Section 81

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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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Paragraph 81(1)(c) - Ship or aircraft of non-residents

Cases

Furness Withy & Co. Ltd. v. MNR, 66 DTC 5358 (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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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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Words and Phrases
lease
Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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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...

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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.

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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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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Owen, "Tax Issues in International Shipping", 1993 Canadian Tax Journal, Vol. 41, No. 4, p. 724.

Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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...

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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...

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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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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) award pursuant to lost overtime grievance was taxable under surrogatum principle 156

Administrative Policy

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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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...

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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...

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Words and Phrases
social assistance payment

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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Locations of other summaries Wordcount
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...

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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...

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Words and Phrases
municipality

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...

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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...

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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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Locations of other summaries Wordcount
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

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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Locations of other summaries Wordcount
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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Locations of other summaries Wordcount
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