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.
June 8, 1999
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to respond to your letter of March 7, 1999, regarding the taxation of interest on retroactive payments of workers’ compensation benefits. I regret any confusion over responsibility for the issue you have raised. The Minister of Finance is responsible for the policy aspects of the Income Tax Act while the Minister of National Revenue is responsible for its administration.
Although the confidentiality provisions of the Income Tax Act prevent me from discussing specific situations, I can confirm that the Department has a long standing position that interest on retroactive benefits from a Workers’ Compensation Board is not taxable. This position is stated in the current version of the T5007 Guide, Return of Benefits, which provides information on the reporting of such benefits.
I trust this explains the Department’s position on this matter.
Yours sincerely,
Bill McCloskey
Assistant Deputy Minister
Policy and Legislation Branch
D. Duff
April 28, 1999
991050
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