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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Can a taxpayer use a simplified method to calculate meal expenses described in the definition of "moving expenses" under paragraph 62(3)(c) of the Income Tax Act (the Act), since a simplified method is permitted to calculate meal expenses described in paragraph 62(3)(a) of the definition?
Position: Yes
Reasons: Paragraph 13 of IT-178R3 (Consolidated)
January 7, 2002
Charlottetown TSO Headquarters
Client Services Division Randy Hewlett, B. Comm.
Sharon Bulger 613-957-8973
2001-010177
Moving Expenses
We are writing in response to your facsimile dated September 17, 2001, wherein you requested our opinion on whether taxpayers can use a "simplified method" to calculate meal expenses described in the definition of "moving expenses" under paragraph 62(3)(c) of the Income Tax Act (the Act), since a simplified method is permitted to calculate meal expenses described in paragraph 62(3)(a) of the definition.
The definition of "moving expenses" in subsection 62(3) of the Act includes meal expenses described in both paragraphs (a) and (c). Included under paragraph (a) of the definition are travel costs (including a reasonable amount expended for meals and lodging) incurred in the course of moving the taxpayer and members of the taxpayer's household from the old residence to the new residence. Included under paragraph (c) of the definition is the cost to the taxpayer of meals and lodging near the old residence or the new residence for the taxpayer and members of the taxpayer's household for a period not exceeding 15 days. As explained, in paragraph 13 of Interpretation Bulletin IT-178R3 (Consolidated) Moving Expenses, an individual has the option for 1999 and subsequent years to choose a simplified method of determining those meal expenses incurred in the course of moving that are described in paragraphs 62(3)(a) and (c) of the Act.
We trust our comments are of assistance.
John Oulton, CA
Section Manager
Business and Individual Section
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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