Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: The interpretation of the phrase "while away from home" in relation to paragraph 18(1)(h) of the Income Tax Act.
Position: The phrase "while away from home" in paragraph 18(1)(h) is not defined in the Income Tax Act and thus should be interpreted in its ordinary sense. Accordingly, it refers to a period when one is away from the place where one lives. However, in understanding paragraph 18(1)(h), it is important to consider the entire phrase "while away from home in the course of carrying on the taxpayer's business." This means that travel expenses incurred by a businessperson travelling to and from his or her home to the business location (or one of the business locations) are not deductible business expenses, since they are not incurred in the course of carrying on the taxpayer's business.
Reasons: Ordinary rules of interpretation.
XXXXXXXXXX J. Gibbons
2000-001407
April 18, 2000
Dear XXXXXXXXXX:
We are replying to your facsimile of March 15, 2000, in which you requested our interpretation of the phrase "while away from home" in relation to paragraph 18(1)(h) of the Income Tax Act. This paragraph denies taxpayers a business deduction for personal or living expenses "other than travel expenses incurred by the taxpayer while away from home in the course of carrying on the taxpayer's business."
The phrase "while away from home" in paragraph 18(1)(h) is not defined in the Income Tax Act and thus should be interpreted in its ordinary sense. Accordingly, it refers to a period when one is away from the place where one lives. However, in understanding paragraph 18(1)(h), it is important to consider the entire phrase "while away from home in the course of carrying on the taxpayer's business." This means that travel expenses incurred by a businessperson travelling to and from his or her home to the business location (or one of the business locations) are not deductible business expenses, since they are not incurred in the course of carrying on the taxpayer's business.
We trust that these comments will be of assistance.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate
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