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: Does the CRA require proof that a meal was actually consumed by the employee where the employee receives an overtime meal allowance that meets the three requirements for being non-taxable as described in ITTN #40.
Position: No.
Reasons: Position confirmed by Trust Accounts Division. Moreover, to do so would defeat the purpose of reducing the administrative reporting burden.
XXXXXXXXXX 2009-033606
Michael Cooke, C.A.
November 25, 2009
Dear XXXXXXXXXX :
Re: Overtime Meals Allowances Provided to Employees
We are writing in response to your email of August 11, 2009, concerning the recent changes to the CRA's overtime meal policy described in Income Tax Technical News #40 ("ITTN #40"), dated June 11, 2009.
Specifically, you wanted to know whether the Canada Revenue Agency ("CRA") will require either the employer or the employee to provide or retain receipts that an overtime meal was actually consumed by the employee on the day the overtime was worked where the employee received a non-taxable overtime meal allowance described in ITTN #40.
As described in paragraph 40 of IT-522R, Vehicle, Travel and Sales Expenses of Employees, the word "allowance" generally contemplates an amount received by an employee from the employer, in addition to salary or wages, without having to account for its use. Therefore, as discussed on November 19, 2009 (Cooke/XXXXXXXXXX ), we can confirm that the CRA will not require the employer or the employee to retain or provide proof that a meal was actually consumed by the employee on the day the overtime was actually worked where the employee receives a meal allowance that otherwise meets the three requirements for being non-taxable as described in ITTN #40.
We trust that these comments will be of assistance.
Renée Shields
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy & Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2009
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2009
Email this Content