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 non-profit society provides meals to staff at their residential Psychiatric Boarding homes. The staff are required to have meals with the residents for reasons of role modelling and family type interaction. The XXXXXXXXXX TSO have confirmed to them that this would not result in a taxable benefit and they were referred to us for written confirmation.
Position TAKEN:
No taxable benefit is received.
Reasons FOR POSITION TAKEN:
The staff are required to be on duty throughout the meal periods for security, training and teaching reasons.
XXXXXXXXXX 5-990322
D. Miller
Attention: XXXXXXXXXX
March 23, 1999
Dear XXXXXXXXXX:
Re: Taxable Benefit For Meals
This is in reply to your letter of January 29, 1999, regarding meals provided to staff at your residential Psychiatric Boarding homes. The XXXXXXXXXX Tax Services Office (TSO) has verbally informed you that there is no taxable benefit but you would like us to confirm this in writing.
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3, dated December 30, 1996. Where the particular transactions are completed, as in this case, the enquiry should be dealt with by the TSO. However, we are prepared to offer the following general comments.
Generally, the value of free meals constitute a taxable benefit under paragraph 6(1)(a) of the Income Tax Act (the Act). The provision of free meals to the staff does not fall within any of the exceptions described in subparagraphs 6(1)(a)(i) through (v) of the Act. However, in circumstances where staff must be on duty at all times throughout the meal periods for security, training and teaching reasons, it is generally the Department's view that the value of the meals provided will not be considered a taxable benefit.
We trust that these comments will be of assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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