10 May 1994 External T.I. 9410755 - FORM T2200 - TELEWORK PROGRAM

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.

Immigration and Refugee Board of Canada
Personnel Division
240 Bank Street, 3rd Floor				941075
Ottawa, Ontario						D. Zion
K1A 0K1

Attention: Nicole B. Lelièvre-Lafontaine

May 10, 1994

Dear Ms Lelièvre-Lafontaine:

Re: Form T2200 - Telework Program

We are writing in response to your correspondence of April 22, 1994 and prior telephone conversations (Lelièvre- Lafontaine/Fuoco) regarding the completion of form T2200 "Declaration of Conditions of Employment" for those employees involved in a voluntary telework agreement. You have indicated that there is some confusion as to the appropriate responses to questions 3, 4 and 10 in form T2200 regarding the term "require".

In the following comments, 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 (the "Act").

Form T2200, pursuant to subsection 8(10) of the Act, is the prescribed form which must be signed by an employer certifying that the required conditions were met in order to claim deductions under paragraphs 8(1)(f), (h), or (h.1), as well as subparagraphs 8(1)(i)(i),(ii) and (iii) of the Act. Thus, due to its multi-purpose use, some of the questions contained in form T2200 are not applicable in all situations and the terminology is rather generic.

In our view, even though participation in the telework program is voluntary, once the parties enter into the agreement, it is binding until the agreement is terminated. If the agreement which governs during the existence of the telework relationship obligates (requires) the employee to supply and pay for supplies consumed directly in the performance of the duties, amounts paid by the employee for such supplies would be deductible pursuant to subparagraph 8(1)(i)(iii), provided that the appropriate employer's certification (form T2200) were filed with the employee's income tax return as required by subsection 8(10) of the Act. Provision of work space in the home by the employee and responsibility for the additional costs involved in providing the work space, as required by such an agreement would similarly be deductible pursuant to subparagraph 8(1)(i)(ii), as restricted by subsection 8(13) of the Act. Subsection 8(13) prohibits the deductibility of expenses under subparagraphs 8(1)(i)(ii) and (iii) in respect of an office in the home unless "...the individual principally performs the duties of the office or employment..." in that office. For the purposes of the Income Tax Act generally, and in reference to subsection 8(13) of the Act specifically, we interpret the term "principally" to mean more than 50% of the time.

We trust our comments will be of assistance to you.

Yours truly,

J.A. Szeszycki
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

c.c. Client Assistance Directorate

T1 Returns & Guides Division