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.
Principal Issues: Why does the CHMC not recognize a housing allowance as income if the CRA includes such an allowance in a taxpayer's taxable income under the Income Tax Act?
Position: General comments provided.
Reasons: Suggested the taxpayer contact the CMHC directly for more information on the CMHC's policies.
XXXXXXXXXX
House of Commons
Dear Colleague:
Thank you for your correspondence of May 20, 2011, written on behalf of your constituent, XXXXXXXXXX , concerning the Canada Mortgage and Housing Corporation (CMHC) and whether it will consider as income a wage supplement and housing allowance received from XXXXXXXXXX 's employer for living in XXXXXXXXXX .
The Canada Revenue Agency (CRA) is responsible for administering Canada's tax laws to ensure that taxpayers receive the benefits to which they are entitled and that they pay their proper share of taxes under the Income Tax Act. A wage supplement and housing allowance received by an employee working in a northern area must be included in his or her employment income unless specifically excluded under the Act. However, it appears that your main concern is not the taxability of such amounts but rather the CMHC's calculation of income for mortgage purposes. I suggest you contact the CMHC directly or the minister responsible, the Honourable Diane Finley, Minister of Human Resources and Skills Development, for more information on the CMHC's policies.
As a northern resident, your constituent may be entitled to the northern residents deductions for certain travel benefits and living costs. More information on the northern residents deductions is available on the CRA Web site at www.cra.gc.ca/northernresidents.
I trust that the information I have provided is helpful.
Yours sincerely,
Gail Shea, P.C., M.P.
Tom Posadovsky
613-952-8283
2011-041371
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2011
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2011