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.
Principal Issues: Will Go-Transit's 10-ride pass allow a holder to claim the public transit pass credit?
Position: No.
Reasons: The 10-ride pass will not meet the definition of eligible public transit pass.
XXXXXXXXXX Michael Cooke, CA
2008-029899
February 3, 2009
Dear XXXXXXXXXX :
Re: Technical Interpretation Request - Public Transit Tax Credit
We are writing in response to your letter of October 29, 2008, wherein you asked for our views on the public transit tax credit. Specifically, your question is whether a 10-trip pass to use Go Transit would be eligible for the public transit tax credit.
To qualify for the public transit tax credit, a taxpayer must have purchased either an "eligible public transit pass" or an "eligible electronic payment card" that was issued by or on behalf of a "qualified Canadian transit organization" as those terms are defined in subsection 118.02(1) of the Income Tax Act (the "Act").
Generally speaking, a weekly transit pass issued by or on behalf of a qualified Canadian transit organization will be an eligible public transit pass where the pass entitles the holder to unlimited transit use for an uninterrupted period of at least five consecutive days if the combination of that transit pass and one or more such transit passes give the holder the right to use those public commuter services on at least 20 days in a 28-day period.
Due to this definition, the 10-trip transit passes issued by Go Transit, which does not provide for unlimited transit use, would not be an eligible public transit pass even where such a pass, along with one or more such transit passes, happens to be used for travel by the holder on 20 or more days in a 28-day period.
We trust our comments will be of assistance to you.
Yours truly,
Renée Shields
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2009
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2009
Email this Content