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

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#ge;,r#d
,date3 ,june #ah1 #bjjc
,subject3 ,9come ,tax ,act--,s*ol>%ips1
  ,fell[%ips1 ,burs>ies1 ,prizes1
  ,rese>* ,grants & ,f9ancial ,assi/.e
,ref];e3 ,p>agraphs #ef7#a77n71 7o71
  7r71 7aa7 & subsec;n #ef7#c7 7al sec;n
  #fg2 subsec;ns #e7#a71 #f7#c71 #i7#a71
  #ef7#b71 #ajd7#ac71 #aje7#a7 &
  #aah.e7#a72 p>agraphs #f7#a77a71
  #ef7#a77q71 #fj7q71 #fj7v4#a71
  #aaj7#a77g7 & #aec7#a77s72 &
  subp>agraphs #ef7#a77a77;iv71
  #fj7n77;vi7 & #aae7#b77e77;ii77 (!
  ,9come ,tax ,act &! def9i;n (
  8remun],n0 "u p>agraph #ajj7#a77h71 &
  sec;ns #bjj & #ggjj (! ,9come ,tax
  ,regul,ns7

                                      #a
             ,,it-#ge;,r#d          a #a
  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e us$
prim>ily 0\r /aff1 tax speciali/s1 & o!r
9dividuals :o h an 9t]e/ 9 tax matt]s4
,= ^? r1d]s :o pref] a less te*nical
explan,n (! law1 we (f] o!r public,ns1
s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s        #b
             ,,it-#ge;,r#d          b #a
o!rwise specifi$4 ,if "! is a subsequ5t
*ange 9 t 9t]pret,n or posi;n &! *ange
is b5eficial 6taxpay]s1 x is usu,y
e6ective = future assess;ts &
reassess;ts4 ,if1 on ! o!r h&1 ! *ange
is n fav\ra# 6taxpay]s1 x w norm,y 2
e6ective =! curr5t & subsequ5t tax,n
ye>s or = transac;ns 5t]$ 96af ! date on
: ! *ange is publi%$4
  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.ccra.gc.ca_:
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,manag]1 ,te*nical ,public,ns &
    ,projects ,sec;n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on
  ,k#a;,a #j;,l#e
  
  or 0email at ! foll[+ a4ress3
  _+bulletins@ccra.gc.ca_:            #c
                 ,3t5ts             c #a
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,9clu.ns "u ,p>agraphs #ef7#a77n71 7o7
    & 7r7
    ,g5]al ,ov]view 7p>agraphs #a-e7
    ,s*ol>%ips & ,burs>ies
      7p>agraphs #f-aj7
    ,fell[%ips 7p>agraphs #aa-ac7
    ,/ud5t ,assi/ant%ips
      7p>agraphs #ad-ae7
    ,/ud5t ,loans 7p>agraph #af7
    ,prizes 7p>agraphs #ag-ai7
    ,prescrib$ ,prizes 7p>agraph #bj7
    ,rese>* ,grants 7p>agraphs #ba-bd7
    ,all[.es & ,sep>ate ,grants
      7p>agraphs #be-bf7
    ,reimburse;ts & ,a3.ta# ,adv.es
      7p>agraphs #bg-bi7
    ,rese>* ,assi/ants 7p>agraph #cj7
    ,rese>* ,exp5ses 7p>agraphs #ca-cf7
    ,f9ancial ,assi/.e
      7p>agraphs #cg-ci7              #d
             ,,it-#ge;,r#d          d #a
    ,am.ts ,rcvd ,f a ,tru/
      7p>agraph #dj7
    ,9dividuals ,f ,o!r ,c.tries ,:o
      ,2come ,resid5t ( ,canada
      7p>agraph #da7
    ,non-,resid5ts ( ,canada
      7p>agraph #db7
  ,deduc;ns "u ,subsec;n #ef7#c7
    ,s*ol>%ip1 ,fell[%ip & ,burs>y
      ,exemp;n 7p>agraph #dc7
    ,>t ,produc;n ,grant ,exemp;n
      7p>agraph #dd7
    ,value ( ,tui;n ,b5efits
      7p>agraph #de7
    ,b5efits f ,regi/]$ ,n,nal ,>ts
      ,s]vice ,organiz,ns 7p>agraph #df7
    ,9=m,n ,returns 7p>agraph #dg7
    ,)hold+ ( ,tax 7p>agraph #dh7
,explan,n ( ,*anges




                                      #e
               ,applic,n            e #a
    
  ,? bullet91 : is e6ective =! #bjjj &
subsequ5t tax,n ye>s1 replaces & c.els
,9t]pret,n ,bullet9 ,,it-#ge;,r#c1 dat$
,octob] #d1 #aiic4 ,un.s o!rwise /at$1
all /atutory ref];es "?\t ! bullet9 >e
6! ,9come ,tax ,act 7! ,act74 ,italiciz$
^ws ref] 6def9$ t]ms 9 ! ,act4
--------------------------------------#b
                ,summ>y
    
  ,? bullet9 4cusses ! tax,n (
s*ol>%ips1 fell[%ips1 burs>ies1 prizes1
rese>* grants & f9ancial assi/.e4 ,!
di6];es 2t ^! types ( receipts & b5efits
>e exam9$4 ,dep5d+ on ! nature &
circum/.es (! pay;t1 ! bullet9 expla9s
h[ ea* %d 2 tr1t$ = tax purposes1 9clud+
:at am.ts m/ 2 9clud$ 9 9come1 :at am.ts
may 2 exclud$ &! deductibil;y ( relat$
exp5ses4


                                      #f
          ,4cus.n & ,9t]pret,n       a#b
    
         ,9clu.ns "u ,p>agraphs
         #ef7#a77n71 7o7 & 7r7
    
            ,g5]al ,ov]view
            7p>agraphs #a-e7
    
#a4 ,p>agraph #ef7#a77n7 g5],y 9cludes 9
  9come all am.ts1 9 excess ( :at may 2
  ref]r$ 6z ! s*ol>%ip exemp;n 7see
  p>agraph #b71 rcvd 9 ! ye> z1 or on
  a3.t (1 a3
  --s*ol>%ip2
  --fell[%ip2
  --burs>y2 or
  --prize = a*ieve;t 9 a field ( 5d1v\r
    ord9>ily c>ri$ on 0! taxpay] 7o!r
    ?an a prescrib$ prize--see p>agraph
    #bj74
  
