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 a substitute teacher who is on call can deduct motor vehicle expenses between the home and the workplace and between schools.
Position:
No
Reasons:
Travel between the home and the place of work is personal. The occasional travel required between schools does not meet the requirement that the taxpayer is "ordinarily required to carry on the duties of the office or employment away from the employer's place of business or in different places."
XXXXXXXXXX 2000-001951
Cornelis Rystenbil, CGA
December 11, 2000
Dear Sir:
Re: Motor vehicle expenses incurred by a substitute teacher
This is in reply to your letter of April 10, 2000 in which you requested our view on whether motor vehicle expenses incurred by a substitute teacher are deductible. You have indicated that your local Tax Services Office (TSO) has informed you that the expenses are non-deductible, but that they were not sure about the travel between schools in the middle of the day.
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3, dated December 30, 1996. However, we are prepared to offer the following general comments.
In computing a taxpayer's income for a taxation year from an office or employment, paragraph 8(1)(h.1) of the Income Tax Act (the "Act") may provide a deduction for "amounts expended by the taxpayer in the year in respect of motor vehicle expenses incurred for travelling in the course of the office or employment". In order for an employee to be entitled to deduct motor vehicle travel expenses by virtue of paragraph 8(1)(h.1) of the Act, the employee must satisfy all the requirements of that paragraph. Subparagraph 8(1)(h.1)(i) requires that the employee was "ordinarily required to carry on the duties of his employment away from the employer's place of business or in different places" and subparagraph 8(1)(h.1)(ii) states that the employee be "required under the contract of employment to pay motor vehicle expenses incurred in the performance of the duties of the office or employment".
It is our understanding that, in general, a substitute teacher is hired for each teaching assignment for a period of one or more days. In these circumstances, it has generally been the Canada Customs and Revenue Agency's (CCRA) position that the employer's place of business must be determined in relation to each teaching engagement and that, in this regard, is considered to be the school at which the substitute teacher teaches. On the basis that the substitute teacher would carry out all of his or her duties with respect to an engagement at one particular school the requirement in subparagraph 8(1)(h.1)(i) is not met.
In addition, an individual is only entitled to deduct expenses for motor vehicles in the course of employment. In relation to such expenses, the CCRA would generally consider the expenses incurred in travelling between a substitute teacher's home and a school and vice versa to be travel of a personal nature and not regarded as having been incurred for travelling in the course of employment. It would also follow that the motor vehicle expenses incurred by the substitute teacher would not be considered to be incurred in the performance of his or her employment duties. With reference to the few occasions that the substitute teacher has to travel in the middle of the day from one school to the next, subparagraph 8(1)(h.1)(i) of the Act states that "... where the taxpayer ... was ordinarily required to carry on the duties of the office or employment away from the employer's place of business or in different places ...". The word "ordinarily" is derived from the word "ordinary" which is defined in Black's Law Dictionary (6th edition) as meaning "regular, usual, normal, common, often, recurring." In our view, the word "ordinarily" does not describe a situation where a substitute teacher is sometimes required to travel between schools. As a result, we confirm that the motor vehicle travel expenses incurred are not deductible even if, on occasion, travel is required between schools.
While we regret that we could not give you a favourable response, we trust that the foregoing comments will be of assistance to you.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
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