Scholarships not always taxable benefits

Tax court decides award was scholarship income to worker’s son
By Sarah Dobson
||Last Updated: 09/16/2008

Taxable benefits were once again under scrutiny in the Tax Court of Canada (TCC). A recent appeal concerned a Dow Chemical senior tax specialist whose son, a university student, received a company award of $3,000 in 2004 as partial reimbursement of tuition fees.

The Canada Revenue Agency (CRA) included the payment in his father’s income, saying it was a taxable benefit, but the employee appealed, saying it was scholarship income to his son — and the court agreed.