Principal Issues: An association provides ambulance services to rural areas, towns, villages, and municipalities. These entities appoint members to the board of the association which is responsible for the overall operation of the association.
One of the individuals, who was hired to provide ambulance services as an ambulance technician, also carries out administrative services as the co-ordinator of the ambulance services (an administrative position). The individual receives $XXXXXXXXXX for his duties as the co-ordinator.
1. With respect to the co-ordinator, paragraph 8(1)(a) of the Act sets out an exclusion where the taxpayer is employed in the year by the employer "in connection with the performance of any of the duties referred in subparagraph (ii) or similar duties" (subparagraph (ii) refers to an ambulance technician, or a firefighter, or a person who assists in the search or rescue of individuals or in other emergency situations"). Is this exclusion applicable to the co-ordinator?
2. Are the individuals, who are considered to be volunteers and are hired by an association to provide ambulance services, eligible for the deduction under paragraph 8(1)(a) of the Income Tax Act?
Position: 1. No 2. Yes
Reasons: 1. As the duties of the co-ordinator are administrative, the exclusion is not considered to be applicable. The position is also consistent with technical comments made by the Department of Finance which state that "the deduction will not, however, be available to a volunteer who is also employed by the same government, municipality or public authority to perform, otherwise than as a volunteer, the same or similar duties."
2. The information provided to us indicates that all the necessary requirements have been satisfied. A summary of their circumstances is that the individuals receive $XXXXXXXXXX for the first hour of an emergency call and $XXXXXXXXXX to $XXXXXXXXXX for each additional hour. However, in the case of "on call" time they are only paid at the rate of $XXXXXXXXXX per hour and amounts they are paid for "on call" time accounts for XXXXXXXXXX % to XXXXXXXXXX % of the remuneration they receive for being emergency medical personnel.