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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Whether reasonable travel and motor vehicle expenses may be claimed by a police officer for expenses incurred while on special duty pay.
Position: Question of fact.
Reasons: The requirements of paragraphs 8(1)(h) and 8(1)(h.1) of the Income Tax Act must be met.
June 24, 2002
Income Tax Appeals HEADQUARTERS
John Crowley James Gibbons, CGA
Manager
2002-014738
Deduction of employment expenses for special duty pay
We are responding to your memorandum dated June 14, 2002, concerning the deduction of reasonable travel and motor vehicle expenses by a police officer for travel between the police station and another location while on "special duty pay" (SDP).
XXXXXXXXXX
Facts
As we understand it, SDP is the provision of police services on a cost recovery basis where there is a special need for such services by clients who are willing to pay for such services. For example, a person organizing an exhibition, concert or sporting event, which might be expected to attract a large crowd, may require police officers to direct traffic to and from the event to keep order while the event is being staged. The following are some of the salient features of SDP:
? Police officers are not required to undertake SPD but rather it is assigned to only those officers who volunteer for it.
? It is performed only during the officer's time off from ordinary duty.
? The officer's compensation is paid directly to the officer by the client whose request led to the assignment of the SPD.
? It is structured and operated in accordance with rules and policy directives which form part of the body of directives governing all aspects of police operations.
The deduction of travel and motor vehicle expenses incurred by a police officer while on SDP is governed by paragraphs 8(1)(h) and 8(1)(h.1) of the Act respectively. In our view, there is no intrinsic reason that we can see which would prevent police officers from being able to deduct reasonable travel and motor vehicle expenses incurred while travelling from the police station to the client's venue to begin SDP. On the other hand, only the employer can fully determine whether a particular employee meets the requirements of paragraphs 8(1)(h) and 8(1)(h.1). Thus, it is only by filing a T2200, as required pursuant to subsection 8(10) of the Act, that an employee can establish that or she is eligible to deduct travel and vehicle expenses.
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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