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:
a) Whether rent paid instead of hotel is deductible
b) What is a fair and reasonable daily amount for meals
c) Is the furniture in the rented apartment deductible
Position:
Cannot provide answer
Reasons:
These issues have been audited and a Notice of Assessment issued. The procedure to be followed by the taxpayer is the filing of a Notice of Objection
980021
XXXXXXXXXX N. Mondou, M.Fisc.
Attention: XXXXXXXXXX
March 4, 1998
Dear Sir:
Re: Expenses for meals and accommodation provided to employees
This is in reply to your letter dated December 19, 1997, in which you requested a technical interpretation with respect to meals and accommodation provided to sales agents.
In a telephone conversation (XXXXXXXXXX/Mondou), you indicated that the issues in question had been audited by Revenue Canada and that a Notice of Assessment or Reassessment had been issued.
As stated in paragraph 15 of the Information Circular 70-6R3 ("Advance Income Tax Rulings"), an advance income tax ruling will not be issued when the tax effect of a transaction is under discussion with the taxpayer, in dispute or under assessment or proposed assessment. The same rule applies for technical interpretations.
The procedure to object to a Notice of Assessment or Reassessment is set out in paragraph 165(1) of the Income Tax Act and consists of filing a Notice of Objection. In the case of a corporation, this Notice of Objection should be filed no later than the day that is 90 days after the date of mailing of the Notice of Assessment or Reassessment.
We trust that these comments are of assistance.
Yours truly,
P. Spice
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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