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.
PRINCIPAL ISSUES:
Whether transportation expenses incurred byTax Volunteers considered Gift to HER Majesty?
POSITION:
NO
REASONS:
To be considered a gift property must be transferred. Transportation Expenses are not property.
MINISTER/DEPUTY MINISTER'S OFFICE 96-01922M ADM'S OFFICE RETURN TO 15TH FLOOR, ALBION TOWER
July 19, 1996
XXXXXXXXXX
Dear XXXXXXXXXX
I am responding to your letter of February 26, 1996, addressed to the Honourable David Anderson, former Minister of National Revenue, concerning the tax treatment of transportation expenses incurred by tax volunteers in the performance of their duties. The volunteers are asking that these transportation expenses be considered a "Gift to Canada". I apologize for the delay of my reply.
We have previously examined the issue of expenses incurred by volunteers in the performance of their duties and have concluded that there is no provision in the Income Tax Act that would allow a tax credit or a deduction in respect of these expenses. Although section 118.1 of the Act allows a tax credit for gifts made to Her Majesty, the word "gift" is not defined in the Act. A large body of case law has concluded that a gift, for purposes of section 118.1 of the Act, is a voluntary transfer of property without valuable consideration. However, transportation expenses incurred by tax volunteers would not constitute property and, therefore, could not be considered a gift made to Her Majesty. Similarly, expenses incurred by other volunteers, in the performance of their duties, are also not considered gifts to Her Majesty. As the role of Revenue Canada is to administer and enforce the Act as passed by Parliament and Parliament has not made a provision in this regard, we are unable to accommodate your request.
I would like to commend you and the other tax volunteers who so generously assist others with the filing of their annual returns. Your efforts are well noted and crucial to the continued success of the volunteer program.
I appreciate the opportunity to comment on this matter.
Yours sincerely, Pierre Gravelle, Q.C.
Wm. P. Guglich 957-2102 May 30, 1996
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© Her Majesty the Queen in Right of Canada, 1996
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© Sa Majesté la Reine du Chef du Canada, 1996
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