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 an employee's use of an employer-provided automobile for travel between the employee's home and regular work place is personal when the employee is required by the employer to take the automobile home daily.
Position: Yes.
Reasons: The primary purpose for the travel is so that the employee can return home for personal reasons.
XXXXXXXXXX Randy Hewlett, B. Comm.
2004-006631
March 18, 2004
Dear XXXXXXXXXX:
Re: Personal Use Of An Employer's Automobile - Multiple Work Locations
We are writing in response to your letter of March 10, 2004, wherein you asked for clarification on the opinion expressed in our letter to you dated February 17, 2004 (our file 2004-005763).
We indicated that travel between an employee's home and a regular place of employment is considered personal in determining the taxable status of employment benefits in respect of use of an employer provided automobile. In your particular situation, we expressed the opinion that the two locations at which you report to work are your regular places of employment and that any travel between your home and these locations is personal. In your recent letter, you inquired whether our opinion would change by virtue of the fact that your employer requires you to take the automobile home daily.
In our view, an employee's use of an employer-provided automobile for travel between the employee's home and regular work place is personal, notwithstanding the fact that the employee may be required by the employer to take the automobile home daily. This would be the case even where, for example, the employee is on call or is traveling to another location the following day that is closer to the employee's home than the employer's place of business. The basis for our view is that the primary purpose for the travel is so that the employee can return home for personal reasons. Consequently, the opinion we provided you in our letter of February 17, 2004, would not change by virtue of the fact that you are required by your employer to take the automobile home daily.
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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