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Is Road accident fund settlement taxed?

Posted 26 October 2014 under Tax Questions


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My wife received an Road accident fund settlement last year (2013) after she was injured as a passenger in a car accident some years ago. Our understanding is that this settlement amount is tax free and does not have to be declared (according to the attorneys). The question is, does this amount have to be indicated anywhere on either my wife's, or my income tax returns (i.e. under non taxable income section) since the money was deposited into her bank account. We are married in C.O.P

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TaxTimTaxTim says:
26 October 2014 at 23:21

There are sections of non-taxable amounts on the tax return, but this does not apply to RAF payouts.


Bob says:
27 October 2014 at 18:23

Thank you for the prompt response. So if I understand your answer correctly, we don't have to declare this RAF pay-out anywhere on either of our tax returns.

Regards
Mark


TaxTimTaxTim says:
28 October 2014 at 17:14

It is a non-taxable event and the only place on the Return for "amounts not considered taxable" does not include a space for RAF payouts so there isn't a need to enter it.


Bob says:
28 October 2014 at 20:10

Thank you. Much appreciated.

Regards
Mark


TaxTimTaxTim says:
29 October 2014 at 9:40

Only a pleasure!


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