8 June 1993 Income Tax Severed Letter 9307755 - Travelling 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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

                                                   5-930775
XXXXXXXXXX                                         Robert Gagnon
                                                   (613) 957-8953
June 8, 1993

Dear Sir:

Re: Travelling expenses

This is in reply to your letter of February 18, 1993 wherein you requested a technical interpretation concerning travelling expenses.

Expenses in respect of a proposed business (such as travelling expenses) that are incurred prior to the commencement of the business are not deductible against income in the year the expenses were incurred, and cannot be applied against income of any subsequent year.

The foregoing comment is not a ruling and, in accordance with the guidelines set out in Information Circular 70-6R2 dated September 28, 1990, is not binding on the Department.

This Department responsibility is to interpret and administer the Income Tax Act. It is the practice of this Department not to answer questions that are not related to the interpretation and administration of the Income Tax Act. We cannot therefore answer your second question.

We trust our comments will be of assistance to you.

Yours truly,

for Director Financial Industries Division Rulings Directorate