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 swipe cards will qualify for the transit pass tax credit under the proposed 2007 Federal Budget.
Position: No.
Reasons: Swipe cards providing a limited number of rides that the user can choose to use within a month or to carry forward for use in another month will not qualify under the proposed changes.
May 17, 2007
XXXXXXXXXX
Dear Colleague:
I am writing to follow up on my letter to you of March 19, 2007, concerning the eligibility of one of your constituents for the public transit pass tax credit.
The proposed 2007 Federal Budget makes changes to the eligibility rules for the credit.
One of the changes is to extend the eligibility to include electronic payment cards. Specifically, the 2007 Budget proposes to allow a tax credit for certain cost-per-trip electronic payment cards that, beginning in 2007, must be used for at least 32 one-way trips during an uninterrupted period not exceeding 31 days. However, swipe cards providing a limited number of rides that the user can choose to use within a month or to carry forward for use in another month, such as your constituent described, would still not qualify under the proposed changes.
I trust that this information will be helpful.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
c.c.: The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Kathryn McCarthy
(613) 948-6106
2007-022589
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