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.
| |
April 23, 1990 |
| TO Provincial and International |
FROM J.A. Szeszycki |
| Relations Division |
957-2103 |
| C. Savage |
| A/Director |
| B. Fioravanti |
File No. 7-4827 |
SUBJECT: Disabled Person's Minimum Wage Protection Act
We are responding to your request that we further consider the position set out in our previous response on the subject, dated January 12, 1990. In that memorandum we expressed the view that the supplementary payments described in the Disabled Persons' Minimum Wage Protection Act ("Wage Policy") possessed the characteristics of employment income and was required to be treated as such for tax purposes. We have reviewed the matter again in light of comments you have received from Finance, Health and Welfare, and our own Source Deductions Decision.
21(1)(b)
After considering our position again it continues to be our view that the supplementary payments are in the nature of a wage top-up and should be treated accordingly. Our position is based largely on the fact that an eligible individual may be entitled to the supplementary payment despite having been denied provincial social assistance on the grounds that the means, needs, or income test has not been met. In addition, we do not consider the supplementary payment as income-tested since the only sources of income taken into account, according to the Wage Policy, are the individual's wages from that employment and his or her social assistance.
Consequently, the views expressed in our earlier memorandum, and above, reflect our current position on the matter.
B.W. DathDirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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