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: Are Pain and suffering Damages T-4'd?
Position: No
Reasons: Not taxable, insurable or pensionable
971093
XXXXXXXXXX C. Tremblay
Attention: XXXXXXXXXX
May 28, 1997
Dear Sirs:
Re: Pain and Suffering Damages
This is in reply to your request to confirm that amounts awarded under paragraph 41(1)(b) of the Ontario Human Rights Code for pain and suffering are not subject to tax and are not required to be reported on a T-4 statement.
In our view, general damage awards for loss of self-respect, mental anguish, humiliation or hurt feelings arising from violations or alleged violations of an employee's human rights would not be subject to tax. Further, these damage awards are not insurable or pensionable; accordingly, the amount of the damage award need not be included on a T-4 nor otherwise reported to Revenue Canada.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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