Subsection 81(1) - Amounts not included in income
Paragraph 81(1)(a) - Statutory exemptions
Cases
The Queen v. AEL Microtel Ltd., 86 DTC 6348, [1986] 2 CTC 108 (FCA)
The intention of Parliament to exempt the amount of a development incentive from income tax is not frustrated by taking the amount into account...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | 82 |
See Also
Lapierre v. The Queen, 2019 TCC 18
The taxpayer, who was an employee of the International Security Assistance Force (ISAF) in Afghanistan serving as an international civilian...
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 8900 - Subsection 8900(1) - Paragraph 8900(1)(b) | UN-authorized agency was not a UN agency | 131 |
| Tax Topics - Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(f) - Subparagraph 110(1)(f)(iii) | a Canadian resident working for a UN-authorized agency in Afghanistan was not exempted | 110 |
Administrative Policy
26 August 2015 External T.I. 2015-0564171E5 F - Paiements d'un RPAC à un Indien
Respecting a question on the possibility of reducing income tax source deductions where payment is made to a member of a pooled registered pension...
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| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) | procedure for reduced withholding on pension distributions to status Indian | 193 |
9 April 2013 External T.I. 2012-0461051E5 F - Employee of an international organization
A Canadian citizen and resident is working with an organization that provides services with an unidentified relationship with the mandate of the...
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| Tax Topics - Income Tax Regulations - Regulation 8900 - Subsection 8900(1) - Paragraph 8900(1)(b) | organization was not a specialized agency related to the UN | 114 |
| Tax Topics - Income Tax Act - Section 126 - Subsection 126(3) | credit for local taxes imposed on salary of Canadian resident working for an international organization | 241 |
4 December 2007 Internal T.I. 2007-0255041I7 F - Employé de l'OTAN
Regarding whether a NATO employee working outside Canada would be exempted having regard to Article 19 of the Agreement on the status of the North...
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| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Earned Income | income exempted under s. 81(1)(a) is not added to earned income | 52 |
9 January 2001 External T.I. 2000-0053445 - Non-resident treaty-exempt income
Where a non-resident corporation derives income or a capital gain which is exempted from tax under Part I by a treaty, s. 81(1)(a) provides that...
Paragraph 81(1)(c) - Ship or aircraft of non-residents
Cases
Furness Withy & Co. Ltd. v. MNR, 66 DTC 5358, [1966] CTC 482 (Ex Ct), aff'd 68 DTC 5033, [1968] CTC 35, [1968] S.C.R. 221
The taxpayer, which was a resident of the U.K. and carried on an international shipping business both directly and through subsidiaries, provided...
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|---|---|---|
| Tax Topics - General Concepts - Evidence | 210 | |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) | deduction of head office expenses | 137 |
Administrative Policy
24 December 2015 Internal T.I. 2014-0560831I7 - International shipping
The Taxpayer is a non-resident corporation that carries on business in many countries, including Canada. The activities of the non-resident...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Shipping | lease includes time charter | 67 |
16 June 2014 External T.I. 2013-0515431E5 - International traffic and airline enterprise
During peak season, Canco, which transports passengers to destinations inside and outside Canada, is supplied planes, and non-resident pilots and...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) | application of Sutcliffe/Price allocation approach were s. 115(3) not applicable | 150 |
| Tax Topics - Income Tax Act - Section 115 - Subsection 115(4) | non-resident's provision of crew and aircraft to Canadian airline | 150 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Traffic | non-resident's provision of crew and aircraft to Canadian airline | 109 |
| Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) | Reg. 102 withholding or waiver notwithstanding Treaty exemption | 166 |
| Tax Topics - Treaties - Income Tax Conventions - Article 15 | U.K company's provision of crew to Canadian airline/Reg. 102 withholding or waiver notwithstanding Treaty exemption | 291 |
4 June 1996 T.I. 96 1114
General discussion.
4 May 1995 External T.I. 9511825 - SHIPPING INCOME - RESIDENTS OF GREECE
"As it is our understanding that Greece continues to exempt residents of Canada from its Freight Tax on the basis of the bilateral arrangement...
