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I-3 - Taxation Act
Section 491
Disposition versions
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (S.C. 1918, c. 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (S.C. 1974-75-76, c. 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (R.S.C. 1970, c. R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (R.S.C. 1985, c. R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (R.S.C. 1985, c. A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (R.S.C. 1985, c. P-6), the Civilian War-related Benefits Act (R.S.C. 1985, c. C-31) or the War Veterans Allowance Act (R.S.C. 1985, c. W-3);
(e.1) an amount received or enjoyed by a taxpayer or the taxpayer’s spouse or survivor, within the meaning of subsection 1 of section 146.2 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), on account of
i. a Canadian Forces income support benefit payable under Part 2 of the Veterans Well-being Act (S.C. 2005, c. 21),
ii. pain and suffering compensation, additional pain and suffering compensation or a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of the Veterans Well-being Act,
iii. a caregiver recognition benefit payable under Part 3.1 of the Veterans Well-being Act,
iv. an amount payable under subsection 1 of section 132 of the Veterans Well-being Act,
v. a benefit provided under the Veterans Health Care Regulations (SOR/90-594),
vi. a benefit provided in respect of Rehabilitation Services and Vocational Assistance under Part 2 of the Veterans Well-being Act,
vii. a benefit provided to a member of the Canadian Forces under the Compensation and Benefit Instructions for the Canadian Forces that is
(1) a home modifications benefit,
(2) a home modifications move benefit,
(3) a vehicle modifications benefit,
(4) a home assistance benefit,
(5) an attendant care benefit,
(6) a caregiver benefit,
(7) a spousal education upgrade benefit,
(8) a funeral and burial expenses benefit, or
(9) a next of kin travel benefit, or
viii. a benefit provided by the Department of National Defence as an education expense reimbursement for ill and injured members;
(e.2) an amount received under any of sections 100 to 103 of the Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7);
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin;
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada,
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006,
(4) the Settlement Agreement entered into by Her Majesty in Right of Canada on 15 September 2021 in respect of the class action relating to long-term drinking water quality for impacted First Nations, or
(5) the Settlement Agreement entered into by His Majesty in right of Canada on 18 January 2023 in respect of the class action relating to the attendance of day scholars at residential schools, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i; or
(h) an amount received under the Memorial Grant Program for First Responders established under the authority of the Department of Public Safety and Emergency Preparedness Act (S.C. 2015, c. 10) in respect of individuals who die in the course of, or as a result of, their duties or as a result of an occupational illness or psychological impairment.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (S.C. 1918, c. 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (S.C. 1974-75-76, c. 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (R.S.C. 1970, c. R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (R.S.C. 1985, c. R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (R.S.C. 1985, c. A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (R.S.C. 1985, c. P-6), the Civilian War-related Benefits Act (R.S.C. 1985, c. C-31) or the War Veterans Allowance Act (R.S.C. 1985, c. W-3);
(e.1) an amount received on account of
i. a Canadian Forces income support benefit payable under Part 2 of the Veterans Well-being Act (S.C. 2005, c. 21),
ii. pain and suffering compensation, additional pain and suffering compensation or a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of the Veterans Well-being Act,
iii. a caregiver recognition benefit payable under Part 3.1 of the Veterans Well-being Act, or
iv. an amount payable under subsection 1 of section 132 of the Veterans Well-being Act;
(e.2) an amount received under any of sections 100 to 103 of the Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7);
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin;
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada,
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006, or
(4) the Settlement Agreement entered into by Her Majesty in Right of Canada on 15 September 2021 in respect of the class action relating to long-term drinking water quality for impacted First Nations, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i; or
(h) an amount received under the Memorial Grant Program for First Responders established under the authority of the Department of Public Safety and Emergency Preparedness Act (S.C. 2015, c. 10) in respect of individuals who die in the course of, or as a result of, their duties or as a result of an occupational illness or psychological impairment.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (S.C. 1918, c. 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (S.C. 1974-75-76, c. 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (R.S.C. 1970, c. R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (R.S.C. 1985, c. R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (R.S.C. 1985, c. A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (R.S.C. 1985, c. P-6), the Civilian War-related Benefits Act (R.S.C. 1985, c. C-31) or the War Veterans Allowance Act (R.S.C. 1985, c. W-3);
(e.1) an amount received on account of
i. a Canadian Forces income support benefit payable under Part 2 of the Veterans Well-being Act (S.C. 2005, c. 21),
ii. pain and suffering compensation, additional pain and suffering compensation or a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of the Veterans Well-being Act,
iii. a caregiver recognition benefit payable under Part 3.1 of the Veterans Well-being Act, or
iv. an amount payable under subsection 1 of section 132 of the Veterans Well-being Act;
(e.2) an amount received under any of sections 100 to 103 of the Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7);
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin;
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada, or
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i; or
