3 July 2007 External T.I. 2007-0224411E5 - Teachers' Convention Travel Expenses

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 travel expenses incurred by an Alberta teacher in complying with his or her legal and professional obligations under the Alberta School Act (1988) to attend the annual two-day teachers' convention are deductible from employment income.

Position: Where an Alberta teacher fits the facts and requirements as described in the Imray case, including a duly completed form T2200, reasonable travel expenses are deductible from employment income.

Reasons: The facts in this situation are very similar to the Imray case.

								2007-022441
XXXXXXXXXX  						Kathryn McCarthy, CA
(613) 948-6106
July 3, 2007

Dear XXXXXXXXXX:

Re: Teachers' Convention Travel Expenses

This is in response to your e-mail of February 14, 2007, inquiring about the above noted subject and further to our letter to you dated January 29, 2007 (our file number E2006-0212301). You inquired as to the deductibility from employment income under the Income Tax Act (the "Act") of travel expenses incurred by a teacher to attend a teachers' convention.

The situation outlined in your letter appears to relate to a factual one, involving a specific taxpayer. It is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advanced income tax ruling. For more information about how to obtain a ruling, please refer to Information Circular 70-6R5, "Advanced Income Tax Rulings, dated May 17, 2002. This Information Circular and other CRA publications can be accessed on the internet at http://www.cra-arc.gc.ca. Should your situation involve a specific taxpayer and a transaction that has already been completed, you should submit all relevant facts and documentation to the appropriate Tax Services Office ("TSO") for their views. A list of TSO's is available on the "Contact Us" page of the CRA website. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.

Certain expenses incurred by a taxpayer are deductible from employment income under section 8 of the Act. In general terms, paragraphs 8(1)(h) and (h.1) of the Act provide that where a taxpayer was ordinarily required to carry on the duties of his or her employment away from the employer's place of business or in different places, the taxpayer may deduct certain travel expenses. Where a taxpayer travels in the course of employment, away from the municipality and metropolitan area where his or her employer's establishment to which he or she ordinarily reports for work is located for a period of at least 12 hours, subsection 8(4) of the Act will not apply to disallow the deduction of the cost of meals consumed during that period.

The Federal Court Trial Division in the Imray case (98 DTC 6580) considered the interpretation of the word "ordinarily" as used in subparagraph 8(1)(h)(i) of the Act. It was determined that the appellants were complying with their legal and professional obligations under the Alberta School Act (1988) to attend the annual two-day teachers' convention. Attendance is mandated under the School Act as part of the teachers' employment contract with their school boards. The School Act provides that the annual two-days of professional development spent at the teachers' convention are considered "teaching days". The School Act also provides that the employer shall deduct 0.5% of the appellants' annual teachers' salary for each teaching day that the appellants were absent, unless the absence is approved by the employer or the Minister of Education or relates to medical illness, disability or treatment. Based on these considerations, it was decided that the appellants, who had claimed deductions for motor vehicle, hotel and meal expenses incurred to attend a teachers' convention, were ordinarily required to carry on the duties of their employment away from their employer's place of business or in different places. The appeals were, therefore, allowed.

Where an Alberta teacher fits both the facts as described in Imray and the requirements under the Act, reasonable travel expenses for attending the convention are deductible from employment income. Subsection 8(10) of the Act requires the employer to certify that the conditions for claiming travel expenses are met by the teacher for the tax year concerned in order for the expenses to be deductible from employment income. Accordingly, the teacher must have a duly completed form T2200, Declaration of Conditions of Employment.

Yours truly,

Renée Shields
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch