PETITION FROM COMMUNITY SUPPORT WORKERS (Arden Professional Client Care employees/contractors) 

REGARDING CRA INTERPRETATION OF INCOME TAX ACT PARAGRAPH 81(1)(h.1) 

Submitted to: 
Office of the Taxpayers’ Ombudsperson 
Government of Canada 
Ottawa, Ontario 

Submitted to: 
Kody Blois, MP – Kings—Hants 
House of Commons 
Ottawa, Ontario 

Copied to: 
John A. Lohr, MLA – Kings North 
Nova Scotia House of Assembly 

Submitted by: 
Steve Keddy 
Forest Home, Nova Scotia 
Date: March 29, 2026 

Subject: Request for Assistance Regarding CRA Determination on Income Tax Act Paragraph 81(1)(h.1) 
We, the undersigned workers and residents of the Kings—Hants and Kings North regions, wish to express our concern regarding a recent determination by the Canada Revenue Agency (CRA) affecting workers who provide emergency and community support services funded through provincial community services programs. Arden also employs workers in other parts of the province effected by this issue and whose signatures may appear on this petition.

For several years, workers in this program were hired under the understanding that their remuneration qualified as tax-exempt under paragraph 81(1)(h.1) of the Income Tax Act.

Based on this understanding: 
• Workers were not required to submit Social Insurance Numbers when hired. 
• No income tax deductions were withheld from pay. 
• Workers accepted wages close to minimum wage specifically because the income was represented as tax-exempt. 

Following a recent CRA audit of the organization administering this program (Arden Professional Client Care), workers have now been informed that their 2025 income does not qualify for the exemption and that they are required to provide SIN numbers and pay income tax on earnings from 2025. The CRA is currently auditing 2024 and 2023 for a similar reason. 

This situation has created significant concern for hundreds of workers and families who relied on the information provided when they accepted this work. 

We respectfully request that our elected representatives: 
 
1. Request clarification from the CRA regarding the interpretation and application of paragraph 81(1)(h.1) of the Income Tax Act in relation to workers providing emergency and community support services funded through provincial programs. 

2. Advocate for fair treatment of workers who relied on representations that their compensation was tax-exempt. 

3. **Advocate for relief **, specifically waiving retroactive tax liability and penalties for workers affected by this situation. 
 
These workers provide important services supporting vulnerable individuals in our communities. We believe workers who acted in good faith deserve fair consideration and assistance in resolving this matter.