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 a transportation pass to travel via a commuter van or car service for a fee will qualify for the transit pass credit.
Position: No.
Reasons: Does not meet the definition of public commuter transit services. The transportation is not by means of bus, ferry, subway, train or tram.
May 23, 2007
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your email received on April 15, 2007, concerning the public transit pass tax credit.
In your email you indicate that travel to and from work via a commuter van or car service for a fee, such as the service run by the XXXXXXXXXX, where no other public transportation is available, should be included in the forms of transportation that currently qualify for the public transit pass tax credit.
One of the requirements that must be met to qualify for the tax credit is that the transportation services meet the definition of "public commuter transit services." Subsection 118.02(1) of the Income Tax Act defines these services as "services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure". Transportation services offered in a commuter van or car would not be considered to be "by means of bus, ferry, subway, train or tram" and would therefore not qualify for the credit. This information can be found on the Canada Revenue Agency (CRA) Web site at www.cra.gc.ca/whatsnew/items/transit-e.html#monthly in Question 1.
While the CRA is responsible for administering the tax system and applying the current tax legislation as enacted by Parliament, the Department of Finance Canada is responsible for developing tax policy and amending legislation. Any changes to the law would have to be considered by the Minister of Finance and approved by Parliament. I am therefore forwarding a copy of your email to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I appreciate the opportunity to respond to your concerns and I trust that this referral 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
Shaun Harkin
957-9229
2007-023266
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