June 1992 Hong Kong Seminar (May 1993 Access Letter, p. 227)
"Income from the operation of a ship" does not include a capital gain from a disposition of the ship, nor will the capital gain be included in...
92 C.M.TC - Q.6
"Income from the operation of a ship" does not include a capital gain from the disposition of the ship.
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (b) | internationl ship | 18 |
2 July 1991 T.I. (Tax Window, No. 5, p. 15, ¶1326)
The foreign country will be considered to grant substantially similar relief if it does not impose an income tax, or if the income from the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 4 | |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(1) | 51 |
Articles
Michael Shields, "Taxation of International Shipping Companies in Canada", International Tax (Wolters Kluwer CCH), No. 88, June 2016, p. 1
General non-imposition is substantially similar relief (p.2)
The country in which the foreign company is resident must provide "substantially...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - International Shipping | 82 | |
| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 305 |
Owen, "Tax Issues in International Shipping", 1993 Canadian Tax Journal, Vol. 41, No. 4, p. 724.
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| Tax Topics - Income Tax Act - Section 250 - Subsection 250(6) | 0 |
Lang, "Taxation of International Aviation: A Canadian Perspective", 1992 Canadian Tax Journal, No. 4, p. 881.
Paragraph 81(1)(d) - Service pension, allowance or compensation
Administrative Policy
13 August 2008 External T.I. 2008-0286341E5 F - Pension d'invalidité reçue de la GRC
After quoting from IT-397R, CRA concluded that a disability pension to be received pursuant to the Royal Canadian Mounted Police Superannuation...
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| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(i) | pension under s. 11(2) of the RCMP Superannuation Act would not be exempt | 115 |
5 July 2013 Ministerial Correspondence 2013-0489561M4 - Taxation of the Veterans Independence Program
Under a recent change in the Veterans Independence Program, recipients would get lump sums to pay vendor invoices rather than sending the invoices...
Paragraph 81(1)(e) - War pensions
Administrative Policy
10 July 2014 External T.I. 2014-0529791E5 - Pension income arising in Hong Kong
Respecting the treatment of a Hong Kong War Memorial Pension received by a resident of Canada, CRA stated: we would consider a pension received...
Paragraph 81(1)(g.1) - Income from personal injury award property
See Also
Saunders v. The Queen, 2020 TCC 114 (Informal Procedure)
The three taxpayers, who were team leaders in the Revenue Collections Division of the CRA’s Calgary Tax Services Office, were awarded a lump sum...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | award pursuant to lost overtime grievance was taxable under surrogatum principle | 156 |
Administrative Policy
20 June 2023 STEP Roundtable Q. 16, 2023-0961321C6 - Damages in Respect of Personal Injury or Death
The child of parents killed in an accident receives an award as a consequence. Is the income from the award exempted under ss. 81(1)(g.1) and...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(c) | a damages annuity to a child for a parent’s death would generally need to be under a structured settlement to be exempt | 159 |
16 June 2003 Internal T.I. 2003-0007867 F - COMPENSATION LORS DU DECES D'UN PARENT
Following the death of their mother in a road accident, two minor children each received a lump sum payment from the Quebec Automobile Insurance...
28 January 1992 Memorandum (Tax Window, No. 16, p. 17, ¶1723)
A lump-sum payment received by an individual through a consent to judgment of the Supreme Court of Canada as a result of his claim for...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(f) | 52 |
Paragraph 81(1)(h) - Social assistance
See Also
Norton v. The Queen, 2009 DTC 1102 [at 558], 2008 TCC 91, aff'd 2010 DTC 5090 [at 6898], 2010 FCA 138
The taxpayer resides at and operated two special care homes. Subsidies which she received from the Province of New Brunswick to cover part of the...
Administrative Policy
16 December 2004 Internal T.I. 2004-0100891I7 F - Prestations d'assistance sociale
The Taxpayer received funding from a Regional Board of Health and Social Services pursuant to a Quebec provincial non-institutional resources...
12 May 2004 Internal T.I. 2004-0061071I7 F - Assistance sociale - Famille d'accueil
The Ministère de la Santé et des Services sociaux du Québec (the "MSSS"), which through MSSS, through public institutions ("PIs"), may directly...
