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Official acts and guides shed light on what kinds of income there can be and distinguish between taxable and non-taxable income. However, I could not find any definition or even a hint of what is income and what is not income, even in the Income Tax Regulations. As far as I understand, the Regulations only list "Inclusions" (the amounts that are definitely income) and "Deductions" (the amounts that are income but can be deducted).

For example, if I return an item to the store, I receive a refund. Common sense tells me that it is not income, but is there any document that says so?

Other examples may include giving and collecting a loan (without interest), receiving a monetary compensation from a stranger who spilled coffee on your laptop and similar.

My question is specific to Canada, but answers for other jurisdictions are welcome too.

paperskilltrees
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The answer is in the income tax act. Using the Table of Contents makes the analysis simpler. Let's take the example of a consumer purchase refund. We can probably safely say that

  • It is not income from Office or employment
  • It is not income from a Business or property
  • It is not related to capital gains or losses

The only source of doubt would probably be "Other income", although it is generally preferable to make sure to understand the signification of a word as defined by the Act.

Your second example of an interest-free loan falls under the heading "Interest free or low interest loans" under "Other income".

ApplePie
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