Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
April 18, 2000
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your letter of January 27, 2000, on behalf of your constituents, concerning the requirement to include in income the amounts received from the government of British Columbia under its Child in the Home of Relative Program.
The requirement to include the particular amounts in total income is not based on a change in policy but rather on specific rules in the Income Tax Act. However, these rules also provide an offsetting deduction for these payments in calculating taxable income. Thus, while the payments included in income may affect certain tax credits that are based on income, these amounts are effectively received tax-free in calculating taxable income.
I trust my comments will assist you in responding to your constituents.
Yours sincerely,
Martin Cauchon