Income Tax Severed Letters - 2017-03-15

Principales Questions: (1) Is the CRA still of the view that separated individuals can continue to share the same residence and be considered as living separate and apart for Canadian income tax purposes? (2) What are the processes and policies that are followed by the CRA when a couple claims to be separated, while still living under the same roof? (3) In such a situation, what information must be provided by a taxpayer in order to have his or her separation recognized by the CRA for Canadian income tax purposes?

Position Adoptée: (1) Yes. (2) The CRA generally accepts the marital status declared by an individual on his or her income tax return when assessing the return. However, certain claims made on the return may be reviewed, either before or after assessment. Additional information pertaining to the individual’s marital status may be requested at that time. In the case of a claim for child and family benefits, such as the Canada Child Benefit and the Goods and Services Tax/Harmonized Sales Tax credit, where a separated couple remains at the same address and a change in marital status is requested, the CRA will generally request information before changing the status of the individuals and disburse the tax benefits claimed. (3) List of pertinent information provided.

Raisons: (1) It is the CRA's long standing position that it is possible for separated individuals to live separate and apart, while still occupying the same residence. However, whether individuals live separate and apart for Canadian income tax purposes is a question of fact that must be determined on a case-by-case basis. (2) ABSB, Individual returns Directorate and Benefit Programs Directorate’s process. (3) ABSB, Individual returns Directorate and Benefit Programs Directorate’s process.

Principales Questions: Plusieurs questions au sujet des allocations kilométriques raisonnables et des frais de fonctionnement d'une automobile / Various questions on reasonable allowances based on number of kilometers and operating expenses of an automobile

Position Adoptée: Voir le document / See document

Raisons: Voir le document / See document

Principales Questions: 1. Est-ce que les allocations automobiles versées dans les différents scénarios proposés sont raisonnable ?/ Are the car allowances paid in the various proposed scenarios reasonable ? 2. Est-ce qu'un employé peut réclamer des frais afférents à l'utilisation de son véhicule à moteur dans l'exercice de son emploi si son employeur est d'avis que l'allocation versée pour l'utilisation dudit véhicule est raisonnable (alors que l'employé est d'avis contraire) ? / Can an employee claim a deduction for the use of his motor vehicle in the course of his employment if his employer is of the opinion that the allowance paid for the use of the said vehicle is reasonable (contrary to the employee’s opinion) ? 3. Est-ce que l'ARC peut préciser le montant des dépenses admissibles que peut réclamer un employé pour l'utilisation de son véhicule à moteur dans divers scénarios ? / Can the CRA specify the amount of eligible expenses an employee may claim for the use of his or her motor vehicle under various scenarios ?

Position Adoptée: 1. Commentaires généraux / General comments. 2. Non / No. 3. Non / No.

Raisons: 1.Les commentaires généraux seront utiles pour répondre aux questions spécifiques / General comments will be helpful in answering specific questions. 2. Une des conditions à remplir pour qu'un employé puisse réclamer des dépenses d'emploi est qu’il doit joindre à sa déclaration de revenu le formulaire prescrit signé par son employeur, qui atteste que les conditions de travail énoncées à l’alinéa 8(1)h.1) sont remplies. Si l'employeur croit que l'allocation reçue par l'employé est raisonnable, les conditions énoncées à l’alinéa 8(1)h.1) ne sont pas remplies. L'employeur n'a aucune obligation de produire un tel formulaire. / One of the conditions for an employee to claim employment expenses is that he must enclose with his return the prescribed form signed by his employer certifying that the conditions of employment set out in paragraph 8(1)(h.1) are met. If the employer believes that the allowance received by the employee is reasonable, the conditions set out in paragraph 8(1)(h.1) would not be met. The employer has no obligation to produce such a form. 3. Cette Direction ne confirme aucun traitement fiscal résultant d'une situation donnée sauf dans le cadre d’une demande de décision anticipée. / This Directorate does not confirm any tax treatment resulting from a given situation except in the context of a request for an advance income tax ruling.