17 September 2003 External T.I. 2003-0033715 - EMPLOYER PAID TRAVEL OF SPOUSE

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: Whether benefits received by a blind employee for spousal travel, is taxable when the spouse performs the functions of a travel guide that is normally provided to enable the employee to travel and assist him or her in performing the duties of employment.

Position: Yes, provided that the spouse is travelling solely to perform the functions of an attendant who is required to enable the employee to travel and provide assistance to the employee in the performance of other duties of employment during the trip.

Reasons: Subsection 6(16)

Randy Hewlett, B.Comm.

XXXXXXXXXX 613-957-8973
2003-003371
September 17, 2003

Dear XXXXXXXXXX:

Re: Taxable Benefits Employer-Paid Travel of Spouse

We are writing in response to your letter of July 30, 2003, wherein you requested our opinion on the above noted issue.

You described a situation in which an employer has a policy of providing blind employees with guides when travelling outside of the employment area. The purpose of the travel guide is to enable the employees to travel with ease in an unfamiliar place and also to provide assistance so that the employees can perform their duties of employment. The employer pays all travel expenses of the guides (airfare, taxi, accommodations and meals). You indicated that the employer is proposing to allow the employees' spouses to act as travel guides so that it can save on the cost of accommodations. You inquired whether the reimbursement by the employer of all other travel expenses incurred by spouses would result in a taxable benefit under the Income Tax Act (the "Act").

Our Comments

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. However, we are prepared to offer the following comments.

Subsection 6(16) of the Act provides an exclusion from income of certain employment benefits received by an individual suffering from a severe and prolonged mental or physical impairment, including blindness. Paragraph 6(16)(b) of the Act excludes benefits in respect of expenses for an attendant to assist the individual in the performance of his or her duties of employment. Thus, we are of the opinion that an individual who is blind is not in receipt of a taxable benefit when the employer pays the travel expenses of the individual's spouse, provided that the spouse is travelling solely to perform the functions of an attendant to assist the individual in the performance of his or her duties of employment.

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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