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 travel between the trustee's ward and the regional office is not personal since the trustees are under statutory obligation to reside in their ward.
Position:
The travel is personal
Reasons:
Travel between the employee's home and his workplace is personal. While not crucial to the issue, there is no requirement for the trustees to live in their ward in order to perform their daily duties. Section 21 of the Local Authorities Elections Act of Alberta deals with the qualification of candidates to be eligible for (re)election.
XXXXXXXXXX 2000-001812
Cornelis Rystenbil, CGA
Attention: XXXXXXXXXX
November 15, 2000
Dear Madam:
Re: Municipal Officer's Travel
This is in your reply to your correspondence of March 28, 2000 in which you ask for our view on your belief that "... the travel between the trustee's ward and the regional office is not personal since the trustees are under statutory obligation to reside in their ward ..." You also indicated that it is not uncommon for the trustees to take the opportunity to visit outlying regions of their ward on their way to the regional office. We apologize for the delay in responding to your inquiry.
You had previously asked the opinion on the matter from the Edmonton Tax Services Office (the "TSO") which informed you in their letter dated February 11, 2000 that the per kilometre reimbursement for travel expenses between the home and place of employment is a taxable benefit.
You indicated that trustees were required to live in their wards as required per subsection 21(1) of the Local Authorities Elections Act of Alberta (LAEA). This subsection reads as follows:
Qualification of candidates
21(1) A person may be nominated as a candidate in any election under this Act if on nomination day he ... (b) has been a resident of the local jurisdiction and the ward, if any, for the 6 consecutive months immediately preceding nomination day ..."
Subsection 21(2.1) states the following:
21(2.1) Notwithstanding subsection (1), a candidate for trustee of a board of a school district that is wholly or partly within the boundaries of a city is not required to be a resident of the ward in either a general election or a by-election, but must be a resident of the school district.
In our view, there is no requirement for the trustees to live in their ward in order to perform their daily duties. Section 21 of the LAEA deals with the qualification of candidates to be eligible for (re)election. In any event, we do not think that this is crucial to the resolution of this issue.
The per kilometre allowance paid by the Board to a trustee is not a nonaccountable allowance since claims have to be submitted and verified. To the extent that this accountable allowance is for business travel, it will not be included in a trustee's income. However, to the extent that the Board reimburses a trustee for personal travel, the allowance, or reimbursement, is required to be included when computing the exempt portion of the trustee's income. As a general rule, travel between one's residence and work location is personal travel. Ordinarily, the work location for a school board trustee is the Board office. An exception to the general rule occurs when the employee or officer is required or permitted to proceed directly from home to a point of call other than the ordinary place of work. In these situations, the travel is considered related to the duties of the office or employment rather than personal.
The Canada Customs and Revenue Agency's long standing position that travel between the home and workplace is personal in nature is not altered by the fact that an employer may require an employee to perform an employment-related function (such as visiting outlying regions) during the course of the trip between the home and workplace. Where the primary purpose of a particular trip is personal in nature, then it is treated as such for tax purposes regardless of any employment activity which may take place during the course of that trip. The primary purpose of any such trip is always a question of fact.
We concur with the opinion of the TSO that the amount paid by the school board to the trustees for travel incurred between the home and the place of work is income from an office or employment and is to be included in income as per paragraph 6(1)(b) of the Income Tax Act. In addition, as stated by the TSO, should the trustees be paid an amount for travel to and from board meetings which is not based on a per kilometer rate, it may form part of the one-third of income which can be excluded for elected officials. Please see IT-292 for further guidance.
We hope our comments were of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings Directorate
c.c. Kent Hendricks
Edmonton Tax Services Office
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