Income Tax Severed Letters - 2019-12-11

Ministerial Correspondence

24 October 2019 Ministerial Correspondence 2019-0824301M4 - Completion of information slips

Unedited CRA Tags
Section 162 of the Act, sections 201 and 204 of the Income Tax Regulations

Principal Issues: Details of the legal requirement to complete information slips (e.g., T3, T5)

Position: Required to complete the information slip. Remitting incomplete forms could result in a penalty. If an error is found, it should be corrected.

Reasons: Section 162 of the Act, subsections 201(1), 201(2) and 204 of the Income Tax Regulations

Technical Interpretation - External

6 November 2019 External T.I. 2019-0821351E5 - Reimbursed Moving Expenses

Unedited CRA Tags
6(1)(a); 62(1)

Principal Issues: Whether the timing of an employer’s reimbursement of certain moving-related expenses incurred by an employee affects the tax treatment of the taxable benefit.

Position: Likely no.

Reasons: It is unlikely that the CRA’s administrative position regarding the income tax treatment of reimbursed house hunting costs, legal fees, or land transfer taxes would be affected in situations where there is a delay or gap between the time an individual incurs the expenses and an employer reimburses those expenses, provided that it is reasonable to conclude that the expenses were incurred in connection with the move.