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 a part of facility in which the cared-for individuals reside considered the principal place of residence of the care-givers.
Position: No.
Reasons: Cared-for individuals do not reside in part of facility that is considered the caregivers principal place of residence.
September 28, 1999
Individual Programs Section HEADQUARTERS
Programs Division Wm. P. Guglich
Client Services Directorate (613) 957-2102
Attention: Rick Owen
991804
Paragraph 81(1)(h) - Principal Place of Residence
Social Assistance Payments for Care of Foster Children
In your June 25, 1999, inquiry you requested our views regarding the meaning of the term "principal place of residence" as used in subparagraph 81(1)(h)(ii) of the Act.
The XXXXXXXXXX (the "Society") has two types of caregivers namely Group A Caregivers and Group B Caregivers.
Group A Caregivers
These caregivers are paid a fee for service to provide long-term care. The facility in which the care is provided and where the cared-for individuals and the caregiver live is supplied by the Society. When a caregiver terminates his/her services, the cared-for individuals do not move to an alternative residence. It is the caregiver who moves out; the cared-for individuals stay. A facility provides care to 1 to 4 individuals at any particular time. The caregivers live with these cared-for individuals full-time as substitute parents. The caregiver's fee for service ranges from $XXXXXXXXXX to $XXXXXXXXXX annually.
Group B Caregivers
These caregivers provide short-term care of 6 weeks duration. The facility in which the care is provided is supplied by the Society. Day shifts are staffed with nurses and child and youth-care counsellors. Night shifts are staffed with live-in caregivers who also provide homemaking during the day. The Society indicates that these caregivers live in the facility 60%, 24 hours a day/7 days of the week. The caregivers receive from $XXXXXXXXXX to $XXXXXXXXXX annually. Each home has 2 youth residents.
Each caregiver is provided with a private bedroom furnished with his or her own furniture that is not used by anyone else at any time. Caregivers move in, bringing personal effects with them, including their pets, etc. The caregivers do not own or rent the facility. The caregivers can at their discretion stay in the home on their time off. The practice varies and often depends on whether the caregiver can afford a respite place.
The Society contends that in the case of both group A and group B, the facility is the caregivers' principal place of residence.
Your Position
It is your view that neither the group A nor the Group B caregivers meet the conditions in subparagraph 81(1)(h)(ii) of the Act. That is, the cared-for individuals would not be considered to reside in the caregivers' principal place of residence and neither is the caregivers' principal place of residence considered to be maintained for use as the residence of the cared-for individuals.
Subparagraph 81(1)(h)(ii) of the Act requires that the cared-for individual(s) must reside in the caregivers' principal place of residence or the caregivers' principal place of residence must be maintained for use as the residence of the cared-for individual(s).
Place of residence is where the taxpayer regularly, normally or customarily lives. Principal means chief or main. The adjective principal in the term principal place of residence is only relevant when the taxpayer has more than one place of residence. Where an individual only has one place of residence that place of residence would be the principal place of residence.
The facility provided by the Society cannot be considered the principal place of residence of the caregivers. The principal place of residence of the caregivers would be that part of the facility that they live in (i.e., the private bedroom) and not the whole facility. The situation of the caregivers is analogous to a taxpayer who occupies one suite in a multiple family building. The taxpayer's residence would be the suite he\she lives in and not the whole building.
We agree with your view that, for purposes of subparagraph 81(1)(h)(ii) of the Act, the cared-for individuals would not be considered to reside in the caregivers' principal place of residence, and the caregivers' principal place of residence would not be considered to be maintained for use as the residence of the cared-for individual(s).
We trust our comments will be of assistance.
John Oulton
Manager
Business, Property and Employment Section III
Business and Publications Division
Income Tax Rulings and
Interpretations 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, 1999
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, 1999
Email this Content