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 living expenses while on sabbatical to another city are allowable expenses for the purposes of computing income under 56(1)(o) from research grant.
Position: No.
Reasons: If, while engaged in research work the taxpayer establishes a temporary base in a place other than their home, we would generally consider the taxpayer to be temporarily residing in that place and therefore sojourning rather than travelling. Subparagraph 56(1)(o)(i) specifically provides that personal living expenses may not be deducted in computing income from the research grant.
From: Fitzgerald, Tim
Sent: August 16, 2005 12:12PM
To: XXXXXXXXXX
Subject: Research grant question
XXXXXXXXXX,
This is in response to your email of June 14, 2005 regarding your housing expenses and per diem while on sabbatical to XXXXXXXXXX University.
Generally speaking, grants received in a taxation year to enable a taxpayer to carry on research are included in income under paragraph 56(1)(o) of the Income Tax Act (ITA). However, only that part of such grants that exceeds the total of any allowable expenses incurred by the taxpayer in the year is required to be included in income. Your question deals with the allowable expenses. You have asked whether living expenses incurred while on sabbatical to XXXXXXXXXX University for 4 months are allowable. From the limited information you have provided, we understand that you will be temporarily residing in a place there (away from your permanent home) while conducting research at XXXXXXXXXX. Under those circumstances, we would consider you to be sojourning while at XXXXXXXXXX and as such, your living expenses and per diem amounts while temporarily residing in that place would not be allowable expenses for the purposes of computing income under paragraph 56(1)(o) ITA.
We trust these comments are of assistance. For further discussion on this topic, we refer you to paragraphs 31 - 36 (under sub heading: "Research Expenses") of Information Bulletin IT-75R4 "Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance", which is attached below for your convenience.
Tim Fitzgerald
Income Tax Rulings Directorate
17th Floor, Tower A
320 Queen Street
Ottawa, ON K1A 0L5
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2005
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2005
Email this Content