23 October 2003 External T.I. 2003-0028165 - EMPLOYER PAID TRAVEL

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: Taxable status of employer-paid travel in a situation where the employee delays relocation.

Position: Did not provide an opinion.

Reasons: Did not have sufficient information.

Randy Hewlett, B.Comm.

XXXXXXXXXX 613-957-8973
2003-002816
October 23, 2003

Dear XXXXXXXXXX:

Re: Taxable Benefits Employer-Paid Travel

We are writing in response to letters from your company, dated July 7 and October 6, 2003, wherein our opinion was requested on the taxable status of employer-paid allowances and expenses that were incurred in respect of the travel of a new employee who delayed relocating for personal reasons.

Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office (TSO). In this regard, please refer to paragraph 22 of IC-70-6R5.

We generally provide an opinion on how the Act applies in particular circumstances, provided we have a sufficient description of the facts as well as copies of relevant documentation. Of critical importance to determine the income tax implications for the particular employee in question, is the contract of employment. This information, however, was not provided with your letter of October 6, 2003, and therefore, we are unable to provide you with our opinion.

Should you require further assistance in this matter, we suggest that you should contact the local TSO. It should be noted, however, that you will need to provide the TSO with a complete description of the facts and copies of all relevant documentation, including the contract of employment. If requested by the TSO, we will provide them with our assistance in determining the taxable status of the travel costs described in your letters.

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