DEC 22 1988
Specialty Rulings Directorate G. Ozols 957-2127
Subject: Social Assistance Payments
This is in reply to your memorandum of November 10, 1988 forwarding a copy of an October 25, 1988 memorandum from the Belleville District Office requesting information concerning the meaning of the words "resided with the individual" in subparagraph 110(1)(f)(iii).
We are enclosing a copy of our reply to the Belleville District Office.
We also have some comments in general on subparagraph 110(1)(f)(iii). As you are aware, the recent amendments to that subparagraph and to paragraph 56(1)(u) have not solved the problem whereby owners of facilities, who reside with the residents and operate the facility as a business, include social assistance payments they receive in respect of the residents in their business income and claim both their business expenses and the deduction under subparagraph 110(1)(f)(iii). A possible solution to this problem would be to amend subparagraph 110(1)(f)(iii) to allow the deduction only where the payment has been included in income under paragraph 56(1)(u) or as a supplement or spouse's allowance described in clause 56(1)(a)(i)(A). The reference to the latter types of payments would be necessary to ensure that such payments, which are included in income under clause 56(1)(a)(i)(A), would continue to be deductible under subparagraph 110(1)(f)(iii).
We trust the above is of assistance to you.
ORIGINAL SIGNED BY
Director General Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch