|
Released: 11 March, 1999
Federal Tax Relief For 1998 Ice Storm Victims
Ottawa, March 11, 1999...The
Honourable Herb Dhaliwal, Minister of National Revenue and M.P.
(Vancouver South-Burnaby), today advised residents of eastern Ontario, Quebec,
New Brunswick, and Nova Scotia who were affected by the January 1998 ice storm
to keep in mind the government's tax relief measures when filing their 1998
income tax returns.
"Revenue Canada is
sensitive to the losses that ice storm victims have experienced," said
Minister Dhaliwal. "In an effort to assist Canadians in areas affected by
the ice storm, and in the interest of fairness and flexibility, Revenue Canada
is offering relief to those taxpayers who received financial assistance to help
them through their period of hardship."
During the crisis following
the ice storm, the Department applied fairness provisions in extending the
registered retirement savings plan contribution deadline, and in negotiating
flexible payment schedules with affected clients for amounts owing.
In addition, the Minister
today pointed to the remission order that was granted to eliminate any tax
consequences for reasonable financial assistance employers gave their employees
to help them recover from the disaster. The order covers areas affected by the
ice storm in eastern Ontario and parts of Quebec, New Brunswick, and Nova
Scotia. Ordinarily, financial assistance or payments to employees by employers
are considered to be employee benefits and are subject to taxation.
Ice storm victims will not
have to include the amount of such assistance in their income when they file
their 1998 income tax returns. Employers who gave financial assistance to their
employees will be able to deduct those payments as business expenses.
The Minister also confirmed
that financial assistance payments from the federal or provincial government to
ice storm victims will not result in additional tax payable.
"We are making every
effort to be fair to storm victims and to give them all the tax-filing
assistance they need. Revenue Canada tax services offices can provide any
necessary information concerning tax benefits or obligations related to the ice
storm," added Minister Dhaliwal.
The attached fact sheet
provides detailed information on the taxation of financial assistance to ice
storm victims.
- 30 -
"
19T/99
|
