,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act--,s*ol>%ips1
  ,fell[%ips1 ,burs>ies1 & ,rese>*
  ,grants--,=giva# ,loans1 ,repaya#
  ,aw>ds & ,repaya# ,employ;t ,9come
,numb]3 ,,it-#cdj;,r
,date3 ,septemb] #bf1 #aihd
,ref];e3 ,p>agraph #fj7g7 al p>agraphs
  #h7#a77n71 #ef7#a77n71 #ef7#a77o7 &
  #ef7#a77p7

  ,? bullet9 replaces & c.els ,,it-#cdj
dat$ ,augu/ #bc1 #aigf4 ,curr5t revi.ns
>e 9dicat$ 0v]tical l9es4

#a4 ,p>agraph #ef7#a77n7 br+s 969come =a
  tax,n ye> am.ts 7o!r ?an am.ts rcvd \
  (a regi/]$ $uc,n sav+s plan7 rcvd z
  s*ol>%ips1 fell[%ips1 burs>ies1 & "s
  prizes1 6! ext5t t ! total am.t ( ^!
  aw>ds rcvd 9 ! ye> exce$s 4#ejj4    #a
              ,,it-#cdj;,r           a#a
  ,rese>* grants >e 9clud$ 9 -put+ 9come
  virtue ( p>agraph #ef7#a77o7 6! ext5t
  t !y exce$ ! a7regate ( all[a# exp5ses
  9curr$ 9 ! ye>4 ,,it-#ge;,r#b1
  8,s*ol>%ip1 ,fell[%ips1 ,burs>ies1
  ,prizes & ,rese>* ,grants01 3ta9s
  g5]al -;ts on ! pay;ts 9clud$ 9 9come
  "u ^! two p>agraphs (! ,act4 ,?
  bullet9 d1ls specific,y ) s* aw>ds &
  grants ": !y >e 9 ! =m ( =giva# loans
  or repaya# am.ts4
#b4 ,9 ? bullet91
  7a7 a 8=giva# loan0 is a loan : is
    made 65a# ! borr[] 6pursue an $uc,n
    or 6c>ry \ a rese>* project & : !
    l5d] is -mitt$ 6=give if c]ta9
    3di;ns >e met 0! borr[]1 &
  7b7 a 8repaya# aw>d0 is a s*ol>%ip1
    fell[%ip1 burs>y or rese>* grant : !
    recipi5t is -mitt$ 6return if c]ta9
    3di;ns >e n met4
#c4 ,9 ord] 6det]m9e :e!r an am.t is a
  =giva# loan or a repaya# aw>d1 ! "rs &
  oblig,ns fl[+ f ! agree;t 2t !      #b
              ,,it-#cdj;,r           b#a
  grantor &! recipi5t m/ 2 exam9$4 ,if !
  agree;t "u : an am.t is pd gives rise
  at ! "t ( pay;t 6an 5=cea# debt1 x is
  ! ,de"p;t's view t ! am.t is a loan4
  ,if ! agree;t specifies t ! am.t pd
  does n 2come a debt (! recipi5t un.s !
  recipi5t fails 6fulfil c]ta9 3di;ns1 !
  am.t is g5],y 3sid]$ 6be a repaya#
  aw>d4
--------------------------------------#b
             ,=giva# ,loans
            7p>agraphs #d-g7
    
#d4 ,x is 3sid]$ t a bona fide loan1
  :e!r =giva# or n1 does n -e )9 ! t]ms
  8s*ol>%ip01 8fell[%ip01 8burs>y0 or
  8rese>* grant0 z us$ 9 p>agraph
  #ef7#a77n7 or 7o7 (! ,act4
#e4 ,": an employee rcvs a =giva# loan f
  an employ] on 3di;n t ! employee
  return 6employ;t )! employ] ^u -ple;n
  (! p]iod ( $uc,n 7or ! rese>* project7
  = : ! loan 0 giv51 ! am.t rcvd z a
  loan g5],y is n 9come :5 rcvd4      #c
              ,,it-#cdj;,r           a#b
  ,if ! loan 7or "p (! loan7 is
  subsequ5tly =giv5 =! r1son t !
  employ;t 3di;ns >e met1 ! am.t =giv5
  3/itutes employ;t 9come (! employee 9
  ! ye> ( =give;s "u p>agraph #f7#a77a7
  (! ,act4
#f4 ,simil>ly1 ": a taxpay] rcvs a
  =giva# loan f a p]son :o is n !
  taxpay]'s employ] :5 ! loan is made b
  :o is n ! taxpay]'s employ] :5 ! loan
  is made b :o is ! employ] at ! "t (
  =give;s1 any am.t =giv5 2c ! employ;t
  3di;ns >e met is employ;t 9come (!
  taxpay] 9 ! ye> ( =give;s "u p>agraph
  #f7#a77a74
#g4 ,": a =giva# loan has be5 tax$ "u
  subsec;n #ae7#b7 9 ! h&s (a %>ehold]1
  a subsequ5t =give;s is n 3sid]$ 6be
  employ;t 9come ev5 ?\< ! %>ehold] is
  al an employee at ! "t ( =give;s4



