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: Can a volunteer deduct gas expenses?
Position: No
Reasons: To be deductible, an expenditure must either be incurred to earn income from business, property or employment or be specifically described in the Income Tax Act.
September 26, 2007
XXXXXXXXXX
Dear Colleague:
I am writing in response to correspondence sent from your office to the office of my predecessor, the Honourable Carol Skelton, which she received on August 9, 2007, concerning the deductibility of gas expenses incurred by a constituent who engages in a substantial amount of volunteer work.
The Income Tax Act provides for deductions from income, or tax credits, for certain expenditures. To be deductible or eligible for a credit, an expenditure must either be incurred to earn income from business, property, or employment, or be specifically described in the Act. Vehicle expenses incurred by a volunteer would not meet either of these conditions, and the Act does not provide for income tax relief in this regard.
I would note, however, that if one or more of the organizations for which your constituent volunteers reimburses her reasonable vehicle expenses, this reimbursement would not be taxable.
I trust that the information provided clarifies the position of the Canada Revenue Agency on this matter.
Sincerely,
The Honourable Gordon O'Connor, P.C., M.P.
Renée Shields
957-2049
2007-024919
August 22, 2007
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