29 March 1990 Ministerial Letter 59598 F - Immigrant's Deductions

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.

March 29, 1990

Dear Sirs:

Re: Immigrant's Deductions

This is in reply to your letter of February 6, 1990, wherein you requested our comments concerning deductions available to immigrants in the following situation.

Many immigrants from refugee camps receive a loan from the Government of Canada for travelling expenses incurred in immigrating to Canada. in addition, upon arrival, they may also receive another loan in order to assist them in establishing themselves in Canada. These loans must be repaid, without interest, when they receive income from an office or employment.

Based upon the above, you have asked for opinion on whether the repayment of the government loan is deductible from employment income in the year the loan is repaid.

We advise that it appears to us that the loans received by the individuals and the Government of Canada are in respect of personal or living expenses and, accordingly, the deduction from income of the repayment of these amounts is not an allowable deduction for income tax purposes. Accordingly, we are of the view that no amount paid in respect of the repayment of the loans is deductible from income under the Income Tax Act.

We trust our comments are of assistance to you.

Yours truly,

for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch