Disasters and Disaster Relief: Taxation Information About Financial Assistance Payments From Governments

arrangement, the business can call the CRA at 1888-863-8657.

For general information on government assistance received by a business in the course of earning business income, see Interpretation Bulletin IT-273R2, Government Assistance –General Comments

Goods and services tax/harmonized sales tax (GST/HST)

In general, the provision of financial assistance by a government (or other grantor) to an individual or a business to subsidize the individual or business for losses or expenses resulting from a disaster will not be considered a supply and, therefore, the GST/HST will not apply to it, as long as there is no direct link between the financial assistance and a supply by the individual or business to the grantor or a third party specified by the grantor. For more information, see Technical Information Bulletin B-067, Goods and Services Tax Treatment of Grants and Subsidies.

Source: https://www.canada.ca/en/revenueagency/campaigns/about-canada-revenueagency-cra/disasters-disaster-relief/financialassistance-payments-your-government.html