003

Ms. Leslie Green	HEADQUARTERS
	Team Leader, PRP/Special Services 	T. Young
	Vancouver Island Tax Services Office 	(613) 952-1506
	1415 Vancouver Street
	Victoria BC  V8V 3W4
		2003-000749

Paragraph 81(1)(h) - Child in the Home of a Relative

Further to our conversation of March 18 (Green/Young), we are referring the enclosed correspondence to you for reply to the clients. Their request concerns whether paragraph 81(1)(h) of the Act applies to amounts they received under the Child in the Home of a Relative program for care of nieces or nephews.

In our initial review of the request, we noted that the question of whether the children are related to XXXXXXXXXX might be key to the determination. To that end, paragraph 252(1)(b) of the Act may deem the nieces and nephews to be children of XXXXXXXXXX for purposes of the Act. If so, the requirements of paragraph 81(1)(h) would not be met and the amounts received would likely be taxable pursuant to paragraph 56(1)(u) of the Act.

If you have any questions or if we may be of any assistance, do not hesitate to contact

Terry Young at (613) 952-1506.

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch

Enclosure