  ,! net am.t is 9clud$ 9 9come 9 ! ye>
  rcvd4 ,am.ts rcvd 9 ! c\rse ( busi;s
  7see p>agraph #ai71 am.ts rcvd f an
  (fice or employ;t 7see p>agraph     #g
             ,,it-#ge;,r#d           b#b
  #ah71 & pay;ts rcvd f a regi/]$ $uc,n
  sav+s plan 7: >e requir$ 6be 9clud$ 9
  9come "u p>agraph #ef7#a77q77 >e n
  9clud$ "u p>agraph #ef7#a77n74
#b4 ,= ea* tax,n ye>1 only "o s*ol>%ip
  exemp;n is availa# 6be appli$ ag/ all
  9come 9clud$ "u subp>agraph
  #ef7#a77n77;i74 ,! s*ol>%ip exemp;n is
  calculat$ "u subsec;n #ef7#c7 & is
  4cuss$ fur!r 9 p>agraphs #dc & #dd4
#c4 ,grants rcvd 9 a tax,n ye> 65a# a
  taxpay] 6c>ry on rese>* or any simil>
  "w >e 9clud$ 9 9come "u p>agraph
  #ef7#a77o74 ,h["e1 a taxpay] is only
  requir$ 69clude 9 9come t "p ( s*
  grants t exce$s ! total ( any all[a#
  exp5ses 9curr$ 0! taxpay] 9 ! ye> =!
  purpose ( c>ry+ on ! "w4 ,"! is no
  s*ol>%ip exemp;n = rese>* grants rcvd4
  ,= m 9=m,n ab :at is 3sid]$ 6be a
  rese>* grant1 see p>agraphs #ba & #bb4
  ,all[a# rese>* exp5ses >e 4cuss$ 9
  p>agraphs #ca 6#cf4
                                      #h
             ,,it-#ge;,r#d           c#b
#d4 ,p>agraph #ef7#a77r7 requires t
  c]ta9 f9ancial assi/.e rcvd 0an
  9dividual 9 ! ye> 2 a4$ 9 -put+ 9come4
  ,^! am.ts 9clude e>n+s supple;ts
  provid$ "u a project or program
  sponsor$ 0a gov]n;t1 or gov]n;t ag5cy
  9 ,canada1 65c\rage 9dividuals 6obta9
  or keep employ;t4 ,fur!r1 f9ancial
  assi/.e rcvd "? programs e/abli%$ 0!
  ,canada ,employ;t ,9sur.e ,-mis.n 7!
  ,c4,e4,i4,c47 "u ,"p ,,ii (! ,employ;t
  ,9sur.e ,act & f9ancial assi/.e rcvd
  "? c]ta9 programs simil> 6^? e/abli%$
  "u ,"p ,,ii (! ,e4,i4 ,act t >e
  subject 6an agree;t )! ,c4,e4,i4,c41
  >e al 9clud$ 9 9come "u p>agraph
  #ef7#a77r74 ,a deduc;n "u p>agraph
  #aaj7#a77g7 is availa# = tui;n assi/.e
  9clud$ 9 9come "u subp>agraph
  #ef7#a77r77;ii7 or 7;iii7 & rcvd 9
  3nec;n ) basic adult $uc,n4 ,:5 a
  taxpay] repays any am.t t _h previ\sly
  be5 9clud$ 9 9come "u p>agraph
  #ef7#a77r71 ! taxpay] may claim a   #i
             ,,it-#ge;,r#d           d#b
  deduc;n "u subp>agraph #fj7n77;vi71 6!
  ext5t (! am.ts or b5efits repd 0!
  taxpay] b only = am.ts = : a deduc;n
  has n be5 claim$ "u p>agraph
  #aaj7#a77g74 ,f9ancial assi/.e is
  4cuss$ 9 p>agraphs #cg 6#ci4
#e4 ,! circum/.es ( ea* case m/ 2 exam9$
  9 ord] 6det]m9e if ! assi/.e rcvd is
  an am.t subject 6tax z a s*ol>%ip1
  fell[%ip1 burs>y or prize z describ$ 9
  p>agraph #a1 if ! am.t is a rese>*
  grant z \tl9$ 9 p>agraph #c1 or if x
  is f9ancial assi/.e 7see p>agraph #d74
  ,factors relevant 6? det]m9,n >e
  4cuss$ "?\t ! re/ ( ? bullet94

         ,s*ol>%ips & ,burs>ies
           7p>agraphs #f-aj7
    
#f4 ,s*ol>%ips & burs>ies >e am.ts pd or
  b5efits giv5 6/ud5ts 65a# !m 6pursue
  _! $uc,n4 ,s*ol>%ips & burs>ies usu,y
  apply 6$uc,n at a po/-second>y level
  or 2y1 s* z at a univ]s;y1         #aj
             ,,it-#ge;,r#d           e#b
  college1 te*nical 9/itute or o!r
  $uc,nal 9/itu;n4 ,h["e1 "! >e
  circum/.es ": s*ol>%ips or burs>ies >e
  aw>d$ = $uc,n 2l ! po/-second>y s*ool
  level4 ,s*ol>%ips & burs>ies norm,y
  assi/ ! /ud5t 9 proce$+ t[>ds a
  degree1 diploma1 or o!r c]tificate (
  gradu,n4 ,s*ol>%ips & burs>ies may
  apply 6any field ( /udy1 9clud+ an
  academic 4cipl9e 7s* z ! >ts or
  sci;es71 a profes.nal program 7s* z
  law or m$ic9e7 or a trade or skill 7s*
  z plumb+ or c>p5try74 ,norm,y1 a /ud5t
  is n expect$ 6d specific "w =! pay] 9
  ex*ange =a s*ol>%ip or burs>y4 ,if a
  s*ol>%ip or burs>y program provides
  all[.es or reimburse;ts 6pay =
  specific $uc,nal co/s1 s* z ^? =
  lodg+1 p]sonal travel1 tools1 books or
  equip;t1 ^? am.ts >e g5],y 9clud$ "u
  subp>agraph #ef7#a77n77;i7 7see
  p>agraphs #bg 6#bi74 ,subp>agraph
  #ef7#a77n77;i7 c al apply 6! value (
                                     #aa
             ,,it-#ge;,r#d           f#b
  b5efits 9 k9d1 s* z free a3ommod,n or
  equip;t4
#g4 ,dur+ or immly af a p]iod (
  employ;t1 employees & employ]s "s"ts
  make agree;ts "u : ! employ] agrees
  6pay all or "p (! employee's $uc,n
  co/s on ! 3di;n t ! employee returns
  6"w =! employ] :5 ! $uc,n is -plet$4
  ,9 s* cases1 ! am.ts s pd >e employ;t
  9come 6! /ud5t "u subsec;n #e7#a7
--------------------------------------#c
  pursuant 6subsec;n #f7#c71 & n
  s*ol>%ip or burs>y 9come )9 ! m1n+ (
  subp>agraph #ef7#a77n77;i74
#h4 ,if an employ]-employee rel,n%ip has
  n yet be5 e/abli%$ &a /ud5t rcvs a
  s*ol>%ip or burs>y 9 return = "utak+
  65t] ! employ;t (! p]son grant+ ! aw>d
  ^u -ple;n (! /udies or tra9+1 ! pay;ts
  rcvd >e 3sid]$ 6be s*ol>%ip 9come "u
  subp>agraph #ef7#a77n77;i74
#i4 ,z a matt] ( gd employee rel,ns1 an
  employ] may pay tui;n fees =1 or give
  a grant or aw>d to1 "o or m        #ab
             ,,it-#ge;,r#d           a#c
  s*ool-age or univ]s;y-age *n (
  employees4 ,s* a pay;t is 3sid]$ 6be a
  s*ol>%ip or burs>y4 ,x is 9come (! *
  "u subp>agraph #ef7#a77n77;i7 if !
  pay;t is made z "p (a plan 6help a
  c]ta9 numb] ( *n :o >e select$ on !
  basis ( _! s*ola/ic records or o!r
  a*ieve;ts or qualities4 ,? tr1t;t is
  "picul>ly likely if ! selec;n is made
  0a bo>d or -mittee or 0p]sons n 3nect$
  )! employ]1 s* z s*oolt1*]s4 ,9 o!r
  cases1 a pay;t 6assi/ 9 ! $uc,n (
  employees' *n is norm,y 3sid]$ 6be
  employ;t 9come (! employee 7! p>5t7
  0virtue ( subsec;n #ef7#b7 & p>agraph
  #f7#a77a74
#aj4 ,tra9+ all[.es giv5 0c]ta9 grant+
  au?orities1 9clud+ prov9cial /ud5t
  assi/.e plans1 >e 3sid]$ 6be s*ol>%ips
  or burs>ies & >e 9clud$ 9 subp>agraph
  #ef7#a77n77;i74 ,c]ta9 tra9+ all[.es
  >e1 alt]natively1 taxa# 6! recipi5t "u
  p>agraph #ef7#a77r74 ,see p>agraphs
  #cg-ci = fur!r 9=m,n4              #ac
               ,fell[%ips            b#c
           7p>agraphs #aa-ac7
    
