3 October 2006 Internal T.I. 2006-0208161I7 F - Projet pilote - Alternative jeunesse -- summary under Paragraph 56(1)(u)

Regarding assistance payments under the program "Alternative jeunesse" ["Youth Alternative" program] of the Ministère de l'emploi et de la solidarité sociale du Québec to young adults who voluntarily agree to an intervention plan for reintegration into the labour market, CRA stated:

The youth allowance is paid to a participant in the "Alternative jeunesse" program as a replacement for the basic employment assistance benefit. Since the latter is paid following an examination of the participant's needs, resources and income, it is clear that the youth allowance constitutes a social assistance benefit under paragraph 56(1)(u). …

[T]hey can also benefit from an offsetting deduction under paragraph 110(1)(f) so that those amounts are not taxed.

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