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.
XXXXXXXXXX
Attention: XXXXXXXXXX
Dear Sirs:
RE: Big Game Damage Compensation Program
This is in reply to your letter of August 20, 1993 requesting a ruling that confirms your understanding that payments to farmers/producers who have incurred a loss due to big game depredation on field crops and stored forage resources are taxable and would be treated as a grant and reported in Box 14 of the draft T7AGR.
OUR COMMENTS
We confirm your understanding that payments under the Big Game Damage Compensation Program, in the absence of legislation making them exempt, are on account on income to the recipient. As they compensate the farmer/producer for the loss of crops and stored forage resources they would be brought into a taxpayer's business income calculation under section 9 of the Income Tax Act. In cases where this may be inappropriate such payments would be included in a taxpayer's income as an inducement, grant, or other form of assistance pursuant to paragraph 12(1)(x) of the Income Tax Act. In any event, the payments would be considered as farm support payments to be included on form T7AGR.
We trust that this is the information you require.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993