Regulation 233

Subsection 233(2)

Administrative Policy

29 July 2015 External T.I. 2015-0575631E5 - social assistance

potential exclusion of payments in kind

A social assistance organization may purchase items such as cookware, cutlery, furniture and food cards to assist its clients. Funds may also be provided sporadically during the year to assist in paying rent, to purchase clothes for a job interview and for other needs. Must the value of the non-monetary items be reported on a T5007 and what is meant by a "series of payments" for reporting purposes? CRA responded:

A non-monetary item provided to an individual could be a social assistance payment if a payment was made to obtain the item for the benefit of the individual. However, if no payment was made to obtain a non-monetary item given to an individual (for example, donated household goods or furniture), the value of the non-monetary item would likely not be considered a social assistance payment for the purpose of paragraph 56(1)(u)… .

After discussion the means test, and quoting Reg. 233(2) including the reference to ""series of payments," CRA stated:

[A] series of payments…is a number of similar payments made in a particular year to an individual under the same program of a government or other organization.

…[I]f an amount is considered social assistance…but a financial "means, needs or income" test is not used to determine eligibility when assisting a client, or the amount is excluded from the reporting requirements by subsection 233(2)…, the amount does not have to be reported on a T5007 and is not included in the recipient's income under paragraph 56(1)(u)… .

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 3 payments in kind by social assistance organization 81
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) potential exclusion of payments in kind 276

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