Principal Issues: What is the tax treatment of monthly benefit payments to families under the XXXXXXXXXX Employment Incentive (XXXXXXXXXX) program and how to report it?
Position: Likely included in the recipients income under paragraph 56(1)(u) with an offsetting deduction from taxable income, pursuant to paragraph 110(1)(f). They will be required to be reported on T5007.
Reasons: Assistance appears to be a social assistance made on the basis of a means, needs or income test.
