January 27, 1992
| Source Deductions Division | Business and General |
| A. Bissonette | Division |
| Director | R.B. Day |
| (613) 957-2136 | |
| 913310 |
Subject: Respite Caregivers of the Province of Manitoba
We are writing in reply to your memorandum of November 28, 1991, wherein you requested our comments regarding the income tax status of "Respite Caregivers" in the circumstances described in the referral from the Winnipeg District Office.
24(1)
Respite care services may be provided, in the home of the recipient, in the home of the provider, at a camp or through a recreation/leisure program or such other location that is appropriate to the needs and wishes of the mentally handicapped persons.
The D.O. is of the view that 19(1) (and other Respite Caregivers) are employees of family services and that their remuneration is not exempt from income tax.
Our Comments
In situations where a taxpayer receives social assistance payments as described in paragraph 56(1)(u), a corresponding deduction in computing taxable income is permitted under subparagraph 110(1)(f)(iii). This is the situation that the Minister of Finance was describing in his letter, and the situation that 19(1) believes applies to her.
From our review of the information submitted, it is our opinion that the description of the relationship between 19(1) and family services appears to evidence an employer/employee relationship and any remuneration received from family services would be included in 19(1) income under subsection 5(1). No amounts would be deductible in computing this income except as provided by section 8.
If, on the other hand, family services were to acknowledge that 19(1) was an independent contractor and not an employee, the amounts received by her would be included in income under subsection 9(1) and reasonable expenses would be allowable as a deduction in computing that income.
Since 19(1) does not appear to be in receipt of social assistance payments nor does she appear to be an independent contractor, we are in agreement with the position taken by the District Office in this regard.
B.W. DathDirectorBusiness and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch