25 October 1999 External T.I. 9919915 - VOLUNTEERS AMBULANCE TECHNICIANS

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: An association provides ambulance services to rural areas, towns, villages, and municipalities. These entities appoint members to the board of the association which is responsible for the overall operation of the association.

One of the individuals, who was hired to provide ambulance services as an ambulance technician, also carries out administrative services as the co-ordinator of the ambulance services (an administrative position). The individual receives $XXXXXXXXXX for his duties as the co-ordinator.

1. With respect to the co-ordinator, paragraph 8(1)(a) of the Act sets out an exclusion where the taxpayer is employed in the year by the employer "in connection with the performance of any of the duties referred in subparagraph (ii) or similar duties" (subparagraph (ii) refers to an ambulance technician, or a firefighter, or a person who assists in the search or rescue of individuals or in other emergency situations"). Is this exclusion applicable to the co-ordinator?

2. Are the individuals, who are considered to be volunteers and are hired by an association to provide ambulance services, eligible for the deduction under paragraph 8(1)(a) of the Income Tax Act?

Position: 1. No 2. Yes

Reasons: 1. As the duties of the co-ordinator are administrative, the exclusion is not considered to be applicable. The position is also consistent with technical comments made by the Department of Finance which state that "the deduction will not, however, be available to a volunteer who is also employed by the same government, municipality or public authority to perform, otherwise than as a volunteer, the same or similar duties."

2. The information provided to us indicates that all the necessary requirements have been satisfied. A summary of their circumstances is that the individuals receive $XXXXXXXXXX for the first hour of an emergency call and $XXXXXXXXXX to $XXXXXXXXXX for each additional hour. However, in the case of "on call" time they are only paid at the rate of $XXXXXXXXXX per hour and amounts they are paid for "on call" time accounts for XXXXXXXXXX % to XXXXXXXXXX % of the remuneration they receive for being emergency medical personnel.

XXXXXXXXXX 991991
M. Eisner
Attention: XXXXXXXXXX

October 25, 1999

Dear Sir:

Re: Volunteer Ambulance Attendants

This is in reply to your letter of June 21, 1999, concerning the $1,000 deduction provided under paragraph 8(1)(a) of the Income Tax Act (the "Act") for 1998 and subsequent taxation years. We also acknowledge our telephone conversation on August 26 and September 7, 1999, in which we obtained clarification of your situation.

XXXXXXXXXX provides ambulance service to a particular area in XXXXXXXXXX. These entities appoint their members to the Board of XXXXXXXXXX which is responsible for the overall operation of the XXXXXXXXXX.

For the purposes of providing the ambulance services, XXXXXXXXXX has employed approximately XXXXXXXXXX individuals (the "Individuals"), including yourself, as emergency medical technicians and emergency medical responders. The minimum educational requirement is that each Individual hold an Emergency Medical Responder certificate, which involves classes and home study of 100 to 200 hours. The Individuals render these services on a volunteer basis.

A few Individuals also carry out administrative responsibilities for the XXXXXXXXXX for which they may receive remuneration. As the co-ordinator, you receive $XXXXXXXXXX a month. However, an Individual is not required to perform these administrative services in order to carry out his or her duties as a volunteer with respect to medical emergencies.

The Individuals, who are considered to be volunteers involved with respect to medical emergencies, are remunerated at the rate of $XXXXXXXXXX per hour while they are on call. When an emergency call has been received by an Individual, he or she is remunerated at the rate of $XXXXXXXXXX for the first hour and at a rate that ranges between $XXXXXXXXXX and $XXXXXXXXXX for each additional hour. Approximately XXXXXXXXXX% to XXXXXXXXXX% of the funds paid to the Individuals relate to time periods that they are on call. In a typical year, an Individual may actually work as a volunteer ambulance technician for XXXXXXXXXX hours.

The Individuals may also visit schools, be available at certain events in case medical services are required, take additional training courses, or attend meetings in connection with the medical services they provide. The Individuals are not remunerated for these services.

Our Comments

For 1998 and subsequent years, paragraph 8(1)(a) of the Act allows a deduction from income up to the maximum of $1,000 to an employee for the performance of the individual's duties as an ambulance technician, firefighter, or a person assisting in search and rescue or other emergency situations. In relation to the above circumstances, the deduction must relate to the performance of an employee's volunteer duties as an ambulance technician. Specifically excluded are employees, who are employed in the year, otherwise than as a volunteer by the employer, in connection with the duties referred to.

Based on the information set out above, it is our view that the Individuals involved in any of these duties, are entitled to a deduction pursuant to paragraph 8(1)(a) of the Act with respect to their volunteer duties as emergency medical personnel.

As a further comment, the individuals will only be entitled to a deduction under paragraph 8(1)(a) of the Act if a prescribed form signed by the employer (form T2200 "Declaration of Conditions of Employment) is filed by the employee with his or her return of income indicating that the employee satisfied the requirements of paragraph 8(1)(a).

We also refer you to the enclosed copy of News Release 99-055 in which the Department of Finance has indicated that for the purposes of simplifying administration for public authorities, the deduction under paragraph 8(1)(a) of the Act will be replaced with a corresponding exclusion from employment income for income tax purposes. This proposed change will have no income tax implications for volunteer emergency service providers. For information on this proposed change in relation to current reporting requirements, you should contact your local tax services office.

We trust our comments will be of assistance to you.

Yours truly,

John Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

??

- 3 -