#aa4 ,fell[%ips >e simil> 6s*ol>%ips &
  burs>ies 9 t !y >e am.ts pd or b5efits
  giv5 6p]sons 65a# !m 6adv.e _! $uc,n4
  ,h["e1 ! recipi5t is g5],y a graduate
  /ud5t &! pay] is g5],y a univ]s;y1
  *>;y1 or simil> body4 ,fell[%ips >e
  g5],y aw>d$ = doctoral /udies & po/-
  doctoral "w4 ,an am.t rcvd on a3.t (a
  fell[%ip is norm,y 9clud$ z a fell[%ip
  "u subp>agraph #ef7#a77n77;i71 b x c
  "s"ts 2 9clud$ z a rese>* grant "u
  p>agraph #ef7#a77o74 ,! tr1t;t dep5ds
  ^u ! prim>y purpose = : ! fell[%ip 0
  grant$ z det]m9$ 0ref];e 6! t]ms &
  3di;ns atta*$ 6! aw>d4 ,if ! prim>y
  purpose (! aw>d is 6fur!r ! $uc,n &
  tra9+ (! recipi5t 9 8 or h] 9dividual
  capac;y1 s* z /udy+ =a doctoral
  degree1 ! aw>d is 9clud$ "u
  subp>agraph #ef7#a77n77;i71 ev5 ?\<
  rese>* is "utak5 z a m1ns 6a*ieve t
  purpose4                           #ad
             ,,it-#ge;,r#d           c#c
#ab4 ,on ! o!r h&1 if ! prim>y purpose
  (! aw>d is 6c>ry \ rese>* = xs [n sake
  7= example1 6fur!r k 9 a "picul> field
  04cov]+ new facts1 or 0re9t]pret+
  exi/+ k71 ! aw>d is 3sid]$ 6be a
  rese>* grant & is 9clud$ "u p>agraph
  #ef7#a77o74 ,": ! recipi5t's $uc,n &
  tra9+ is al fur!r$ 0s* rese>*1 s* a
  b5efit does n 9validate ! prim>y
  purpose (! grant provid$ ! b5efit cd 2
  3sid]$ 6be a second>y purpose (! grant
  or an 9evita# b 9cid5tal b5efit4 7,see
  p>agraph #bb z well z ! deci.n 9 ,!
  ,que5 v4 ,amyot1 ,7#aigf7' ,c4,t4,c4
  #ceb1 #gf ,,dtc #fbag 7,,fctd747
#ac4 ,9 "s cases an aw>d1 s* z a l1ve
  fell[%ip1 may 2 "ply =! purpose (
  rese>* & "ply =! recipi5t's $uc,n &
  tra9+4 ,if s1 x may 2come di6icult
  6det]m9e ! prim>y purpose (! aw>d4 ,9
  s* cases1 ! recipi5t may .n 9clude "p
  (! fell[%ip or o!r aw>d "u p>agraph
  #ef7#a77o7 & ano!r "p "u subp>agraph
  #ef7#a77n77;i74 ,9 ^! bord]l9e     #ae
             ,,it-#ge;,r#d           d#c
  cases1 ! "*iz,n (! am.t may 2 left 6!
  grantor 6det]m9e bas$ on ! prim>y
  purpose 6! grantor4 ,s* a det]m9,n m/
  2 r1sona# 9 ! circum/.es & %d 2 bas$
  on ! g5]al guidel9es set \ 9 p>agraphs
  #aa & #ab4

          ,/ud5t ,assi/ant%ips
           7p>agraphs #ad-ae7
    
#ad4 ,z a 3di;n ( rcvg f9ancial assi/.e1
  a /ud5t 7usu,y a graduate /ud5t or an
  upp]-ye> "ugraduate7 may agree 6d "s
  t1*+1 m>k+ ( exam9,n pap]s1 demon/r,n
  ( "w1 or rese>* z a memb] (! /aff (a
  univ]s;y4 ,if "p (! assi/.e is pd 9 !
  =m (a fell[%ip &! rema9d] z remun],n
  =! p]=m.e (! duties1 ^? two "ps >e
  tr1t$ di6]5tly = tax purposes4 ,! am.t
  rcvd z a fell[%ip is subject
  6subp>agraph #ef7#a77n77;i71 :ile !
  am.t rcvd = s]vices r5d]$ z an
  employee is 3sid]$ employ;t 9come "u
  subsec;n #e7#a74                   #af
             ,,it-#ge;,r#d           e#c
#ae4 ,if ! univ]s;y has n provid$ =
  sep>ate pay;ts (! fell[%ip & employ;t
  -pon5ts (! f9ancial assi/.e1 ! :ole
  am.t s pd 6! /ud5t wd te*nic,y 2
  employ;t 9come "u subsec;n #e7#a71
  s9ce ! t]ms (! agree;t require ! /ud5t
  6r5d] s]vice 9 return = x4 ,h["e1 if ?
  results 9 a rate ( pay t is 3sid]ably
  9 excess (! go+ rate = simil> s]vices1
  ! /ud5t is n requir$ 6tr1t ! :ole am.t
  z -p5s,n = ^! s]vices4 ,9 s* cases1 !
  /ud5t only ne$s 69clude 9 8 or h]
  9come f employ;t ! am.t t is equal
  6:at ! univ]s;y wd h pd = simil>
  s]vices r5d]$ 0a p]son n rcvg a
  fell[%ip or simil> assi/.e4 ,! rema9d]
  (! f9ancial assi/.e is reg>d$ z a
  fell[%ip & is 9clud$ "u subp>agraph
  #ef7#a77n77;i74

      ,/ud5t ,loans 7p>agraph #af7
    
#af4 ,if a /ud5t rcvs a g5u9e loan
  6assi/ 9 f9anc+ ! /ud5t's $uc,n1   #ag
             ,,it-#ge;,r#d           f#c
  ! loan is n 3sid]$ 6be an am.t rcvd z
  or on a3.t (a s*ol>%ip1 fell[%ip1 or
  burs>y = purposes ( subp>agraph
  #ef7#a77n77;i74 ,=a g5u9e loan 6exi/1
  provi.ns m/ g5],y 2 made = repay;t )9
  a r1sona# "t4 ,9 "s cases1 a =giva#
  loan may 2 9clud$ 9 9come4 ,if an am.t
  9clud$ "u subp>agraph #ef7#a77n77;i7
  or p>agraph #ef7#a77o7
--------------------------------------#d
  is lat] repd1 p>agraph #fj7q7 may all[
  ! taxpay] 6deduct ! repay;t4 ,= m
  detail$ 9=m,n1 see ! curr5t v].n (
  ,,it-#cdj1 ,s*ol>%ips1 ,fell[%ips1
  ,burs>ies & ,rese>* ,grants--,=giva#
  ,loans1 ,repaya# ,aw>ds & ,repaya#
  ,employ;t ,9come4

       ,prizes 7p>agraphs #ag-ai7
    
#ag4 ,subp>agraph #ef7#a77n77;i7 9cludes
  ! am.t (a prize = a*ieve;t 9 a field (
  5d1v\r ord9>ily c>ri$ on 0! taxpay]
  7o!r ?an a prescrib$ prize--see    #ah
             ,,it-#ge;,r#d           a#d
  p>agraph #bj74 ,a prize c 2 3sid]$ 6be
  an aw>d 6a "picul> p]son select$ f a
  gr\p ( pot5tial recipi5ts & giv5 =
  "s?+ t is a3ompli%$1 atta9$ or c>ri$ \
  su3ess;lly4 ,h["e1 ! type ( prize
  3templat$ 9 subp>agraph #ef7#a77n77;i7
  is re/rict$4 ,! crit]ia = aw>d+ !
  prize m/ 2 s* t a recipi5t is rew>d$ =
  su3ess 9 an >ea 9 : ! recipi5t
  regul>ly applies ef=t4 ,"!=e1 an am.t
  g5],y qualifies z a prize = purposes (
  subp>agraph #ef7#a77n77;i7 if x is pd
  9 recogni;n (a g5u9e a3ompli%;t 9 a
  *all5g+ >ea1 :e!r x 2 ( an academic1
  voc,nal or te*nical nature4 ,a prize t
  is n 9clud$ 9 subp>agraph
  #ef7#a77n77;i7 is 3sid]$ 6be a
  8w9dfall0 & is n requir$ 6be 9clud$ 9
  9come un.s x is al a busi;s receipt
  7see p>agraph #ai7 or 9come f employ;t
  7see p>agraph #ah74 ,! foll[+ po9ts
  9dicate h[ subp>agraph #ef7#a77n77;i7
  applies 6c]ta9 situ,ns4
                                     #ai
             ,,it-#ge;,r#d           b#d
  --,an aw>d ( damages 6an 9jur$ "py4 ,?
    is n 3sid]$ 6be a prize4
  --,lott]y w9n+s4 ,al? ? is a prize1 !
    recipi5t is n 2+ recogniz$ = an
    a3ompli%;t nor >e ! w9n+s likely
    6relate 6a field ( 5d1v\r ord9>ily
    c>ri$ on 0! recipi5t4 ,z a result1
    subp>agraph #ef7#a77n77;i7 does n
    apply4 ,see ! curr5t v].n (
    ,,it-#bac1 ,prizes f ,lott]y
    ,s*emes1 ,pool ,sy/em ,bett+ &
    ,giveaway ,3te/s4
  --,an aw>d 0a profes.nal 9/itu;n 6!
    c&idate obta9+ hi<e/ m>ks 9 exam9,ns
    set 0! 9/itu;n4 ,? is a prize
    subject 6! provi.ns ( subp>agraph
    #ef7#a77n77;i74
#ah4 ,if an employee rcvs1 f 8 or h]
  employ]1 a prize or o!r aw>d relat$
  6sales or o!r "w p]=m.e1 ! fair m>ket
  value ( s* an 9c5tive is reg>d$ z
  remun],n = s]vices4 ,acly1 ? am.t m/ 2
  9clud$ 9 9come "u subsec;n #e7#a74
  ,simil>ly1 ! fair m>ket value (    #bj
             ,,it-#ge;,r#d           c#d
  any aw>d n reg>d$ z remun],n t is rcvd
  0an employee 9 respect (1 9 ! c\rse (1
  or 0virtue (! employee's (fice or
  employ;t is al 9clud$ 9 9come f an
  (fice or employ;t "u p>agraph
  #f7#a77a74 ,= example1 am.ts rcvd f an
  employ] = exce$+ sales t>gets1 su3ess
  9 exam9,ns1 su7es;n aw>ds1 & pay;ts =
  excep;nal s]vice1 >e n eligi# =!
  s*ol>%ip exemp;n provid$ "u subsec;n
  #ef7#c74 ,= m 9=m,n1 see ! curr5t v].n
  ( ,,it-#caf1 ,aw>ds = ,employees'
  ,su7es;ns & ,9v5;ns4
#ai4 ,if "! is no employ]-employee
  rel,n%ip 2t ! pay] &! recipi5t ( an
  am.t & x c 2 e/abli%$ t ! am.t is a
  busi;s receipt1 ! am.t is 9clud$ 9
  9come "u subsec;n #i7#a74 ,h["e1 if !
  am.t rcvd is a prize = a*ieve;t 9 a
  field ( 5d1v\r ord9>ily c>ri$ on 0!
  taxpay] & x _c 2 reg>d$ z a busi;s
  receipt 7& is n a prescrib$ prize z
  4cuss$ 9 p>agraph #bj71 !n ! am.t is
  9clud$ "u subp>agraph              #ba
             ,,it-#ge;,r#d           d#d
  #ef7#a77n77;i74 ,! usual subsec;n
  #ef7#c7 exemp;n applies z 4cuss$ 9
  p>agraphs #dc & #dd4

