11 March 2024 External T.I. 2022-0939331E5 - Workers’ Compensation Settlement -- summary under Paragraph 56(1)(v)

CRA noted that since s. 56(1)(v) required an income inclusion for "compensation received under an employees’ or workers’ compensation law … of a province in respect of an injury,” compensation received by the estate of an injured (and then deceased) worker pursuant to the Ontario Workplace Safety and Insurance Act was includible in its income (although there was a deduction in computing taxable income pursuant to s. 110(1)(f)(ii).) CRA stated:

Once a particular payment is determined to be compensation received under an employees’ or workers’ compensation law of Canada, the fact that the taxpayer receiving the payment is employed, no longer employed, or deceased, is not a relevant factor … .

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