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.
June 23, 1994
XXXXXXXXXX District Office HEAD OFFICE
Client Assistance Division Rulings Directorate
D. Zion
Attention: XXXXXXXXXX (613) 957-8953
940565
Away-From-Home Expenses
We are writing in response to your memorandum of March 4, 1994 concerning the above noted subject. We apologize for the delay in responding.
More specifically, you have been provided two situations from a client and have been asked whether a deduction for meals would be available. You have advised us that the client,
XXXXXXXXXX
XXXXXXXXXX
In the comments that follow, unless otherwise stated, all statute references are to the Income Tax Act S.C. 1970-71-72, c.63 as amended, consolidated to June 10, 1993.
In the discussion set out in your memorandum, you outline the reasons as to why a deduction for meals would not be available under paragraphs 8(1)(f), (h) and (g) and subparagraph 8(1)(e)(ii) of the Act in the above situations. The only other provision which could be available to the client is subparagraph 8(1)(e)(i) of the Act. You are of the opinion that whether or not this is available and the subsequent application to the two situations would be contingent on what is intended by the phrase "away from his ordinary place of residence ..." contained therein. One view is that the town is where the employee ordinarily resides and reports to work. Given that this is the case, then you are of the opinion that the fact that the job is outside the town limits does not mean that the employee is employed away from his ordinary place of residence and therefore, the employee would not be able to claim a deduction for meals in either situation.
On the other hand, there is the view that the employee is employed away from his ordinary place of residence. In this case, the employee described in situation A would be entitled to a deduction for one meal every day. Those employees in situation B would only be allowed a deduction for a meal if on a particular day they were outside the municipal area for a period of at least four hours. You have asked us to advise which of these views is correct.
We would first like to mention that we are in agreement with your view that these employees would not be eligible for a deduction for meals under paragraphs 8(1)(f), (h) and (g) and subparagraph 8(1)(e)(ii) of the Act. The next issue to be reviewed is whether subparagraph 8(1)(e)(i) of the Act would be applicable to the situations at hand.
Subparagraph 8(1)(e)(i) provides that "amounts disbursed by the taxpayer in the year for meals and lodging while employed by a railway company away from his ordinary place of residence as a relieving telegrapher or station agent or on maintenance and repair work," are deductible to "the extent that he has not been reimbursed and is not entitled to be reimbursed in respect thereof;". It is our view that the "ordinary place of residence" would in this case be the community in which the employee resides. The fact that the employee first reports to a work terminal in the community at the beginning and end of the work day would be of no consequence to the application of this subparagraph.
Therefore, in our opinion, the second view outlined in your letter would be applicable. The employee in situation A would be entitled to a deduction for one meal every day while those in situation B would be entitled to a deduction for one meal if they were outside the municipal area for a period of at least four hours. This would be in keeping with the comments contained in paragraph 14 of Information Circular 73-21R7 Away-From-Home Expenses to which you refer in your memorandum.
We trust that our comments have been of assistance.
P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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