11 July 2002 External T.I. 2002-0126795 F - RESSOURCES INTERMEDIAIRES REVENU EX
CCRA noted:
[W]e have determined in the past that a contribution paid by an institution to a family-type resource or an intermediate resource...
20 October 2001 External T.I. 2003-0007015 F - RESSOURCE INTERMEDIAIRE
An individual employed by a Quebec public institution received compensation pursuant to the Act respecting health services and social services for...
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| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | amounts received for accommodating disabled individuals in the taxpayer’s home would not engage s. 45(1)(c) if they were exempted under s. 81(1)(h) | 173 |
19 March 1992 Memorandum (Tax Window, No. 18, p. 17, ¶1821)
Amounts paid to a care giver to cover the room and board of a handicapped person are not included in his employment income.
See also ¶1850.
Paragraph 81(1)(i)
Administrative Policy
13 August 2008 External T.I. 2008-0286341E5 F - Pension d'invalidité reçue de la GRC
Regarding whether a disability pension to be received pursuant to the Royal Canadian Mounted Police Superannuation Act ("RCMPSA") would not be...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(d) | RCMP disability pension would not fall within s. 81(1)(d) | 34 |
Subsection 81(2) - M.L.A.‘s expense allowance
Administrative Policy
83 C.P.T.J. - Q.24
Any allowances received by a member of a legislative assembly (or by an municipal officer) that reimburse her for expenses considered to be...
6 August 1992 T.I. 921792 (April 1993 Access Letter, p. 143, ¶C76-065)
A per diem allowance of $100 would not qualify for exemption.
Subsection 81(3) - Municipal officers’ expense allowance
Cases
Bellrose v. Canada, 2012 DTC 5068 [at 6922], 2012 FCA 67
The Court found that the Métis Nation of Alberta Association ("MNAA") was not an incorporated municipality. Although MNAA was incorporated under...
Administrative Policy
26 June 1995 External T.I. 9503215 - MUNICIPAL OFFICER'S EXPENSE ALLOWANCE
Taxable benefits such as the automobile standby charge are not considered to be amounts "paid" as salary or other remuneration as required by the...
Subsection 81(3.1)
Administrative Policy
27 March 2012 External T.I. 2011-0423851E5 F - Allocations pour frais de déplacement
Some employees are partially released from their regular employment in order to fulfill their duties in the course of a part-time office and, as...
S2-F3-C2 - Benefits and Allowances Received from Employment
Part-time employment
2.50 Subsection 81(3.1) excludes from a part-time employee’s income reasonable allowances for, or reimbursements of, travel...
21 June 2010 External T.I. 2010-0355971E5 F - Montants versés à des administrateurs
A not-for-profit organization described in s. 149(1)(l) (the “Organization”) operates in two different regions and maintains two...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | payment of accommodation, travel and meal expenses for attending directors’ meeting out of the region likely not a benefit, but tickets to events likely taxable | 341 |
16 December 2002 External T.I. 2002-0138195 F - ALLOCATION POUR FRAIS DE DEPLACEMENT
Prior to the amalgamation of two financial institutions, an employee, who held a part-time job at each, received a travel allowance paid to him by...
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| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) | travel allowance for travel 40% of the employment days between home and a more remote employer situs was for personal travel | 151 |
Subsection 81(4)
Administrative Policy
15 August 2012 External T.I. 2012-0444461E5 F - Pompiers volontaires
In finding that firefighters in a particular town were not entitled to the credit, CRA stated:
According to the Proceedings of the Standing...
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| Tax Topics - Income Tax Act - Section 118.06 - Subsection 118.06(1) | not a “volunteer” if paid more than a minimal amount or minimum hours are required | 232 |
7 July 2009 External T.I. 2008-0267941E5 F - Pompiers volontaires
After noting that although normally, a “volunteer” (i.e., someone who would not receive any benefits from the municipality as employment or...
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| Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) | someone normally is a “volunteer” rather than employee if any compensation is too small to be motivating | 96 |
2 October 2003 Internal T.I. 2003-0031747 F - paiement pour service de volontaire
CCRA indicated that the amount that may be excluded from an individual’s income for a year pursuant to s. 81(4) is $1,000 times the number of...