           ,prescrib$ ,prizes
             7p>agraph #bj7
    
#bj4 ,a prize meet+ all (! crit]ia (a
  8prescrib$ prize0 is n 9clud$ 9 -put+
  ! 9come (! recipi5t1 ev5 if ! prize
  relates 6a3ompli%;ts 9 ! recipi5t's
  ord9>y field ( 5d1v\r4 ,sec;n #ggjj (!
  ,regul,ns def9es a prescrib$ prize z
  any prize t is recogniz$ 0! g5]al
  public = m]itori\s a*ieve;t 9 ! >ts1 !
  sci;es or s]vice 6! public4 ,=
  example1 a ,nobel ,prize giv5 6a
  sci5ti/ or ! ,gov]nor ,g5]al's ,lit]>y
  ,aw>d giv5 6a profes.nal writ] wd
  qualify1 z wd _m -mun;y s]vice aw>ds4
  ,s*ol>%ips & burs>ies aw>d$ 6/ud5ts wd
  n qualify4 ,fur!rmore1 any am.t t c
  r1sonably 2 reg>d$ z hav+ be5 rcvd z
                                     #bb
             ,,it-#ge;,r#d           e#d
  -p5s,n = s]vices r5d]$1 or 6be r5d]$1
  is n a prescrib$ prize4

            ,rese>* ,grants
           7p>agraphs #ba-bd7
    
#ba4 ,grants rcvd 9 a tax,n ye> 65a# a
  taxpay] 6c>ry on rese>* or any simil>
  "w >e 9clud$ "u p>agraph #ef7#a77o74
  ,h["e1 s* rese>* grants >e only 9clud$
  9 9come 6! ext5t t !y exce$ ! total (!
  all[a# exp5ses 7see p>agraphs #ca
  6#cf7 9curr$ 0! taxpay] 9 ! ye> =!
  purpose ( c>ry+ on ! "w4 ,a rese>*
  grant is g5],y a sum ( m"oy giv5 65a#
  ! recipi5t 6pay exp5ses nec 6c>ry \ a
  rese>* project4 ,! grant may al 9clude
  an ele;t ( remun],n 6! recipi5t4 ,x is
  ! nature & t]ms (! grant1 r ?an ! "n
  giv5 6x1 t det]m9e :e!r x is 9clud$ "u
  subp>agraph #ef7#a77n77;i7 or p>agraph
  #ef7#a77o74
#bb4 ,=! purposes ( p>agraph #ef7#a77o71
  8rese>*0 9volves a critical or     #bc
             ,,it-#ge;,r#d           f#d
  sci5tific 9quiry aim$ at ! 4cov]y (
  new facts1 or ! develop;t ( new
  9t]pret,ns or applic,ns4 ,x does n
  9clude rese>* c>ri$ \ =! sake (
  acquir+ ! exp]i;e or skill ( 3duct+
  rese>*1 z may 2 ! case ) rese>* c>ri$
  \ 0"ugraduate /ud5ts4 ,9 ord] =a grant
  6be 3sid]$ a rese>* grant1 ! t]ms (!
  grant m/ e/abli% t ! prim>y purpose (!
  grant is 6c>ry \ rese>* 7see ! -;ts 9
  p>agraph #ab74 ,! foll[+ factors may 2
  help;l 9 ? 3text3
--------------------------------------#e
  --,if only "o (! major purposes (!
    grant is 65a# ! recipi5t 6c>ry \ a
    rese>* project1 ? does n 9 xf
    e/abli% ! prim>y purpose4 ,! -;ts 9
    p>agraph #ac %d 2 ref]r$ 6in cases
    ": a grant has m ?an "o major
    purpose4
  --,! t]m or t]ms relat+ 6! rese>*
    require;ts =! grant m/ 2 specific4
    ,vague & g5]al ref];es1 s* z 89clud+
                                     #bd
             ,,it-#ge;,r#d           a#e
    rese>*10 d n 9 !mvs br+ ! grant )9
    p>agraph #ef7#a77o74
  --,g5],y1 aw>ds 6"ugraduates >e 9clud$
    "u subp>agraph #ef7#a77n77;i71 ev5
    ?\< "s rese>* = essays1 projects1
    etc41 is requir$ z "p (! c\rse
    require;ts4
  --,if ! t]ms (! grant d n m5;n rese>*1
    subp>agraph #ef7#a77n77;i7 applies1
    ev5 if a grt d1l ( rese>* is 9 fact
    d"o4
#bc4 ,a corpor,n or o!r 5t;y 7s* z a
  univ]s;y or college7 may decide 6give
  a grant 6a p]son \tside xs [n
  organiz,n 6d specific rese>*4 ,": ? is
  d"o1 ! grant is 3sid]$ 6be a rese>*
  grant 6! recipi5t = purposes (
  p>agraph #ef7#a77o7 :e!r ! results (!
  rese>* 2l;g 6! grantor or ! recipi5t4
  ,if ! recipi5t is an employee (!
  grantor & is reta9$ on "p sal>y :ile
  "utak+ a specific rese>* project1 ! "p
  sal>y is 9clud$ 9 ! recipi5t's 9come
  "u subsec;n #e7#a74 ,any am.t      #be
             ,,it-#ge;,r#d           b#e
  rcvd z a rese>* grant 7net ( all[a#
  exp5ses7 is 9clud$ 9 9come "u p>agraph
  #ef7#a77o74 ,9dividuals 7s* z univ]s;y
  faculty memb]s7 ^: duties ( employ;t
  9clude rese>* responsibilities >e n
  5titl$ 6tr1t a por;n ( _! regul>
  sal>ies z a rese>* grant :5 !y 5gage 9
  ! type ( rese>* "w ord9>ily expect$ (
  !m "u _! t]ms ( employ;t4
#bd4 ,a rese>* grant is n 3sid]$ 6be
  8rcvd0 at any "t =! purposes (
  p>agraph #ef7#a77o7 if all (! foll[+
  circum/.es apply3
  --funds >e made availa# 6an 9dividual
    :o holds an academic appo9t;t at a
    univ]s;y1 hospital1 or simil>
    9/itu;n1 65a# ! 9dividual 6c>ry on
    rese>* or simil> "w2
  --! funds >e pd directly 6! univ]s;y1
    hospital1 or simil> 9/itu;n2
  --! funds >e provid$ only 6pay =! co/s
    (! rese>* project2 &
  
