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.
Reasons: Position confirmed by Trust Accounts Division. Moreover, to do so would defeat the purpose of reducing the administrative reporting burden.
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.
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy & Regulatory Affairs Branch
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