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.
| 19(1) |
File No. 900358 |
| |
J.D. Jones |
| |
(613) 957-2104 |
June 26, 1990
19(1)
Re: Open Custody Homes - Young Offenders Act
This is in reply to your letter of April 3, 1990, wherein you requested our opinion on the income tax treatment of payments received by an individual for providing care and lodging to open custody young offenders.
As we understand the situation, your Department enters into a contract with an individual to provide an alternative open custody home for youths between the ages of twelve and eighteen years who have been sentenced to open custody under the Young Offenders Act of Canada or the Young Offenders Act of the North West Territories. The maximum number of young offenders in any one home is usually two but can go as high as four in some cases.
In return for providing care and supervision of a youth in an environment which promotes the social, emotional, intellectual and spiritual growth of the youth, the individual receives an allowance of $200 per month plus $55 per day for each youth staying in the home. The $200 allowance is paid whether or not there are any youths staying in the home.
You wish to know if the above payments would be considered to be income in the hands of the individual.
Based on the above information and the sample contract attached to your letter, it is our view that payments as described above to an individual must be included in income only if the individual is carrying on a business of providing these facilities with a view to earning a profit therefrom.
We hope that our comments will be of assistance to you. If you have any further questions concerning this matter, please do not hesitate to contact us.
Yours truly,
for Director Business and General DivisionRulings 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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