                                     #bf
             ,,it-#ge;,r#d           c#e
  --! funds 7 n us$ 0! 9dividual & 7 n
    o!rwise availa# =! p]sonal b5efit (!
    9dividual4
  
  ,9 "s cases1 "p (! rese>* grant may 2
  pd 6a rese>*] or may o!rwise 2 made
  availa# =! rese>*]'s p]sonal b5efit1 b
  ! rema9d] (! funds meet ! crit]ia li/$
  abv4 ,if s1 only t "p (! grant actu,y
  pd to1 or o!rwise availa# =! rese>*]'s
  p]sonal b5efit1 w 2 3sid]$ 6be 8rcvd0
  0! rese>*] z a rese>* grant "u
  p>agraph #ef7#a77o74

      ,all[.es & ,sep>ate ,grants
           7p>agraphs #be-bf7
    
#be4 ,9 ? bullet91 8all[.e0 ref]s 6any
  p]iodic or o!r type ( pay;t t a /ud5t1
  rese>*] or o!r 9dividual rcvs =
  exp5ses )\t hav+ 6a3.t = xs use4 ,all
  am.ts rcvd z a s*ol>%ip1 fell[%ip1
  burs>y1 prize = a*ieve;t1 rese>* grant
  or f9ancial assi/.e m/ 2 9clud$    #bg
             ,,it-#ge;,r#d           d#e
  9 -put+ 9come4 ,^! am.ts m/ 2 9clud$
  :e!r or n !y >e rcvd z a fix$ sum1 z
  an all[.e1 or z a fix$ sum plus
  a4i;nal all[.es4 ,! -;ts 9 p>agraphs
  #aa1 #ab & #bb1 : d1l ) :e!r or n a
  grant %d 2 9clud$ "u subp>agraph
  #ef7#a77n77;i7 or p>agraph #ef7#a77o71
  al apply 6all[.es4
#bf4 ,ea* all[.e & grant %d 2 3sid]$
  sep>ately :5 det]m9+ if x is subject
  6p>agraph #ef7#a77n71 7o7 or 7r74
  ,"!=e1 x is possi# =a graduate /ud5t
  6h an aw>d t is 9clud$ "u subp>agraph
  #ef7#a77n77;i71 a subsidi>y all[.e or
  sep>ate grant 7ei f ! same1 or a
  di6]5t grantor7 : is 9clud$ "u
  p>agraph #ef7#a77o7 & 6be rcvg
  f9ancial assi/.e : is 9clud$ "u
  p>agraph #ef7#a77r74




                                     #bh
        ,reimburse;ts & ,a3.ta#      e#e
       ,adv.es 7p>agraphs #bg-bi7
    
#bg4 ,! t]ms 8reimburse;t0 & 8a3.ta#
  adv.e0 >e us$ 9 ? bullet9 )! foll[+
  m1n+s4
  --8,reimburse;t0 ref]s 6pay;ts
    6/ud5ts1 rese>*]s or o!r 9dividuals
    6repay !m = am.ts !y sp5t 9 3t9u+ _!
    $uc,n or 9 c>ry+ \ rese>* "w4
  --8,a3.ta# adv.e0 ref]s 6am.ts giv5
    6/ud5ts1 rese>*]s or o!r 9dividuals
    = exp5ses 6be 9curr$ 0!m 9 3t9u+ _!
    $uc,n or 6c>ry \ rese>* "w4 ,^!
    am.ts m/ 2 a3.t$ = 0provid+ v\*]s4
    ,any am.t n exp5d$ = xs 9t5d$
    purpose m/ 2 return$4
#bh4 ,reimburse;ts or a3.ta# adv.es
  6cov] exp5ses 9curr$ 0/ud5ts 9 fur!r+
  _! $uc,n >e subject 6subp>agraph
  #ef7#a77n77;i74 ,= example1 /ud5ts :o
  rcv s*ol>%ips 65a# !m 6att5d
  univ]sities locat$ at "s 4t.e f _!
  homes may al rcv reimburse;ts or
  a3.ta# adv.es 6cov] travell+       #bi
             ,,it-#ge;,r#d           f#e
  exp5ses 2t _! homes &! univ]s;y4 ,?
  type ( reimburse;t or a3.ta# adv.e is
  9clud$ "u subp>agraph #ef7#a77n77;i74
#bi4 ,a reimburse;t or a3.ta# adv.e 6pay
  =! r1sona# co/s (a rese>* project is
  only 9clud$ 9 -put+ 9come 6! ext5t t !
  exp5ses reimburs$ repres5t p]sonal or
  liv+ exp5ses (! recipi5t 7except
  all[a# travell+ exp5ses z \tl9$ 9
  p>agraphs #ca 6#cf74 ,exp5ses = : !
  recipi5t has rcvd a reimburse;t or
  a3.ta# adv.e & : >e n 9clud$ 9 -put+
  9come >e n deducti# z all[a# exp5ses
  "u p>agraph #ef7#a77o74
--------------------------------------#f
           ,rese>* ,assi/ants
             7p>agraph #cj7
    
#cj4 ,9 "s cases1 a rese>*] may hire "o
  or m assi/ants ^: rel,n%ip 6! rese>*]
  may 2 t (3
  --co-rese>*] 6! rese>*]2
  --employee 6an employ]2 or
  --/ud5t 6a professor4              #cj
             ,,it-#ge;,r#d           a#f
  ,if ! rel,n%ip is t ( .co-rese>*] 6!
  rese>*]1 pay;ts made \ (a rese>* grant
  6! co-rese>*] >e reg>d$ z a rese>*
  grant = purposes ( p>agraph
  #ef7#a77o74 ,if ! rel,n%ip is t (
  .employee 6an employ]1 pay;ts made 6!
  assi/ant >e reg>d$ z employ;t 9come
  taxa# "u subsec;n #e7#a74 ,9 cases ":
  ! rel,n%ip (! assi/ant 6! rese>*] is t
  ( ./ud5t 6a professor1 ! /ud5t rcvg
  pay;t = 8 or h] %>e 9 ! project may h
  "utak5 ! "w n prim>ily = f9ancial ga9
  b 2c "picip,n 9 x w assi/ ! /ud5t 9
  qualify+ =a degree or o!r s*ola/ic
  recogni;n 9 ! field 9 : ! rese>* is 2+
  c>ri$ on4 ,9 ? situ,n1 ! direc;n giv5
  0! rese>*] is usu,y (a g5]al or
  3sultative nature1 &! /ud5t-assi/ant w
  h m freedom 9 c>ry+ on 8 or h] "p (!
  project ?an an assi/ant wd "u an
  employee-employ] rel,n%ip4 ,if ? is !
  case1 pay;ts made \ (a rese>* grant 6!
  assi/ant >e reg>d$ z a rese>* grant4
  ,on ! o!r h&1 duties & tasks may   #ca
             ,,it-#ge;,r#d           b#f
  2 requir$ t d n h 6be p]=m$ 0a /ud5t
  "picipat+ 9 ! rese>* 6fur!r 8 or h] [n
  $uc,n4 ,c]ta9 types ( cl]ical or
  laboratory "w1 = example1 may require
  "s degree ( skill1 b if t "w is p]=m$
  0! /ud5t assi/ant "u ! specific
  direc;n (a rese>*] or co-rese>*] & x
  is d"o prim>ily = f9ancial ga91 an
  employee-employ] rel,n%ip is 3sid]$
  6exi/4 ,if s1 pay;ts rcvd 0! /ud5t
  assi/ant \ (! grant >e employ;t 9come
  9clud$ "u subsec;n #e7#a74

