Medical residents are paid by the health care facility where they do their residency. They have dual status as trainees and employees in the health care institutions, and in addition to providing care services, they carry out research and teaching. Are the scholarships or fellowships paid to them included under s. 56(3)? In responding affirmatively, CRA stated:
To determine whether the amount received by medical residents represents an amount from employment, it is necessary to determine whether there is a relationship of subordination between the employer and the medical resident. … [I]t is necessary to look for the presence of a certain number of supervisory indicators … including … mandatory presence at a workplace, more or less regular work assignment, imposition of rules of conduct or behaviour, requirement for progress reports and control of the quantity or quality of work performed. …
[I]t would appear that the relationship between the medical residents and the health care facility is one of employer-employee. If this were the case, we are of the view that amounts received by residents should be included in computing the income of residents as income from an office or employment under section 5.