| 922362 | |
| 19(1) | A. Payette |
| (613) 957-8953 |
November 13, 1992
Dear 19(1)
Re: Child Benefit Portion of CPP Long Term Disability Payments
This is in reply to your letter of August 2, 1992 wherein you requested our interpretation regarding the taxability of the child benefit portion of CPP Long term Disability Payments (the "child's portion"). We apologize for the delay in our response.
Our opinion
Pursuant to the Canada Pension Plan, a disabled contributor's child's benefit is paid to each child of a disabled contributor who meets certain conditions. Furthermore, the Income Tax Act requires that any amount received by a taxpayer in the year as a benefit under the Canada Pension Plan shall be included in computing the income of the taxpayer for a taxation year in which the payments are received.
Consequently, we are of the opinion that the payments made to your three children and relating to the child benefit portion of CPP Long Term Disability payments, should be included in your children's income in the year in which the payments are made.
Concerning the reporting requirements and the filing of an information return, we have forwarded your request to our Source Deductions Division for their consideration.
We trust the foregoing is of assistance.
Yours truly,
P.D. Fuocofor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Vancouver District Officec.c. Source Deduction Division