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:
can the non-taxable benefit from transportation between special work site and p/r of employee include travel costs of employee's spouse and children?
Position:
yes, provided that the conditions of the provision are otherwise met
Reasons:
unlike the reference to board and lodging in 6(6)(a), the reference to transportation between the principal place of residence and the special work site is unmodified so that it is not restricted to the cost of transporting the employee only
A. Humenuk
XXXXXXXXXX 962793
Attention: XXXXXXXXXX
November 28, 1996
Dear XXXXXXXXXX:
Re: Transportation to a Special Work Site
We are replying to your letter of August 12, 1996, in which you ask whether the reference in paragraph 6(6)(b) of the Income Tax Act (the Act) to "transportation" between a special work site and an employee's principal place of residence is restricted to the transportation of the employee.
You note that in some situations, it is more practical to have an employee's spouse and children visit the employee at the special work site than to permit the employee to return to the employee's principal place of residence. It is your view that the exemption in paragraph 6(6)(b) of the Act can encompass the value of any benefit derived by the employee from the transportation of individuals other than the employee as long as the transportation in question is between the special work site and the employee's principal place of residence.
It is our view that the value of the benefit derived by an employee from the payment of transportation costs of the employee's family members between the employee's principal place of residence and a special work site, as defined in subparagraph 6(6)(a)(i) of the Act, is not required to be included in the employee's income by reason of paragraph 6(6)(b) of the Act, assuming that the conditions in that provision are otherwise met.
We trust our comments will be of assistance to you.
Yours truly,
John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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