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.
House of Commons
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.
Gail Shea, P.C., M.P.
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