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: Request that bus tickets be eligible for the transit pass credit.
Position: Taxpayer referred to Finance.
Reasons: Finance is responsible for amendments to the Act.
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to the email you sent to XXXXXXXXXX, concerning your request that daily bus tickets be eligible for the public transit pass credit. I received a copy of your email from XXXXXXXXXX office on June 6, 2007.
To qualify for the credit, a particular pass must meet the definition of an "eligible public transit pass" in subsection 118.02(1) of the Income Tax Act. An eligible public transit pass is a document that provides an individual with the right to use the public commuter transit services of a qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days.
The 2007 Federal Budget proposed changes to the rules for determining which passes will qualify for the credit. One of the changes will be to extend eligibility to electronic payment cards. Specifically, the 2007 Budget proposes to allow a tax credit for certain cost-per-trip electronic payment cards, beginning in 2007, provided that they are used for at least 32 one-way trips during a month. The other proposal relates to weekly passes. A weekly pass is now eligible when it entitles the holder to unlimited transit use for between 5 and 7 days and when the user buys at least 4 consecutive weekly passes in a 28-day period. Bus tickets do not meet the requirements of the existing legislation or the proposed changes.
While the Canada Revenue Agency 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 correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I trust the information provided and the 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
Renée Shields
(613) 957-2049
2007-024060
June 20, 2007
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