5 March 1991 Ministerial Correspondence 900024 F - Salesman's Expenses

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.

Subject: Adverse decisions, Federal Court of Appeal

19(1)

The above judgments are final and binding.  The above cases required interpretation of paragraph 8(1)(f) and 8(1)(h) of the Act, namely, whether:

•     the taxpayers were ORDINARILY REQUIRED to carry on the duties of their employer away from their employers' place of business, and

•     the CONTRACTS of employment REQUIRED them to pay their own expenses.

The Court found that:

•     the expression ORDINARILY REQUIRED is met if:

1)     it is an implied term of the contract of employment that the employee is required to carry out SOME of the work away from the employer's place of business, and

     failure to meet the implied requirement would likely result in an unsatisfactory performance

     or

2)     both the employee and employer recognize that a satisfactory performance can only be achieved by conducting some of the work away from the employer's place of business.

21(1)(b)

R.D. WeilChiefPersonal and General SectionBusiness and General DivisionRulings Directorate

c.c. Jacques Jacques Grisé Publications