29 September 2003 External T.I. 2003-0038035 - PERSONAL TRAVEL-FORESTRY

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 travel between a forestry employee's home and the cutting site(s) where he reports to work is personal.

Position: Question of fact.

Reasons: Depends on whether the cutting site (or sites) is a regular place of employment.

Randy Hewlett, B.Comm.

XXXXXXXXXX (613)957-8973
2003-003803
September 29, 2003

Dear XXXXXXXXXX:

Re: Personal Travel - Forestry Employees

We are writing in response to your letter of September 9, 2003, wherein you requested our opinion on the above noted issue.

In your letter, you described a situation in which a forestry operator (the "Employer") provided an automobile to each of its forest-harvester operators (the "Employees"), so they could travel daily from their homes to various cutting sites. You indicated that the Employees do not report to the Employer's place of business, but travel directly from their homes to the cutting sites. The time spent at a cutting site ranges from three days to two weeks. The cutting sites are adjacent at times, but also could be several kilometres apart. You inquired whether the travel from the Employees' homes to the cutting sites is personal for purposes of calculating employments benefits 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 on each of your concerns outlined below.

In determining the taxable status of employment benefits in respect of the personal use of motor vehicles, travel between an employee's home and a regular place of employment is considered personal. It will always be a question of fact whether a particular work location is regarded as a regular place of employment. However, any location at or from which the employee regularly reports for work or performs the duties of employment, is considered a regular place of employment. It should also be noted that an employee could have more than one regular place of employment, which can change from time to time because of the nature of the employment situation.

In terms of a forestry operation, a number of factors are relevant in determining whether a cutting site (or sites) can reasonably be regarded as an employee's regular place of employment. These factors include, the regularity at which the employee reports to work at a particular site, how often the site changes, and whether different sites are in the same general area and accessible by a common means of entry. Normally, when a forestry employee reports to work on a regular basis to the same general area by a common means of access, we are of the view that the cutting sites in the area are the employee's regular place of employment and therefore, travel between the employee's home and the sites is personal.

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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