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Meaning of “Income”

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Posts tagged "Meaning of “Income”"
  • Kenny v. R. – TCC:  Irish resident not entitled to Canadian tax credits
    Feb 27, 2018 By Bill Innes

    Précis: Mr. Kenny was a resident and national of Ireland. In 2014 he worked in Canada for a few weeks and earned roughly $33,000. In computing his Canadian tax payable he claimed $28,717.00 in tax credits. He did not however report Irish Social Assistance payments of $23,002.37. CRA limited Mr. Kenny’s tax credits to $2,559 on the basis of section 118.94 of the Income Tax Act (the “Act”). The rationale for this was that he did not meet the provision’s test that “substantially all the individual’s income for the year [was] included in computing the individual’s taxable income earned in Canada for the year” since he had not included (nor was he required to include) the Irish Social Assistance payments which, although not taxable in Canada, nevertheless formed part of his “income” for Canadian purposes. The Tax Court found that the Irish Social Assistance payments were part of his income for Canadian purposes (although not subject to tax in his hands as a non-resident) and therefore section 118.94 denied him the additional Canadian tax credits he had claimed. The Court also found that there was no relief available to Mr. Kenny under the Canada-Ireland Tax Treaty (the “Treaty”).
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