Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: An individual is a bear hunting guide each spring. However, in March of 1999, the client received $1,000 from the Province of Ontario which represented compensation for income he or she lost when the bear hunt was cancelled in the spring of 1999. Is the $1,000 taxable as business income?
Position: Yes
Reasons: As the amount covers an income deficiency, the amount would be taxable as business income.
XXXXXXXXXX 2000-003136
M. Eisner
July 24, 2000
Dear XXXXXXXXXX:
Re: Compensation - Cancellation of Bear Hunt
This is in reply to your letter of June 6, 2000 concerning the above-noted subject.
You have indicated that one of your clients was a guide with respect to a bear hunt held each spring. In March of 1999, the client received $1,000 from the Province of Ontario (the "Province") which represented compensation for income he lost when the bear hunt was cancelled in the spring of 1999. The amount was based on the number of hunters for whom he or she acted as their guide in 1998 (4 x $250).
You have asked us whether the amount of $1,000 is in the nature of income that your client is required to report.
As the compensation received is for loss of business profits, it is our view that the amount of $1,000 would be taxable as business income.
We trust that our comments are of assistance to you.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings
Policy and Legislation Branch
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