Tax Note – Honorariums and Payments to Indigenous Individuals

The new Tri-Agency Guide on Financial Administration is now in effect for all eligible administering institutions as of April 1, 2020.

To support members during the transition to the new principles-based Guidelines, CAUBO has developed a series of resources. As the Guide is no longer prescriptive, institutions will need to rely on their own institutional policies to assess whether expenses charged to a research grant are compliant.

Last spring, CAUBO administered a series of surveys to gather information on existing institutional polices and practices related to grant administration. The results provide a detailed overview of the policies and procedures already in place at member institutions and reveal the extent to which they meet the requirements of the new Guide. The survey results revealed that the majority of institutions did not have a policy related to payments for Indigenous individuals.

To address this need, KPMG was retained to develop a note to clarify the tax treatment of payments made to indigenous individuals.

Institutional members can access this new technical tax note by clicking here.

The technical note outlines the income tax treatment and reporting requirements of universities in Canada on their payment of honorariums to recipients in Canada. Two types of payments are discussed in the note: research participant fees and honorarium or other fees paid to indigenous individuals.

We are planning a webinar on this topic – stay tuned for details!