CRA rules that lump-sum assistance paid to a member of a religious community, who had taken vows of poverty, on his return to secular life, is not income

A member of a religious order, who (along with all the other members) had taken vows of perpetual poverty, would receive a lump sum gift, upon his departure from the community after having decided to return to the secular world, as assistance to compensate for his lack of financial resources (resulting from such vow). The departure amount is determined as: a basic amount plus an additional amount for each year spent in the order; and an amount for each qualifying year the member did not contribute to a pension or retirement plan.

CRA ruled that the lump sum was not includible in his income

Neal Armstrong. Summary of 2021 Ruling 2021-0894621R3 F under s. 3(a).