13 June 2012 External T.I. 2012-0433181E5 - Volunteer Firefighter Tax Credit (VFTC)

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: What is CRA’s interpretation of the words “on call” as used in the definition of “eligible volunteer firefighting services” in the context of the volunteer firefighter tax credit?

Position: Even if a volunteer carries a pager, cell phone, or blackberry to receive notifications of an emergency, carrying such a device in itself does not establish that the individual was on call.

Reasons: Legislation

From: Mahendran, Ananthy
Sent: Wednesday, June 13, 2012 4:44 PM
To: XXXXXXXXXX
Subject: Volunteer firefighter tax credit - Your enquiry dated January 12, 2012 to IT Rulings

XXXXXXXXXX                                       File #: 2012-043318

Good afternoon Mr. XXXXXXXXXX:

This is in response to your request concerning the volunteer firefighter tax credit (VFTC). Specifically, you requested our interpretation of the expression “on call” as used in the definition of “eligible volunteer firefighting services” in the context of the VFTC.

The following excerpt from our previous correspondence (E2012-0436861M4) may be of assistance.

“To qualify for the VFTC, a volunteer firefighter must complete at least 200 hours of eligible services with one or more fire departments in the year.

Eligible services include all services volunteer firefighters provide to a fire department in the capacity as a volunteer firefighter; however, those services must consist primarily of the following:

• responding to and being on call for firefighting and related emergency calls as a firefighter;
• attending meetings held by the fire department; and
• participating in required training related to the prevention or suppression of fire.

Even if a volunteer carries a pager, cell phone, or blackberry to receive notifications of an emergency, carrying such a device in itself does not establish that the individual was on call. Normally it is the volunteer’s responsibility to inform the appropriate official in the fire department of any periods during which he or she will not be available to respond to a call (for example, while on vacation). The Canada Revenue Agency (CRA) expects that each fire department will examine its on call procedures to certify the number of hours of eligible services. When certifying a volunteer’s eligible hours, it is the CRA’s view that a fire department should assess each volunteer’s on call availability for response in accordance with its own departmental expectations, operational requirements, and applicable policies and procedures.”

The determination of whether an individual’s on call hours are considered to be eligible volunteer firefighting services is dependent on the facts involved. Individuals should rely on their fire department to determine the number of hours of eligible volunteer firefighter services that have been completed in the year. The CRA may ask for a written certification from a fire chief or delegated official within the fire department to verify claims for the VFTC.

You can find more information about the VFTC on the CRA Web site at www.cra-arc.gc.ca/ tx/firefighter.

We trust that the above-noted excerpt and the link above have addressed your enquiry.

Ananthy Mahendran
Senior Rulings Officer
Personal and Credits Section
Financial Industries Division
Income Tax Rulings Directorate
(905) 721-5204