CRA does not consider a pilot’s aviation headset to be a “tool”

CRA considers that pilots are not entitled to the deduction under s. 8(1)(s) for tools for the cost to them of aviation headsets (which are worn so as to prevent hearing loss and to facilitate communications with Air Traffic Control). It considered that such headsets come within the exclusion in s. 8(6.1)(d), from what otherwise would qualify as an eligible “tool,” for an “electronic communication device” and also considered that the headsets did not come within its understanding of the ordinary meaning of "tool," namely, an item that is “designed to create a physical change in something or be used as an instrument of measurement or manipulation.”

CRA also indicated that a pilot could not claim the deduction under s. 8(1)(g) (“transport employee’s expenses”) for the individual’s meal expenses incurred while away from the municipality of the employer establishment where the pilot reported for work (the “home city”), because the individual would fly back to the home city on the same day, and CRA considered that s. 8(1)(g) required that the “employee must generally be away from home overnight in the performance of their employment duties.” However, such meal expenses could be deducted pursuant to s. 8(1)(h) assuming inter alia that, as required by s. 8(4), the pilot was away from the home city on each trip for at least 12 consecutive hours.

Neal Armstrong. Summaries of 26 May 2023 External T.I. 2023-0962521E5 under s. 8(1)(s), s. 8(1)(g) and s. 8(1)(h).