8 July 2013 Internal T.I. 2012-0472651I7 F - Crédit pour l'embauche par les petites entreprises -- summary under Paragraph 118.2(3)(b)

A taxpayer who does not carry on a business and who hires and remunerates employees including a home care worker, and deducts source deductions and files T4 slips as required thereby generates the small business job credit ("SBJC"). The Directorate stated:

[P]aragraph 118.2(3)(b) generally provides that an individual must not treat as eligible medical expenses the expenses for which the individual is entitled to be reimbursed. An exception to this rule is where the amount of the reimbursement is required to be included in computing income and is not deductible in computing taxable income. Considering that the Act does not define the term "reimbursement", we are of the view that the SBJC amount could be considered a reimbursement for the purposes of paragraph 118.2(3)(b).

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