            ,rese>* ,exp5ses
           7p>agraphs #ca-cf7
    
#ca4 ,rese>* grants only ne$ 6be 9clud$
  9 9come 6! ext5t t ! grants exce$
  all[a# exp5ses 9curr$ 0! taxpay] 9 !
  ye> =! purpose ( c>ry+ on ! "w4 ,!
  rese>* exp5ses all[a# "u p>agraph
  #ef7#a77o7 may n exce$ ! total rese>*
  grants taxa# 9 ! ye> "u t p>agraph4 ,9
  o!r ^ws1 rese>* exp5ses _c 2       #cb
             ,,it-#ge;,r#d           c#f
  appli$ 6reduce o!r types ( 9come s* z
  s*ol>%ips1 employ;t 9come or busi;s
  9come4 ,0virtue ( sec;n #fg1 rese>*
  exp5ses >e al n deducti# 6! ext5t t !y
  exce$ an am.t t is r1sona# 9 !
  circum/.es4
#cb4 ,9 ? 3text1 all[a# rese>* exp5ses d
  n 9clude3
  --p]sonal & liv+ exp5ses (! taxpay]
    7o!r ?an travell+ exp5ses 9curr$ 0!
    taxpay] :ile away f home 9 ! c\rse (
    c>ry+ on ! "w1 9clud+ am.ts sp5t =
    m1ls & lodg+--see p>agraph #cc72
  --exp5ses = : ! taxpay] has be5
    reimburs$ 7except 6! ext5t t ^!
    reimburse;ts >e 9clud$ 9 9come z "p
    (a grant rcvd72 &
  --exp5ses t >e o!rwise deducti# 9
    -put+ ! taxpay]'s 9come4
#cc4 ,travell+ exp5ses 79clud+ all am.ts
  sp5t = transport,n & lodg+ :ile
  travell+7 t ! taxpay] 9curs :ile away
  f home 9 ! c\rse ( c>ry+ on ! "w >e
  all[a# rese>* exp5ses4 ,if1 :ile   #cc
             ,,it-#ge;,r#d           d#f
  5gag$ 9 ! rese>* "w1 a taxpay]
  e/abli%es a tempor>y base 9 a place
  o!r ?an 8 or h] home1 ! taxpay] may 2
  3sid]$ 6be tempor>ily resid+ 9 t place
  7soj\rn+7 r ?an travell+4 ,? is a "q (
  fact 9 ea* case t dep5ds on factors s*
  z ! type ( a3ommod,n1 ! l5g? ( /ay1 !
  exi/;e (a p]man5t home else": &! loc,n
  (! taxpay]'s family4 ,if a taxpay] is
  tempor>ily resid+ 9 a place1 am.ts pd
  = m1ls & lodg+ 9 t place >e 3sid]$ 6be
  p]sonal & liv+ exp5ses r ?an travell+
  exp5ses4 ,z s*1 !y >e n all[a# rese>*
  exp5ses4 ,a taxpay] 9 receipt (a
  rese>* grant is 5titl$ 6claim 8 or h]
  [n exp5ses =3
  --travel 2t 8 or h] home &! place ":
    he or %e tempor>ily resides :ile
    5gag$ 9 ! rese>* "w2
  --travel f "o tempor>y loc,n 6ano!r2 &
  --travel on field trips 3nect$ )! "w4

  ,! taxpay] may n claim ! travell+
  exp5ses ( 8 or h] sp\se1 -mon-     #cd
             ,,it-#ge;,r#d           e#f
  law "pn] or *n or o!r ?ird "pies 7see
  ,subb>ao v4 ,,mnr1 ,7#aihf7' #b
  ,c4,t4,c4 #bjhi1 #hf ,,dtc #aeed
  7,,tcc774
#cd4 ,p>agraph #ef7#a77o7 provides t1 9
  ord] = rese>* exp5ses 6be deducti# f !
  grant1 ! rese>* exp5ses m/ 2 9curr$ 9
  ! same ye> 9 : ! rese>* grant is rcvd4
  ,9 "s cases1 rese>* exp5ses may 2
  9curr$ 9 ! ye> immly 2f or immly af !
  ye> 9 : ! grant is rcvd4 ,:ile ^?
  exp5ses _c 2 deduct$ 9 ! ye> 9 : !y >e
  9curr$1 !y >e 3sid]$ 6be deducti# 9 !
  ye> 9 : ! grant is rcvd4 ,h["e1 = any
  exp5ses 9curr$ 9 ! ye> 2f ! grant is
  rcvd1 ^? exp5ses 9curr$ 2f ! taxpay]
  is notifi$ t ! grant w 2 pd >e n
  deducti# f t grant4 ,rese>* exp5ses
  9curr$ m ?an "o ye> 2f1 or m ?an "o
  ye> af1 ! ye> 9 : ! grant is rcvd >e n
  deducti# f t grant4
#ce4 ,! t]m 8exp5ses0 z us$ 9 p>agraph
  #ef7#a77o7 is 9t]pret$ 69clude n only
                                     #ce
             ,,it-#ge;,r#d           f#f
  curr5t exp5ses b al exp5ditures (a
  capital nature4
#cf4 ,if rese>* exp5ses >e pd 0!
  univ]s;y1 hospital or simil> 9/itu;n
  on 2half (a rese>*] 9 ! circum/.es
  \tl9$ 9 p>agraph #bd1 ^? exp5ses >e n
  reg>d$ z hav+ be5 9curr$ 0! rese>*]4
--------------------------------------#g
           ,f9ancial ,assi/.e
           7p>agraphs #cg-ci7
    
#cg4 ,p>agraph #ef7#a77r7 requires t
  c]ta9 b5efits & tra9+-relat$ am.ts
  rcvd 0an 9dividual 9 ! ye> 2 a4$ 9
  -put+ 9come4 ,^! 9clude am.ts rcvd z
  e>n+s supple;ts "u gov]n;t sponsor$
  projects or programs4 ,!y al 9clude
  f9ancial assi/.e "u programs e/abli%$
  0! ,canada ,employ;t ,9sur.e ,-mis.n
  7! ,c4,e4,i4,c47 "u ,"p ,,ii (! ,e4,i4
  ,act1 or "u simil> programs e/abli%$
  0o!r gov]n;ts or gov]n;t ag5cies 9
  ,canada1 or o!r organiz,ns1 pursuant
  6agree;ts )! ,c4,e4,i4,c4 2c (     #cf
             ,,it-#ge;,r#d           a#g
  sec;n #fc (! ,e4,i4 ,act4 ,p>agraph
  #ef7#a77r7 c apply 6tra9+ b5efit am.ts
  79clud+ all[.es7 = tui;n1 books1
  equip;t1 travel assi/.e1 lodg+ or
  dep5d5t c>e4 ,"s examples ( programs :
  >e 9clud$ "u p>agraph #ef7#a77r7 >e !
  ,human ,res\rces ,develop;t ,canada
  ,skills ,loans & ,grants ,program1 !
  ,p4,e4,i4 ,skills ,develop;t ,program
  &! ,new ,brunswick ,skills1 ,loans &
  ,grants ,program4 ,recipi5ts ( b5efits
  & am.ts 4cuss$ abv w 2 tax$ reg>d.s (
  :e!r ! b5efits or pay;ts >e provid$ 0!
  ,canadian f$]al gov]n;t1 ano!r level (
  ,canadian gov]n;t or an organiz,n "u a
  devolu;n agree;t4
#ch4 ,a deduc;n "u p>agraph #aaj7#a77g7
  is availa# = tui;n assi/.e rcvd "u
  subp>agraph #ef7#a77r77;ii7 or 7;iii7
  9 3nec;n ) basic adult $uc,n4 ,basic
  $uc,n is prim>y or second>y level
  $uc,n or o!r simil> =ms ( tra9+4
  ,g5],y1 ! deduc;n w 2 availa# 9
  respect ( tui;n assi/.e rcvd "u    #cg
             ,,it-#ge;,r#d           b#g
  a program e/abli%$ "u ! au?or;y (!
  ,de"p;t ( ,human ,res\rces ,develop;t
  ,act or a simil> prov9cial program "u
  a lab\r-m>ket agree;t4 ,"s examples (
  tra9+ programs : >e 9clud$ "u p>agraph
  #aaj7#a77g7 >e ! ,employabil;y
  ,assi/.e = ,p ) ,4abilities 9itiative
  or ! ,opportunities ,fund = ,p]sons )
  ,4abilities4 ,! deduc;n is re/rict$
  69/.es ": ! am.t (! assi/.e is 9clud$
  9 ! /ud5t's 9come1 ! /ud5t is n
  p]mitt$ 6claim a tui;n fee cr$it "u
  subsec;n #aah.e7#a7 =! tui;n fees pd
  "u ! program &! am.t is n o!rwise
  deducti# 9 -put+ ! taxpay]'s 9come =!
  ye>4 ,see ! curr5t v].n ( ,,it-#eaf1
  ,tui;n tax cr$it1 = m 9=m,n4 ,!
  deduc;n applies only 6tui;n assi/.e &
  n 6o!r types ( assi/.e a /ud5t may rcv
  9 3nec;n )! /ud5t's tra9+4
#ci4 ,6! ext5t ( any am.ts or b5efits
  repd 0! taxpay] : 7 previ\sly 9clud$ 9
  9come "u p>agraph #ef7#a77r7 &= : a
  deduc;n 0 n claim$ "u p>agraph     #ch
             ,,it-#ge;,r#d           c#g
  #aaj7#a77g71 a deduc;n "u subp>agraph
  #fj7n77;vi7 is all[$ 9 ! ye> (
  repay;t4 ,h["e1 ! subp>agraph
  #fj7n77;vi7 deduc;n does n apply
  6repay;ts ( employ;t 9sur.e b5efits "u
  ,"p ,,vii (! ,e4,i4 ,act 7i4e4 2c !
  employ;t 9sur.e claimant's 9come =!
  ye> exce$s a /at$ limit74 ,s* b5efit
  repay;ts1 : >e paya# on or 2f ,april
  #cj (! ye> foll[+ ! ye> dur+ : !
  b5efits 7 rcvd1 >e deducti# "u
  p>agraph #fj7v4#a7 9 -put+ a taxpay]'s
  9come =! tax,n ye> 6! ext5t t ! am.t 0
  n deducti# 9 -put+ ! taxpay]'s 9come =
  any prec$+ tax,n ye>4 ,p>agraph
  #fj7v4#a7 does n require t ! ;,,ei
  b5efits 2 repd 2f ! taxpay] c deduct !
  am.t (! repay;t4

