Items not included in income - Canada

The following items are not included in income of taxpayer for a taxation year:

Amounts declared to be exempt by legislation of the Parliament of Canada (s. 81(1)(a))

Amounts received from a mining property or for shares thereof received by a prospector, a prospector’s employer, or a financial backer, if not received under an option to purchase or during or after a campaign to sell such shares to the public (s. 81(1)(l))

Amounts received under War Savings Certificates or similar certificates issued by Newfoundland before April 1, 1949 (s. 81(1)(b))

Board and lodging of employees at special work sites (s. 5(2), s. 6(6), and s. 6(7))

Certain payments from employees’ profit sharing plans (s. 81(1)(k), s. 144)

Certain payments under Government or like annuities issued before June 25, 1940 (s. 58)

Employees at special work sites – value of board and lodging or transportation or allowance received by construction workers and certain other employees under certain conditions (s. 6(6))

German compensation payments (s. 6(17))

Halifax disaster pensions (s. 81(1)(f))

Income from the office of Governor – General of Canada (s. 81(1)(n))

Non-resident person’s income from the operation of ships or aircraft where reciprocal exemption is granted by the country of the person’s residence (s. 81(1)(c))

Patronage dividends in respect of consumer goods and services (s. 135(7))

Pension for war services (s. 81(1)(d))

Portion of benefits under a pension plan which was tax-exempt at any time (s. 57(3))

Portion of elected M.L.A.’s expense allowance (s. 81(2))

Portion of elected municipal officer’s expense allowance (s. 81(3))

Private health services plan – benefit of employer’s contributions (s. 6(1)(a))

Provincial indemnities (s. 81(1)(q))

Public officers’ expense allowances up to ½ of salary (s. 81(3)(b))

R.C.M.P. pension or compensation (s. 81(1)(i))

Refunds of registered education savings plan payments (s. 81(1)(o))

Scholarships, fellowships, and bursaries if received in connection with enrolment at a designated education institution in a program in which the student may claim the education tax credit (plus, after 2006, scholarships and bursaries that are provided to attend elementary and secondary schools) (s. 56(3))

Service pensions paid by foreign allies where reciprocal exemption exists (s. 81(1)(e))

Stock rights conferred by a corporation on all holders of its common shares (s. 15(1)(c))

Disclaimer:

This information is for educational purposes only. It does not constitute any legal advice or opinion. Please do not use any of its contents without seeking a professional advice.

References:

Canadian Master Tax Guide by CCH

Mansoor Suhail (Mani)

Accountant

BSBA – EA – ICIA – RA

Tax for Canada and U.S.A

Web: www.theaccountingandtax.com and www.taxservicesguru.com

Blog: http://taxservicesguru.blogspot.ca

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