Damages given to a Canadian in UK taxed on return to Canada

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DavACC
Posts: 1
Joined: Fri Jan 20, 2012 6:44 am

Damages given to a Canadian in UK taxed on return to Canada

Post by DavACC »

A canadian has been awarded loss of earnings compensation for a road traffic accident which occured in the UK.

Will they be taxed on this sum of money on their return to Canada?

If so, is this the same for all types of damages? pain and suffering, travel, medical treatment etc?
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JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

So you are still a CND resident at time of award normally it is not included in Taxable income but is included in total income and could vary by province too (ie QC has different but simillar rules on total vs taxable income)

Damages for pain and suffering are different than for loss of income etc so all damage awards are not the same.
JG
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