        ,am.ts ,rcvd ,f a ,tru/
             7p>agraph #dj7
    
#dj4 ,:5 a tru/ 79clud+ a tru/ : is a
  regi/]$ *>;y7 pays a s*ol>%ip1     #ci
             ,,it-#ge;,r#d           d#g
  fell[%ip1 burs>y1 prize or rese>*
  grant1 t am.t m/ 2 9clud$ 9 calculat+
  ! 9come (! recipi5t "u subp>agraph
  #ef7#a77n77;i7 or p>agraph #ef7#a77o7
  r ?an z 9come f a tru/ "u subsec;n
  #ajd7#ac7 or #aje7#a74 ,! recipi5t may
  "!=e claim ! s*ol>%ip exemp;n "u
  subsec;n #ef7#c7 or ! exp5ses all[$ "u
  p>agraph #ef7#a77o71 z ! case may be4

      ,9dividuals ,f ,o!r ,c.tries
     ,:o ,2come ,resid5t ( ,canada
             7p>agraph #da7
    
#da4 ,9dividuals f o!r c.tries :o 2come
  resid5ts or deem$ resid5ts ( ,canada
  =! purposes ( _! $uc,n or tra9+ >e
  subject 6tax 9 ,canada on _! _w 9come
  f t "t4 ,? 9come wd 9clude bo?
  ,canadian & =eign s\rce aw>ds !y rcv4
  ,h["e1 aw>ds rcvd f =eign s\rces 0s*
  9dividuals resid5t 9 ,canada may 2
  exempt f 9come tax 9 ,canada 0virtue (
  an 9come tax agree;t 2t ,canada    #dj
             ,,it-#ge;,r#d           e#g
  &! c.try 9 : ! 9dividual previ\sly
  resid$4 ,= example1 ,>ticle ,,xx (!
  ,3v5;n 2t ,canada &! ,unit$ ,/ates (
  ,am]ica ,) ,respect 6,taxes on ,9come
  & on ,capital provides an exemp;n f
  tax 9 ,canada = am.ts t ,am]ican
  /ud5ts rcv f )9 ! ,unit$ ,/ates = _!
  ma9t5.e or /udies 9 ,canada4

        ,non-,resid5ts ( ,canada
             7p>agraph #db7
    
#db4 ,subsec;n #aae7#b7 provides special
  rules p]ta9+ 6c]ta9 non-resid5t
  9dividuals4 ,! ma9 categories a6ect$
  >e3
  --/ud5ts2
  --t1*]s2
  --p]sons c>ry+ on rese>*2 &
  --9dividuals :o previ\sly 7 ,canadian
    resid5ts2
  
  :o >e 9 receipt ( remun],n f an (fice
  or employ;t or ,canadian s\rce     #da
             ,,it-#ge;,r#d           f#g
  s*ol>%ips1 fell[%ips1 burs>ies1
  prizes1 & rese>* grants4 ,9 a3ord.e )
  subp>agraph #aae7#b77e77;ii71 a non-
  resid5t 9dividual subject 6! rules (
  subsec;n #aae7#b7 is taxa# on all
  am.ts rcvd f a s\rce 9 ,canada t wd 2
  requir$ 0subp>agraph #ef7#a77n77;i7 &
  p>agraph #ef7#a77o7 6be 9clud$ 9 -put+
  9come =! ye> if ! 9dividual 7 resid5t
  9 ,canada "?\t ! ye>4
--------------------------------------#h
     ,deduc;ns "u ,subsec;n #ef7#c7
    
     ,s*ol>%ip1 ,fell[%ip & ,burs>y
        ,exemp;n 7p>agraph #dc7
    
#dc4 ,! s*ol>%ip exemp;n ref]r$ 6in
  p>agraphs #a & #b exempts ! f/ 4#ejj &
  9 c]ta9 3di;ns 7": ! s*ol>%ips1
  fell[%ips & burs>ies >e rcvd 9 3nec;n
  )a taxpay]'s 5rol;t 9 a program = : he
  or %e may claim ! $uc,n tax cr$it7 up
  64#c1jjj ( am.ts t >e 9clud$ "u
  p>agraph #ef7#a77n74 ,"u           #db
             ,,it-#ge;,r#d           a#h
  subsec;n #ef7#c7 ! s*ol>%ip exemp;n
  repres5ts ! grt] (3
  --4#ejj2 or
  --4#c1jjj :5 ! am.ts 9clud$ "u
    subp>agraph #ef7#a77n77;i7 >e 9
    respect (a s*ol>%ip1 fell[%ip or
    burs>y rcvd 9 3nec;n )! taxpay]'s
    5rol;t 9 an $uc,nal program = : he
    or %e may claim an $uc,n tax cr$it
    =! ye>4 ,see ! curr5t v].n (
    ,,it-#eae1 ,$uc,n ,tax ,cr$it =
    fur!r 9=m,n4

  ,! 8s*ol>%ip1 fell[%ip & burs>y
  exemp;n0 _c exce$ ! relat$ am.t 9clud$
  "u subp>agraph #ef7#a77n77;i74

     ,>t ,produc;n ,grant ,exemp;n
             7p>agraph #dd7
    
#dd4 ,special rules apply 6:at may 2
  describ$ z 8>t produc;n grants40
  ,specific,y1 a taxpay] :o rcvs any
  am.t t is 9clud$ "u subp>agraph    #dc
             ,,it-#ge;,r#d           b#h
  #ef7#a77n77;i7 t is 6be us$ 0! taxpay]
  9 ! produc;n (a lit]>y1 dramatic1
  musical or >ti/ic "w is 5titl$ 6a
  specific 8>t produc;n grant exemp;n04
  ,9 s* cases1 :5 calculat+ ! exemp;n "u
  subsec;n #ef7#c71 ! taxpay] may deduct
  :i*"e (! foll[+ am.ts is grt]3
  7a7 4#ejj2 or
  7b7 up 64#c1jjj (! am.ts 9clud$ "u
    subp>agraph #ef7#a77n77;i7 9 respect
    (a s*ol>%ip1 fell[%ip or burs>y rcvd
    9 3nec;n )! taxpay]'s 5rol;t 9 an
    $uc,nal program = : he or %e may
    claim an $uc,n tax cr$it =! ye>2 or
  7c7 ! total am.t ( r1sona# exp5ses
    9curr$ 9 ! ye> 6fulfil ! 3di;ns (
    rcvg all >t produc;n grants1 b n
    exce$+ ! total am.t ( s* grants
    9clud$ =! ye> "u subp>agraph
    #ef7#a77n77;i74 7,z 4cuss$ 9
    p>agraph #cd 9 rel,n 6rese>*
    exp5ses1 exp5ses 9curr$ 9 ! immly
    prec$+ or ! immly foll[+ ye> may al
    qualify47                        #dd
             ,,it-#ge;,r#d           c#h
  ,! 8>t produc;n grant exemp;n0 _c
  exce$ ! relat$ am.t 9clud$ "u
  subp>agraph #ef7#a77n77;i74

