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.