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:
Will the adverse decision of the Tax Court of Canada in Syed Hassan Jaffar v. Her Majesty The Queen cause the CCRA to change its interpretation of what constitutes a special work site under subsection 6(6) of the Act?
Position:
No.
Reasons:
The case is restricted to the facts. In addition, the Jaffar case was heard by the TCC under the Informal Procedure - pursuant to Section 18.28 of the Tax Court of Canada Act, decisions rendered under this procedure do not have precedential value.
XXXXXXXXXX 2002-012527
Randy Hewlett, B.Comm.
March 11, 2002
Dear XXXXXXXXXX:
Re: Syed Hassan Jaffar v. Her Majesty The Queen
We are writing in response to your e-mail dated February 19, 2002 concerning the above-noted case, which was forwarded to us for reply. The case dealt with whether or not the board and lodging and transportation allowances received by an employee were exempt from taxation by virtue of the "special work site" provision in subsection 6(6) of the Income Tax Act (the Act). The Tax Court of Canada (TCC) rendered its decision on January 25, 2002 in the appellant's favor. You inquire whether or not the decision in Jaffar will alter the Canada Custom and Revenue Agency's (CCRA) current views on the interpretation of this provision.
The interpretation of subsection 6(6) of the Act, as explained in Interpretation Bulletin IT-91R4 Employment at Special Work Sites or Remote Work Locations, dated June 17, 1996, will not be changed as a result of the court's decision in Jaffar. It should be noted that this case was heard by the TCC under the Informal Procedure. Section 18.28 of the Tax Court of Canada Act provides that decisions rendered as a result of this procedure do not have precedential value.
We trust our comments will be of assistance to you.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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