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
Can payments made to full-time fire-fighters as volunteers for the same municipality be eligible for the $1,000 tax free allowance under subsection 81(4) of the Act?
Position TAKEN
No
Reasons FOR POSITION TAKEN
Wording in 81(4)(b)(ii) - volunteer duties are the same or similar to that to which they are paid for by that same employer.
XXXXXXXXXX 2000-005891
C. Tremblay, CMA
Attention: XXXXXXXXXX
January 16, 2001
Dear XXXXXXXXXX:
This is in reply to your letter of November 29, 2000, wherein you request our opinion as to whether in the situation described therein, the full-time fire-fighters who also work as volunteer fire-fighters would qualify for the $1,000 emergency volunteer exemption pursuant to proposed subsection 81(4) of the Income Tax Act (the "Act").
You state that the Municipality currently employs full-time fire-fighters who respond as volunteers when they are not working as full-time fire-fighters. When they respond as volunteer fire-fighters they are paid by the point system the same as the other volunteer fire-fighters and they do not receive overtime pay calculated using their full-time hourly rate, or mileage. Further, they receive two T-4's, one for the full-time earnings and one for the volunteer payments.
Pursuant to proposed subparagraph 81(4)(b)(ii) of the Act, where an individual was employed or otherwise engaged by the employer otherwise than as a volunteer, in connection with the performance of any duties or of similar duties, the exemption under subsection proposed 81(4) of the Act will not be available. Accordingly, the entire allowance will be taxable when paid by the same employer to full-time fire-fighters performing the same or similar duties as volunteers.
We regret we could not provide you a more favourable reply. We trust however that our comments are of assistance.
Yours truly,
Jim Wilson, CGA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislative Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2001
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2001