Principal Issues: [TaxInterpretations translation]
Is the multiple birth subsidy paid by the Ministère de la Santé et des Services sociaux (MSSS) pursuant to circular 2002-019 to be included in the calculation of the recipient's federal income?
Position:
Non-taxable.
Reasons:
This subsidy is not income from a source that is required to be included in computing income under paragraph 3(a) and is not required to be included in computing the recipient's income under any other provisions of the Act.
XXXXXXXXXX 2009-034287 I. Landry, M. Fisc. April 12, 2010
Dear XXXXXXXXXX,
Subject: Multiple Birth Subsidy
This is in response to your email of September 17, 2009, in which you asked us whether the multiple birth subsidy paid by the Ministère de la Santé et des Services sociaux (MSSS) pursuant to Circular Number 2002-019 must be included in the federal income calculation of its recipient.
Essentially, this subsidy paid by the MSSS is a lump sum of $6,000 for the birth of triplets, $8,000 for the birth of quadruplets and a supplement of $2,000 for each additional child born of the same pregnancy.
In the case of a multiple birth in a hospital facility, the lump sum is paid to the mother who is a resident of the province of Quebec without her having to apply for it. In fact, it is the hospital facility where the multiple birth took place that, after obtaining the mother's authorization, transmits all the necessary information to the MSSS in the days following the multiple birth.
This subsidy is intended to compensate parents for the sudden and significant increase in financial burdens resulting from such a birth.
Unless otherwise indicated, all legislative references herein are to the provisions of the Income Tax Act (the "Act").
We are of the view that the multiple birth subsidy as described herein is not taxable for the purposes of the Act. We are of the view that this subsidy is not income from a source to be included in computing income under paragraph 3(a) and is not required to be included in computing the income of the recipient under any other provisions of the Act.
Best regards,
Louise J. Roy, CGA
Manager
for the Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch.