Principal Issues: Whether the proposed payments from the Government of British Columbia MCFD to former foster care providers in the province would meet the income exclusion requirements of paragraph 81(1)(h).
Position: Question of fact. The proposed payments will not constitute income from a source, and therefore, will not be taxable under the Act. Furthermore, the proposed payments for specified adults, without a developmental disability, would not meet the income exclusion requirements of paragraph 81(1)(h).
Reasons: The proposed payments are not income from a source since it is likely that the activity of providing care to the specified adults has a personal element, and is not being carried on in a sufficiently commercial manner to constitute a source of income from a business. Furthermore, the proposed payments for specified adults without a disability are not based on a means, needs, or income test, and would not fall under paragraph 56(1)(u).