25 May 1998 External T.I. 9812485 - TRAVEL EXPENSES WHILE ON TRAINING

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:

Deduction of travel expenses of employee while on training, whether ‘ordinarily required to carry on duties of employment away from the employer’s place of business’; application of Tremblay decision

Position:

Department’s position to restrict application of Tremblay decision to identical facts

Reasons:

Decision based on facts of case and not considered precedent setting.

Officer In Charge
National Compensation Policy Centre
RCMP		5-981248
1200 Vanier Parkway	Nancy Graham, CA
Ottawa  ON  K0A 0R2

Attention: Sgt. Reynolds

May 25, 1998

Dear Sir:

Re: Tremblay v. Canada (98 DTC 6008)

You have written to us requesting guidance concerning the application of the above judicial decision where an RCMP employee was allowed to deduct certain expenses under paragraph 8(1)(h) of the Income Tax Act. These expenses were allowed as travel expenses of the employee while on training.

Specifically, you asked:

1. Is Revenue Canada appealing this decision?

No, Revenue Canada is not appealing this decision. It is the Department’s opinion that in order to be accorded the same tax treatment, one must be in the same factual situation as Tremblay.

2. What retroactivity period will be authorized for tax adjustments?

Revenue Canada does not retroactively apply court decisions. However, individuals in identical circumstances can request such a change within the period of time allowed for filing a Notice of Objection. Subsection 165(1) enables an individual taxpayer to file a notice of objection, in writing, by the later of one year after the taxpayer’s filing due date for the year and 90 days after the day of mailing of the notice of assessment. For example, if an individual filed their 1997 return on April 30, 1998, and was assessed May 15, 1998, they would have until April 30, 1999, to file a notice of objection.

3. What certification/documentation will be required from the employer (RCMP) to facilitate adjustments?

For an employee to be able to claim the expenses allowed in Tremblay, the employee must fit into the exact facts of Tremblay. As you have advised us that the RCMP’s usual practice is not to post an employee until training is completed, we would not anticipate that other employees would fit within this fact scenario. Accordingly, there would be no need to provide documentation to your employees. Should another employee fit within these exact facts, the RCMP should be prepared, if requested by Revenue Canada, to confirm where the employee was ordinarily required to carry on the duties of office or employment at the time in question and that the other requirements of paragraph 8(1)(h) are met.

We trust that these comments will be of assistance.

Yours truly,

Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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