5 April 2012 Ministerial Correspondence 2012-0436941M4 - VFTC - on call and training

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: 1. How to determine the number of hours of eligible volunteer firefighting services that are classified as training or on call?
2. Eligibility for the VFTC of other emergency calls such as medical emergencies or vehicle accidents.
3. Whether time spent on medical first responder training or related training qualifies as eligible volunteer firefighting services.

Position: 1. The Canada Revenue Agency (CRA) expects that each fire department will examine its on-call procedures to certify the number of hours of eligible volunteer firefighting services. When certifying volunteer firefighters’ 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.
2. Generally, when volunteers devote time in their capacity as volunteer firefighters for other related emergency calls, the time devoted to these calls qualifies as eligible volunteer firefighting services and can be included when counting the number of hours of eligible services.
3. If the training required of a volunteer firefighter according to the policies and procedures of a fire department related to the prevention or suppression of fires includes certain medical training, the time spent on this medical training will qualify as eligible volunteer firefighting services for purposes of the VFTC.

Reasons: 1, 2, & 3: See response

XXXXXXXXXX

Dear XXXXXXXXXX:

The office of your member of Parliament, XXXXXXXXXX, forwarded to me a copy of your correspondence, which I received on February 7, 2012, regarding the new volunteer firefighter tax credit (VFTC).

You ask for information that could help you determine the number of hours of eligible volunteer firefighting services that are classified as training or on call.

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 the services volunteer firefighters provide to a fire department in their 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 preventing or suppressing fires.

Even if a volunteer carries a pager or a phone to receive notifications of an emergency, carrying such a device 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 able 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 volunteer firefighting services. When certifying volunteer firefighters’ 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.

You want to know the CRA’s views on the eligibility for the VFTC of other emergency calls such as medical emergencies or vehicle accidents. Based on the legislation introduced in the Income Tax Act, eligible services include not only firefighting calls but also other related emergency calls. Generally, when volunteers devote time in their capacity as volunteer firefighters for other related emergency calls like those you mention, the time devoted to these calls qualifies as eligible volunteer firefighting services and can be included when counting the number of hours of eligible services.

You also ask if time spent on medical first responder training or related training qualifies as eligible volunteer firefighting services. Based on the definition of “eligible volunteer firefighting services” in section 118.06 of the Act, eligible services include only those hours that are spent on required training related to the prevention or suppression of fires. If the training required of a volunteer firefighter according to the policies and procedures of a fire department related to the prevention or suppression of fires includes certain medical training, the time spent on this medical training will qualify as eligible volunteer firefighting services for purposes of the VFTC.

Individuals should rely on their fire department to determine the number of hours of eligible volunteer firefighting services that have been completed in the year. The CRA will ask for a written certification from a fire chief or delegated official within the fire department to verify claims for the VFTC.

I trust that the information I have provided is helpful.

Yours sincerely,

Gail Shea, P.C., M.P.
Minister of National Revenue

Ananthy Mahendran
(905) 721-5204
2012-043694