After noting that payments made by Ministère de l'Emploi et de la Solidarité sociale (the "MESS") to individuals, who were homeless and receiving financial assistance of last-resort represented social assistance payments described in s. 56(1)(u), CRA stated:
ITR subsection 233(2) provides that a T5007 return does not have to be filed in certain circumstances, including where: the payment is paid as a part of a series of payments, the total of which in the particular year does not exceed $500 … .
Where a social assistance payment is not required to be reported in a T5007 return by reason of ITR subsection 233(2), the Canada Revenue Agency is of the view that the benefit does not have to be included in computing the recipient’s net income under paragraph 56(1)(u). In this case, it appears that ITR subsection 233(2) applies to amounts paid under the Program. In such a case, no source deduction would be necessary.