25 April 1997 Ministerial Letter 9704488 - PERKS TO GOVERNMENT EMPLOYEES

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 elected officials receive perks not available to other taxpayers

Position:

Generally, elected officials are taxed under the same provisions of the Income Tax Act. An allowance or reimbursement of the personal expenses of an officer or employee is a taxable benefit unless the amount is specifically exempted by legislation

Reasons:

ADM'S OFFICE (2) 97-00881M
RETURN TO 15TH FLOOR, ALBION TOWER

April 25, 1997

XXXXXXXXXX

Dear XXXXXXXXXX:

This is with reference to your comments of January 22, 1997, which were forwarded to our Minister, the Honourable Jane Stewart, in connection with a newspaper article entitled "Fed perqs illegal: MP."

The confidentiality provisions of the Income Tax Act prevent me from discussing the details of any individual's income tax situation. However, I can provide you with the following general comments.

Public sector employees, publicly elected officials and individuals appointed in a representative capacity to an office are generally taxed under the same provisions of the Income Tax Act, as all other employees. An allowance or reimbursement of the personal expenses of an officer or employee is a taxable benefit unless the amount is specifically exempted by legislation. This is true whether the officer or employee works in the private sector, public sector, is elected by popular vote or is appointed in a representative capacity. The department applies the same criteria to politicians and appointees as to all other taxpayers.

I hope that these comments clarify the department's position on this matter.

            Yours sincerely,

            Denis Lefebvre
            Assistant Deputy Minister
            Policy and Legislation Branch

Sandra Short
March 4, 1997
957-2136