Beaubier
J.T.C.C.:
—
This
matter
was
heard
at
Toronto,
Ontario,
pursuant
to
the
Informal
Procedure
on
September
23,
1996.
The
Appellant
was
the
only
witness.
At
issue
is
the
Appellant’s
claim
to
deduct
employment
expenses
in
his
1990
taxation
year.
The
expenses
he
claims
relate
to
his
car
and
total
$11,433.52.
The
car
was
owned
by
the
Appellant’s
wife,
or
the
Appellant
and
his
wife.
He
claimed
depreciation
of
$5,771.89,
bank
interest
on
the
financing
and
other
items
in
full.
His
claims
for
“car
expenses”
and
“repairs”
were
reduced
by
20
per
cent
for
personal
use.
He
did
not
consider
travel
to
and
from
home
and
work
to
be
“personal”.
Paragraph
8(l)(h.l)
of
the
Income
Tax
Act
reads:
Motor
vehicle
travelling
expenses
-
where
the
taxpayer,
in
the
year,
(i)
was
ordinarily
required
to
carry
on
the
duties
of
employment
away
from
the
employer’s
place
of
business
or
in
different
places,
and
(ii)
was
required
under
the
contract
of
employment
to
pay
motor
vehicle
expenses
incurred
in
the
performance
of
the
duties
of
the
office
or
employment,
amounts
expended
by
the
taxpayer
in
the
year
in
respect
of
motor
vehicle
expenses
incurred
for
travelling
in
the
course
of
employment,
except
where
the
taxpayer
(iii)
received
an
allowance
for
motor
vehicle
expenses
that
was,
by
reason
of
paragraph
6(l)(b),
not
included
in
computing
the
taxpayer’s
income
for
the
year,
or
(iv)
claimed
a
deduction
for
the
year
under
paragraph
(f);
Sub-paragraph
8(l)(h.l)(ii)
is
particularly
important
in
this
appeal
since
the
Appellant’s
contract
of
employment
was
governed
by
a
Collective
Agreement.
Page
42
of
that
Collective
Agreement
states
that:
12.04.01
Transportation
The
method
of
transportation
from
job
to
job
during
regular
hours,
overtime
hours
or
travelling
time
authorized
by
the
Employer,
shall
be
that
for
which
the
Employer
will
accept
responsibility
and
give
monetary
recognition.
It
is
agreed
that,
when
employees
agree
to
use
their
personal
vehicles
for
transportation
as
outlined
in
this
provision,
they
shall
be
reimbursed
at
the
rate
of
thirty-six
(36)
cents
per
kilometre.
Effective
May
1,
1991
the
rate
will
be
thirty-eight
(38)
cents
per
kilometre.
The
Employer
shall
also
assume
the
cost
of
the
difference
between
the
employee’s
own
standard
insurance
and
necessary
business
insurance.
It
is
understood
that
there
will
be
no
geographical
restrictions
on
the
use
of
personal
or
company
vehicles.
Employees
will
not
be
required
to
carry
material
other
than
their
own
personal
tools
in
their
personal
vehicles.
12.04.02
At
no
extra
expense
said
vehicle
shall
be
permitted
to
carry
two
(2)
persons
in
addition
to
the
driver,
where
all
are
going
to
the
same
destination,
but
no
tools
or
materials
which
would
normally
be
shipped
by
the
Employer.
It
is
also
agreed
that
men
shall
not
be
required
to
use
their
own
vehicles
inside
the
primary
jurisdiction,
but
there
shall
be
no
restrictions
on
the
use
of
company
owned
or
leased
maintenance
vehicles.
Ownership
of
a
personal
auto
shall
not
be
a
requirement
of
employment
nor
shall
an
employee
be
required
to
use
his
own
vehicle
if
the
employee
objects.
The
Appellant
was
paid
mileage
by
his
employer
pursuant
to
the
Collective
Agreement
for
travel
on
the
job.
In
the
Court’s
view
the
Collective
Agreement’s
provision
for
transportation
and
the
payments
to
the
Appellant
pursuant
thereto
are
such
that
the
Appellant
was
not
required,
under
the
contract
of
employment,
to
pay
motor
vehicle
expenses
incurred
in
the
performance
of
the
duties
of
his
employment.
The
appeal
is
dismissed.
Appeal
dismissed.
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