CRA confirms that receipt of a non-taxable s. 6(1)(b)(v) allowance for one type of expense does not preclude s. 8(1)(f) deductions for other types

Although this represents a generous interpretation of s. 8(1)(f)(iv), which could readily be interpreted as indicating that the receipt of any non-taxable allowance by a travelling employed salesperson under s. 6(1)(b)(v) precludes the deduction of all expenses of employment under s. 8(1)(f), CRA has affirmed its position in IT-522R so that, for example, the employee whose only allowance is of $0.xx per kilolmetre driven, would also be able to deduct specific expenses for non-car expenses, e.g., for meals, cell phone and promotional gifts (assuming the other s. 8(1)(f) requriements were satisfied).

Neal Armstrong. Summary of 11 April 2016 External T.I. 2015-0564161E5 Tr under s. 8(1)(f).