25 February 2000 Internal T.I. 2000-0006157 - Use of Employer Vehicle by Fire-Fighter

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues: Whether a fire-fighter is in receipt of taxable benefits for use of employer-provided vehicle in 5 different scenarios: The first 4 scenarios are trips to and from the normal worksite. In scenario 5, an employee is scheduled to attend a meeting the following day in a different city. In order to avoid driving 20 kilometres to work that following day, exchanging vehicles, and then doubling back on the drive to the meeting, the employee leaves his or her personal vehicle at the office and uses the employer's vehicle to drive home. The employee then proceeds directly to the meeting the following day.

Position: Scenarios 1 to 4 would be considered personal travel. In scenario 5, there would likely be no benefit included in that employee's income as a result of having taken the employer's vehicle home on the day before the specified business travel and returning it the first morning following the day which concludes the business travel.

Reasons: As stated in paragraph 5 of Interpretation Bulletin IT-63R5, personal use of an automobile includes travel between the employee's home and usual place of work. The

fact that an employee is required or asked by the employer to take the automobile home after work does not change the personal nature of such travel. Also, the fact that an employee travels to his or her residence with a vehicle provided by the employer from the regular place of work, but remains on call as part of the employment contract, does not change the personal nature of the trip. However, where an employee is only infrequently and irregularly provided with the employer's vehicle for the sole purpose of specified business travel, as in scenario 5, benefit would likely be negligible.

		February 25, 2000

	XXXXXXXXXX  Tax Services Office	HEADQUARTERS
	Business Window	J. Gibbons
(613) 957-2135
	Attention: XXXXXXXXXX
		2000-000615

Employer-Provided Vehicles

We are replying to your facsimile of February 3, 2000, in which you requested our views on the taxable benefits of employer-provided vehicles with respect to a number of specific scenarios. The employer is an organization which is responsible for fighting fires in XXXXXXXXXX.

As stated in paragraph 5 of Interpretation Bulletin IT-63R5, personal use of an automobile includes travel between the employee's home and usual place of work. The fact that an employee is required or asked by the employer to take the automobile home after work does not change the personal nature of such travel. Also, the fact that an employee travels to his or her residence with a vehicle provided by the employer from the regular place of work, but remains on call as part of the employment contract, does not change the personal nature of the trip. An exception occurs, however, where (as required by the employer or with the employer's permission) the employee proceeds directly from home to a point of call other than the employer's place of business to which the employee reports regularly or returns home from such a point. These particular trips are not considered to be of a personal nature.

Scenarios 1 to 4

Although there may be some differences in each of the first 4 scenarios described by the taxpayer, the issue in each of the scenarios is whether trips to and from the normal worksite would be considered to have been in connection with or in the course of the taxpayer's office or employment or whether they would be considered personal travel. As discussed above, our view is that these trips are personal in nature.

Scenario 5

In scenario 5, an employee is scheduled to attend a meeting the following day in a different city. In order to avoid driving 20 kilometres to work that following day, exchanging vehicles, and then doubling back on the drive to the meeting, the employee leaves his or her personal vehicle at the office and uses the employer's vehicle to drive home. The employee then proceeds directly to the meeting the following day.

Ordinarily, travel between the office and home before and after the conference would be considered personal travel. However, where an employee is only infrequently and irregularly provided with the employer's vehicle for the sole purpose of specified business travel, such as to meet with an out-of-town client or to attend a training course or conference, there would likely be no benefit included in that employee's income as a result of having taken the employer's vehicle home on the day before the specified business travel and returning it the first morning following the day which concludes the business travel.

John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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