Whitehorse - Tax Court finds that allowances for recreational travel did not qualify for a GST rebate

The City of Whitehorse gave certain employees travel allowances to pay for return flights to Edmonton or Vancouver, which the employees used for personal purposes.  These expenses were not sufficiently connected with the taxpayer's activities to qualify for a GST rebate under ss. 174(a)(iv) and 259(4) of the ETA, notwithstanding that they helped Whitehorse attract and retain employees who otherwise might not work in a remote community.

Scott Armstrong.  Summary of City of Whitehorse v. The Queen, 2012 TCC 298, under ETA s. 174.