CRA indicates that a s. 6(1)(b)(vii) reasonable allowance could include an apartment allowance re legislative sittings away from the constituency office

Temporary residence allowances are paid to members of a legislative assembly where their permanent residence is more than a specified distance away in order to cover the cost of apartments in that city. CRA implicitly accepted that such allowances potentially could be exempt under s. 6(1)(b)(vii) on the basis that they were travel allowances paid for staying at a location that was at a distance from the “employer’s” ordinary establishment (i.e., the home riding constituency office, keeping in mind that the members, as office holders, were deemed employees). However, CRA added that “[w]hether the allowance is reasonable … would need to be assessed on a case by case basis.”

Neal Armstrong. Summary of 8 November 2019 External T.I. 2019-0820401E5 under s. 6(1)(b)(vii).