• Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/29/2013

Canada - Alberta flood relief payments not taxable individual income 

July 29:  The Canada Revenue Agency (CRA) issued a recent technical interpretation, confirming that disaster assistance payments—whether 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 had announced that taxpayers affected by flooding in Alberta have until
2 August 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 when they were unable to meet their filing obligation.

Read a July 2013 report prepared by the KPMG member firm in Canada: Alberta Floods - CRA Confirms Disaster Assistance Payments Not Taxable

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