12 September 1989 Income Tax Severed Letter AC 9086A F - Reporting Requirements for Workers' Compensation Payments

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.

We are writing in reply to your letter of July 21, concerning the reporting requirement of certain compensation received from the Commission.

It is our opinion that payments from the Commission for:

(a)      Dependency Benefits paid to a surviving spouse;

(b)      Death Benefits;

(c)      Permanent Functional Impairment Award;

(d)      Extended Earnings Loss Benefits; and

(e)      Permanent Partial Disability Payment;

are to be reported pursuant to paragraph 56(1)(v) of the Income Tax Act as compensation received in respect of an injury, disability or death.

The intent of the proposed regulation is to carve-out medically-related payments to others and, generally, payments that cannot be regarded as providing for daily living requirements or as income replacement as set out in our letter of June 27.  Accordingly, the above listed payments do not, in our view, meet this criteria.

For the 1989 year, the Department is prepared to accept your best efforts with respect to requiring social insurance numbers.  Our present system is not capable or providing social insurance numbers where the taxpayer's name is supplied.

We appreciate your co-operation in this matter and if we can be of any further assistance please contact the writer.

Yours sincerely,

C. Savage A/Director Provincial and International Relations Division

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