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.
Principal Issues: Whether use of an employer's automobile to travel from home to one or more work locations, at which the employee must carry out his or her duties of employment, is personal.
Position: Yes.
Reasons: Longstanding position that travel between an employee's home and a regular place of employment is considered personal. In this regard, an employee can have more than one regular place of employment.
XXXXXXXXXX Randy Hewlett, B. Comm.
2004-005763
February 17, 2004
Re: Personal Use Of An Employer's Automobile - Multiple Work Locations
We are writing in response to your letter of January 21, 2004, wherein you requested our opinion on the above-noted issue.
In your letter, you indicated that you are required by your employer to report to two work locations. You mainly report to one location, but at least once a week you must travel to another location to carry out employment duties there. For this purpose your employer has provided you with the use of its automobile, which you use to travel from your home to that work location. Because you are required to spend your entire day at that location, you must take the automobile home with you. You are not permitted to use the automobile for personal use during the evenings or weekends. In your view, your use of the automobile is not personal.
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 offer the following comments.
In determining the taxable status of employment benefits under the Income Tax Act in respect of the personal use of an employer provided automobile, 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 our view, both locations at which you are required to report to work are your regular places of employment. For purposes of determining taxable benefits you have received or enjoyed in respect of the use of your employer's automobile, any travel between your home and both locations at which you report to work is personal.
We trust our comments are of assistance.
Yours truly,
John Oulton, CA
Manager
Business and Individual Section
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch
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