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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether or not the Prime Minister's Awards for Teaching Excellence in Science, Technology and Mathematics is taxable.
Position TAKEN:
It is not taxable under (56(1)(n)) because it is a prescribed prize (regulation 7700).
Reasons FOR POSITION TAKEN:
It is a "prize".
It is recognized by the general public because it is available throughout Canada, it is well publicized and it is presented to the award recipients in public events and ceremony.
It is attributed for meritorious achievement in service to the public.
It is not for services rendered or to be rendered.
E9407625 - Outstanding Canadian teacher of law.
E9208067 - Excellence in teaching among Canada's elementary and secondary school teachers.
Industry Canada
Financial Policy Directorate
Comptroller's Branch 5-951415
235 Queen Street, Room 253A A. St-Amour
Ottawa, Ontario
K1A 0H5
Attention: Paul Datars
August 3, 1995
Dear Sirs:
Re: Prime Minister's Awards for Teaching Excellence
Application of paragraph 56(1)(n) of the Income Tax Act (the "Act") and section 7700 of the Income Tax Regulations (the "Regulations")
This is in response to your letter of May 18, 1995 requesting our views regarding the taxability of the above award.
Paragraph 56(1)(n) of the Act provides that all amounts received by a taxpayer as or on account of a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by the taxpayer are included in income to the extent that the total of these amounts received in the year exceeds $500. However, this provision does not apply to prescribed prizes or to amounts received out of a registered education savings plan or to amounts that are employment or business related. A prescribed prize is defined in section 7700 of the Regulations. Such a prize is one that is recognized by the general public and that is awarded for meritorious achievement in the arts, the sciences or service to the public but does not include any amount that can reasonably be regarded as having been received as compensation for services rendered or to be rendered.
From our review of the information contained in the brochure you forwarded to us, particularly the description of the Award's concept and objective, it is our view that amounts received under this award program would be a prescribed prize and therefore does not constitute a taxable amount under paragraph 56(1)(n) of the Act.
Teachers who included these amounts in income and who wish an adjustment to a prior year's return are advised to submit the details of the request in writing, including their social insurance number and the taxation year or years involved, to the Taxation Centre serving their area.
We trust the above will be of assistance to you. If you have any questions do not hesitate to contact us.
Yours truly,
for Director
Financial Industries Division
Income Tax Ruling and
Interpretation Directorate
Policy and Legislation Branch
??
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content