Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Interest on workers compensation payment.
Position: Exempt from income
Reasons: Consistent with previous position on similar issue.
XXXXXXXXXX 1999-001393
J. E. Grisé
March 3, 2000
Dear XXXXXXXXXX:
Re: Interest on Reinstatement of Widows' Benefits
This is in reply to your letter of December 1, 1999, requesting our opinion as to whether income tax is payable on the interest portion of retroactive payments made to a widow who has remarried and is now entitled to retroactive benefits pursuant to section 109 of the Workplace Safety and Insurance Act, 1997 (Ontario).
Your client received an information slip for the benefits portion of her retroactive payment but not for the interest on the retroactive benefits. You have referred to our Agency's position not to treat as taxable the interest portion of a retroactive payment to all widows who remarried on or before April 17, 1985, nor to widows who remarried after April 17, 1985, pursuant to British Columbia workers' compensation legislation.
In our view, the interest portion of the retroactive payments received pursuant to section 109 of the Workplace Safety and Insurance Act, 1997 (Ontario) will not have to be included in calculating the recipient's income.
We hope our comment is helpful.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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