(h) an amount received under the Memorial Grant Program for First Responders established under the authority of the Department of Public Safety and Emergency Preparedness Act (S.C. 2015, c. 10) in respect of individuals who die in the course of, or as a result of, their duties or as a result of an occupational illness or psychological impairment.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (S.C. 1918, c. 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (S.C. 1974-75-76, c. 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (R.S.C. 1970, c. R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (R.S.C. 1985, c. R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (R.S.C. 1985, c. A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (R.S.C. 1985, c. P-6), the Civilian War-related Benefits Act (R.S.C. 1985, c. C-31) or the War Veterans Allowance Act (R.S.C. 1985, c. W-3);
(e.1) an amount received on account of a Canadian Forces income support benefit payable under Part 2 of the Veterans Well-being Act (S.C. 2005, c. 21), on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of that Act or on account of a caregiver recognition benefit payable under Part 3.1 of that Act;
(e.2) an amount received under any of sections 100 to 103 of the Budget Implementation Act, 2016, No. 1 (S.C. 2016, c. 7);
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin; or
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada, or
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (S.C. 1918, c. 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (S.C. 1974-75-76, c. 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (R.S.C. 1970, c. R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (R.S.C. 1985, c. R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (R.S.C. 1985, c. A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (R.S.C. 1985, c. P-6), the Civilian War-related Benefits Act (R.S.C. 1985, c. C-31) or the War Veterans Allowance Act (R.S.C. 1985, c. W-3);
(e.1) an amount received on account of a Canadian Forces income support benefit payable under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act (S.C. 2005, c. 21), on account of a critical injury benefit, disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of that Act or on account of a family caregiver relief benefit payable under Part 3.1 of that Act;
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin; or
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada, or
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (Statutes of Canada, 1918, chapter 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (Statutes of Canada, 1974-75-76, chapter 88);
(d) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (Revised Statutes of Canada, 1970, chapter R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (Revised Statutes of Canada, 1985, chapter R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (Revised Statutes of Canada, 1985, chapter A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (Revised Statutes of Canada, 1985, chapter P-6), the Civilian War-related Benefits Act (Revised Statutes of Canada, 1985, chapter C-31) or the War Veterans Allowance Act (Revised Statutes of Canada, 1985, chapter W-3);
(e.1) an amount received as a Canadian Forces income support benefit payable under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act (Statutes of Canada, 2005, chapter 21) or as a disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of that Act;
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin; or
(g) an amount that, but for this paragraph, would be the income of the taxpayer for the year if
i. the taxpayer is the trust established under
(1) the 1986-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada and Her Majesty in right of each of the provinces,
(2) the Pre-1986/Post-1990 Hepatitis C Settlement Agreement entered into by Her Majesty in right of Canada, or
(3) the Indian Residential Schools Settlement Agreement entered into by Her Majesty in right of Canada on 8 May 2006, and
ii. the only amounts paid to the taxpayer before the end of the year are those provided for under the relevant agreement described in subparagraph i.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (Statutes of Canada, 1918, chapter 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (Statutes of Canada, 1974-75-76, chapter 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (Revised Statutes of Canada, 1970, chapter R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (Revised Statutes of Canada, 1985, chapter R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (Revised Statutes of Canada, 1985, chapter A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (Revised Statutes of Canada, 1985, chapter P-6), the Civilian War-related Benefits Act (Revised Statutes of Canada, 1985, chapter C-31) or the War Veterans Allowance Act (Revised Statutes of Canada, 1985, chapter W-3);
(e.1) an amount received as a Canadian Forces income support benefit payable under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act (Statutes of Canada, 2005, chapter 21) or as a disability award, death benefit, clothing allowance or detention benefit payable under Part 3 of that Act; or
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin.
491. The following shall also be excluded in computing income:
(a) a pension payment in the case of disability or death arising out of a war from a country that was an ally of Canada at that time, if that country grants the same exemption for the year to persons receiving a pension contemplated in paragraph e;
(b) a pension payment, a grant or an allowance in respect of death or injury sustained in the explosion in Halifax in 1917 and received from the Halifax Relief Commission the incorporation of which was confirmed by An Act respecting the Halifax Relief Commission (Statutes of Canada, 1918, chapter 24) or received pursuant to the Halifax Relief Commission Pension Continuation Act (Statutes of Canada, 1974-75-76, chapter 88);
(c) a pension payment or compensation received under section 5, 31 or 45 of the Royal Canadian Mounted Police Pension Continuation Act (Revised Statutes of Canada, 1970, chapter R-10) or sections 32 and 33 of the Royal Canadian Mounted Police Superannuation Act (Revised Statutes of Canada, 1985, chapter R-11), in respect of an injury, disability or death;
(d) (paragraph repealed);
(e) compensation received under the regulations made under section 9 of the Aeronautics Act (Revised Statutes of Canada, 1985, chapter A-2), an amount received under the Gallantry Awards Order made by the Government of Canada or a pension payment, an allowance or compensation that is received under the Pension Act (Revised Statutes of Canada, 1985, chapter P-6), the Civilian War-related Benefits Act (Revised Statutes of Canada, 1985, chapter C-31) or the War Veterans Allowance Act (Revised Statutes of Canada, 1985, chapter W-3); or
(f) a payment made by the Federal Republic of Germany or by a public body performing a function of government within that country as compensation to a victim of National Socialist persecution, where such payment is exempt from income tax in the country of origin.
