Subsection 233(2)
Administrative Policy
29 July 2015 External T.I. 2015-0575631E5 - social assistance
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)… .
Paragraph 233(2)(g)
Administrative Policy
2 February 2010 Internal T.I. 2009-0345741I7 F - Programme d'aide financière d'urgence ("PAFU")
After concluding that lump sum assistance for emergency needs that was paid under the current Quebec PAFU [Emergency Financial Assistance Program] program without an income test being performed was described in s. 56(1)(u), the Directorate stated:
As the financial assistance is paid as a lump sum that is not part of a series of payments, a T5007 is not required to be filed in respect of the payment. It is the CRA's policy that amounts so excluded from the T5007 are not required to be included in income under paragraph 56(1)(u) of the Act.
After further referencing the possibility that the lump sum payment of PAFU financial assistance could be made without a means, needs, or income test, the Directorate stated:
In the absence of a means, needs or income test, an amount paid under the PAFU would not satisfy the conditions of paragraph 56(1)(u) and would not have to be included in income. Consequently, the person paying the amount would not have to make source deductions or issue information slips.