  ,! am.t ( r1sona# exp5ses 9 7c7 abv _c
  9clude3
  --p]sonal & liv+ exp5ses (! taxpay]
    7o!r ?an exp5ses ( travel1 m1ls &
    lodg+ 9curr$ 9 ! c\rse ( fulfill+ !
    3di;ns (! >t produc;n grants & :ile
    abs5t f ! taxpay]'s usual place (
    resid;e =! p]iod 6: ! >t produc;n
    grants relate71
  --exp5ses = : ! taxpay] is 5titl$ 6be
    reimburs$1 &
  --exp5ses t >e o!rwise deducti# 9
    -put+ ! taxpay]'s 9come4
  
  ,! taxpay] may n claim ! travell+
  exp5ses ( 8 or h] sp\se1 -mon-law
  "pn]1 *n or o!r ?ird "pies4


                                     #de
        ,value ( ,tui;n ,b5efits     d#h
             7p>agraph #de7
    
#de4 ,a tui;n b5efit is any am.t or sav+
  t a taxpay] rcvs1 ei directly or
  9directly1 =a c\rse1 $uc,nal or
  voc,nal program4 ,g5],y1 ": a tui;n
  b5efit m/ 2 9clud$ 9 9come "u ! ,act1
  ! value wd 2 ! fair m>ket value (!
  c\rse or program z is det]m9$ 0ref];e
  6! rates t wd 2 applica# =! same
  9dividual =! same p]iod1 = 5rol;t 9 !
  id5tical c\rse or program4 ,! value (!
  tui;n b5efit is reduc$ 0any am.t pd 0!
  taxpay]4

       ,b5efits f ,regi/]$ ,n,nal
        ,>ts ,s]vice ,organiz,ns
             7p>agraph #df7
    
#df4 ,al? p>agraph #ef7#a77aa7 requires
  a taxpay] 69clude 9 9come ! value (
  b5efits = "w%ops1 sem9>s1 tra9+
  programs & simil> develop;t programs
  rcvd or 5joy$ 9 ! ye> 0virtue (!   #df
             ,,it-#ge;,r#d           e#h
  taxpay]'s memb]%ip 9 a ,regi/]$ ,n,nal
  ,>ts ,s]vice ,organiz,n
  7,r4,n4,a4,s4,o471 :5 ,r4,n4,a4,s4,o's
  pay s*ol>%ips1 fell[%ips1 burs>ies or
  prizes : relate 6! >ts -mun;y or
  sector repres5t$ 0! ,r4,n4,a4,s4,o41
  ^! >e 9clud$ "u subp>agraph
  #ef7#a77n77;i7 :5 calculat+ !
  recipi5t's 9come4

     ,9=m,n ,returns 7p>agraph #dg7
    
#dg4 ,"u subsec;n #bjj7#b7 (! ,regul,ns1
  e pay] (a rese>* grant1 s*ol>%ip1
  fell[%ip1 burs>y or prize 7o!r ?an a
  prescrib$ prize7 m/ report ! am.t on a
  ,t#d;,a ,/ate;t ( ,p5.n1 ,retire;t1
  ,annu;y & ,o!r ,9come & e pay] ( an
  am.t t is requir$ 0p>agraph #ef7#a77r7
  6be 9clud$ 9 -put+ a taxpay]'s 9come
  m/ report ! am.t on ei a ,t#d;,a or a
  ,t#d;,e ,/ate;t ( ,employ;t ,9sur.e &
  ,o!r ,b5efits4
                                     #dg
             ,)hold+ ( ,tax          f#h
             7p>agraph #dh7
    
#dh4 ,tax does n h 6be )held at s\rce f
  am.ts t >e 9clud$ 9 calculat+ !
  recipi5t's 9come "u ei ( p>agraphs
  #ef7#a77n7 or 7o74 ,h["e1 pursuant
  6p>agraph #aec7#a77s7 &! def9i;n (
  remun],n "u p>agraph #ajj7#a77h7 (!
  ,regul,ns1 tax does h 6be )held at
  s\rce 9 respect ( am.ts 9clud$ 9
  calculat+ ! recipi5t's 9come "u
  p>agraph #ef7#a77r7 o!r ?an am.ts t
  relate 6* c>e exp5ses & tui;n co/s4
--------------------------------------#i
          ,explan,n ( ,*anges
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ 9t]pret,ns
(! ,,ccra4                           #dh
                ,ov]view             a#i
    
  ,? bullet9 updates ! =m]
,,it-#ge;,r#c1 : expla9$ h[ s*ol>%ips1
fell[%ips1 burs>ies1 prizes & rese>*
grants 7 tax$1 h[ c]ta9 relat$ exp5ses 7
deduct$1 &! di6];es 2t ! types (
receipts & b5efits4 ,we revis$ ! bullet9
69corporate p>agraph #ef7#a77n7 *anges &
new subsec;n #ef7#c71 : all[s =!
s*ol>%ip exemp;n4 ,^! *anges 7 bo? 5act$
0,s4,c4 #bjja1 c4#ag4 ,we h made g5]al
revi.ns 6improve ! r1dabil;y (! bullet9
& 6reflect rec5t ,,ccra op9ions on ^!
subjects4
  ,! scope (! new bullet9 0 exp&$
69clude a 4cus.n ( f9ancial assi/.e t is
taxa# "u p>agraph #ef7#a77r7 & deduc;ns
"u p>agraphs #fj7v4#a71 #aaj7#a77g7 &
subp>agraph #fj7n77;vi74

      ,legislative & ,o!r ,*anges
    
  ,new p>agraphs #a-e provide an ov]view
& 9troduc;n 6! bullet94 ,new         #di
             ,,it-#ge;,r#d           b#i
p>agraphs #a & #b >e simil> 6! previ\s
p>agraph #a b >e exp&$ 69clude a 4cus.n
( new subsec;n #ef7#c71 : 0 a4$ 9 ,s4,c4
#bjja1 c4#ag4
  ,new p>agraph #d cov]s f9ancial
assi/.e "u p>agraph #ef7#a77r7 &
3sequ5tial *anges 7 made 9 o!r p>agraphs
(! bullet94
  ,new p>agraph #aj 7=m]ly p>agraph #i7
is *ang$ 6remove ! ref];e 6subp>agraph
#ef7#a77a77;iv7 & replace x )a ref];e
6f9ancial assi/.e t is taxa# "u p>agraph
#ef7#a77r74 ,am.ts : >e n taxa# "u
subp>agraph #ef7#a77a77;iv7 >e taxa# "u
p>agraph #ef7#a77r74 ,! p>agraph 0 al
3tract$ 6delete ! ref];e 6p>agraph
#ef7#a77m71 : tax$ tra9+ all[.es pd "u !
,n,nal ,tra9+ ,act4 ,p>agraph #ef7#a77m7
0 rep1l$ e6ective ,janu>y #a1 #aiih
0,s4,c4 #aiif1 c4#bc4
  ,new p>agraphs #cg-ci cov] f9ancial
assi/.e t is taxa# "u p>agraph
#ef7#a77r7 &! p>agraph #fj7v4#a71
#aaj7#a77g7 & subp>agraph            #ej
             ,,it-#ge;,r#d           c#i
#fj7n77;vi7 deduc;ns4 ,^! 7 n d1lt ) 9 !
previ\s v].n ( ? bullet94
  ,new p>agraphs #dc & #dd cov] new
subsec;n #ef7#c74
  ,new p>agraph #de 4cusses ! value (
tui;n b5efits 6be 9clud$ 9 calculat+
9come "u ! ,act4
  ,new p>agraph #df1 3c]n+ regi/]$ n,nal
>ts s]vice organiz,ns1 4cusses !
taxabil;y ( am.ts "u p>agraph
#ef7#a77aa74
  ,"?\t ! bullet91 we h made o!r *anges
= cl>ific,n or r1dabil;y purposes4










                                     #ea