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Alberta Floods - CRA Confirms Disaster Assistance Payments Not Taxable 

Canadian Tax Adviser

 

July 23, 2013

 

Ruth Cummings
GTA, Enterprise Tax

 

In a recent technical interpretation, the CRA confirms that disaster assistance payments made by the Government of Alberta, a municipality, or a public authority, to individuals for personal losses or expenses (as opposed to business expenses) from the recent Alberta floods, will not be included in the recipient's income for income tax purposes. For example, payments to individuals from a government for temporary housing and meals during the disaster and compensation for the loss or damage of a personal residence do not have to be included in income.

Previously, the CRA announced that taxpayers affected by flooding in Alberta will have until August 2, 2013, to file their T2 returns. In addition, affected taxpayers could apply for relief under the Taxpayer Relief provisions to have interest and penalties waived or cancelled where they were unable to meet their filing obligation.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to July 23, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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