30 March 2000 External T.I. 2000-0017175 - REMOTE WORK SITE

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: Whether the XXXXXXXXXX location qualifies as a remote work site for purposes of subsection 6(6) of the Act.

Position: Yes.

Reasons: The issue was examined in 1989 by the Source Deductions area, after extended discussions between the taxpayer and Mr. Wilson (source deductions) it was concluded that the location would meet the basic tests to qualify as a remote work site. The main reason for this decision was the complete lack of access to the location. There are no roads leading to the location.

		2000-001717
XXXXXXXXXX 	Karen Power, CA
(613) 957-8953
March 30, 2000

Dear XXXXXXXXXX:

Re: Remote Work Site

We are writing in reply to your correspondence of March 28, 2000, wherein you requested our comments on whether the position stated in a letter you received from Revenue Canada, now Canada Customs and Revenue Agency, dated March 10, 1989 is still valid.

Our understanding of the situation is as follows:

• XXXXXXXXXX (the "Club") is a wilderness resort which operates from a location which is 20 miles (as the crow flies) from the closet community. The location is accessible only by boat or float plane. The employees are provided with room and board while working at the club as it not possible for employees to commute on a daily basis.
• The March 10, 1989 letter issued by Revenue Canada indicates that the location of the Club meets the basic tests to qualify as a "Remote Work Site" under the Income Tax Act (the "Act").
• You have indicated that no changes have occurred to the Clubs location/work site since the 1989 letter was issued.

Our Comments

Subsection 6(6) of the Act allows the value of, or an allowance received in respect of expenses incurred by an employee for, board and lodging, for a period at a remote work location to be excluded from employment income. For the remote work location exclusion to apply, the following requirements have to be met:

1) the employee must have worked at a remote work location at which, by virtue of its remoteness from any established community, the employee could not reasonably be expected to have established and maintained a self-contained domestic establishment; and

2) the period while the employee was required by the employee's duties to be at the remote work location was at least 36 hours.

In our view, the Club continues to meets the basic tests to qualify as a remote work. Provided the employees of the Club cannot reasonably be expected to establish and maintain self-contained domestic establishments and the employees are required to be at the work site for a period of at least 36 continuous hours, the value of board and lodging will not be required to be included in the employees' income by virtue of subsection 6(6) of the Act.

The term "self-contained domestic establishment" is defined in subsection 248(1) of the Act as a dwelling-house, apartment or other similar place of residence where a person generally sleeps and eats. A residence is considered to be a "self-contained domestic establishment" if it is a living unit with restricted access that contains a kitchen, bathroom and sleeping facilities. A room or rooms in a hotel, dormitory, boarding house or bunkhouse would not ordinarily be a "self-contained domestic establishment".

We trust our comments will be of assistance to you.

Yours truly,

Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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