                                      #d
            ,repaya# ,aw>ds          b#b
           7p>agraphs #h-ac7
    
#h4 ,repaya# aw>ds >e 9clud$ 9 -put+ !
  recipi5t's 9come 9 ! ye> rcvd "u
  p>agraph #ef7#a77n7 or 7o74
#i4 ,": a taxpay]1 dur+ or immly af
  employ;t 0an employ]1 makes an agree;t
  0: ! employ] w pay =! taxpay]'s $uc,n
  on 3di;n t ! taxpay] return 6employ;t
  )! employ] af ! c\rse1 ! am.ts s pd >e
  employ;t 9come 6! taxpay] "u subsec;n
  #e7#a7 pursuant 6subsec;n #f7#c71 :e!r
  or n ! taxpay] is -mitt$ 6repay !
  employ] if ! employ;t 3di;ns >e n met4
  ,s* am.ts >e n aw>ds )9 ! m1n+ ( ?
  bullet91 & ?us >e n subject 6! rules 9
  p>agraphs #ef7#a77n7 or 7o74
  ,3sequ5tly1 ! 4#ejj exemp;n 9 p>agraph
  #ef7l77n7 is n applica# 6s* am.ts & no
  rese>* exp5ses >e deducti# f s* am.ts4
#aj4 ,": a taxpay] repays "p or all ( an
  am.t (a repaya# aw>d1 ! am.t repd is
  deducti# 9 -put+ ! taxpay]'s 9come (!
  ye> ( repay;t1 0virtue ( p>agraph   #e
              ,,it-#cdj;,r           c#b
  #fj7q71 provid$ t all (! foll[+ 3di;ns
  >e met3
--------------------------------------#c
  7a7 ! taxpay] is an 9dividual d1l+ at
    >m's l5g? )! p]son 6:om ! am.t 0
    repd 7s* p]son is ref]r$ 6z ! 8pay]0
    9 p>agraph #fj7q72
  7b7 ! am.t repd 0 9clud$ 9 -put+ !
    taxpay]'s 9come 9 a previ\s ye> z
    7;i7 an am.t describ$ 9 p>agraph
      #ef7#a77n7 7i4e41 ! net am.t (!
      aw>d af ! deduc;n (! 4#ejj--see #a
      abv71 or
    7;ii7 an am.t describ$ 9 p>agraph
      #ef7#a77o7 7i4e4 ! am.t 0: !
      rese>* grant rcvd exce$s !
      relevant exp5ses72
  7c7 ! taxpay] is requir$ 6repay ! am.t
    6! pay] z a result (! taxpay]'s
    failure 6fulfil a 3di;n /ipulat$ at
    ! "t ! aw>d 0 rcvd2
  7d7 dur+ ! p]iod = : an am.t 9 7b77;i7
    or 7;ii7 abv 0 pd1 ! taxpay] did n
    provide s]vices1 o!r ?an          #f
              ,,it-#cdj;,r           a#c
    o3a.nal s]vices1 6! pay] z an (fic]
    or "u a 3tract ( employ;t2 &
  7e7 ! am.t 0 pd 6! taxpay] 6assi/ 9
    fur!r+ ! taxpay]'s $uc,n4
#aa4 ,z not$ 9 #aj7b7 abv1 ! deduc;n "u
  p>agraph #fj7q7 (! ,act is all[$ only
  if ! am.t repd 0 9clud$ 9 -put+ !
  taxpay]'s 9come 9 a previ\s ye>4 ,if
  an am.t is rcvd & repd 9 ! same ye>1 x
  is ! ,de"p;t's view t ! am.t (! aw>d
  %d 2 exclud$ f 9come 6! ext5t t x 0
  repd 9 ! ye>4
#ab4 ,prior 6#aiha1 ": an am.t pd 6a
  taxpay] 9 circum/.es describ$ 9 #i abv
  0 9clud$ 9 ! taxpay]'s 9come f
  employ;t "u subsec;n #e7#a71 any
  subsequ5t repay;t 7prior 6#aiha7 ( all
  or "p (! am.t 0 deducti# "u p>agraph
  #fj7q7 provid$ t all (! 3di;ns
  describ$ 9 #aj7a7 & #aj7c7 to 7e7 abv
  7 met4 ,": am.ts rcvd 0a taxpay] z
  describ$ 9 #i abv h be5 repd af #aihj1
  0or on 2half (! taxpay]1 ! repay;t is
                                      #g
              ,,it-#cdj;,r           b#c
  deducti# "u p>agraph #h7#a77n7 if !
  foll[+ 3di;ns >e met3
  7a7 ! repay;t is pursuant 6an >range;t
    requir+ reimburse;t ( any am.ts rcvd
    =a p]iod "?\t : ! taxpay] did n p]=m
    duties (! (fice or employ;t2
  7b7 ! am.ts rcvd 7 9clud$ 9 -put+ !
    taxpay]'s employ;t 9come2 &
  7c7 ! total ( reimburse;ts did n exce$
    ! total (! am.ts rcvd =! p]iod
    ref]r$ 6in 7a7 abv4
#ac4 ,a repay;t (a repaya# aw>d z
  expla9$ 9 #aj abv : is deducti# 0!
  taxpay] "u p>agraph #fj7q7 or a
  repay;t ( employ;t 9come z expla9$ 9
  #ab abv : is deducti# 0! taxpay] "u
  p>agraph #h7#a77n7 is 6be br"\ 96!
  9come (! recipi5t4





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