18 April 2013 External T.I. 2013-0481951E5 - Volunteer Firefighters Tax Credit

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.

Principal Issues: 1. Meaning of on call.
2. Do hours devoted to fundraising qualify as eligible volunteer firefighting services?

Position: 1. The CRA expects that each fire department will certify time for services, including on call hours, in accordance with its own expectations, operational requirements, policies and procedures.
2. Only fundraising activities which directly involve the use of firefighting training, skills or equipment qualify as eligible volunteer firefighting services.

Reasons: 1. Generally a question of fact.

XXXXXXXXXX
2013-048195
Robert Dubis
April 18, 2013

Dear XXXXXXXXXX:

We are replying to your letter of March 3, 2013 asking for information regarding the types of activities that could qualify for the Volunteer Firefighters Tax Credit (VFTC). Specifically, you requested our interpretation of the expression on-call as used in the definition of eligible volunteer firefighting services in the context of the VFTC.

To qualify for the VFTC, individuals must be a volunteer firefighter in the year and complete a minimum of 200 hours of eligible volunteer firefighter services with one or more fire departments in the year.

Eligible volunteer firefighter services give consideration to all services that are provided to a fire department in the capacity as a volunteer firefighter but those services must consist primarily of the following ("primary services"):

• responding to and being on call for firefighting and related emergency calls as a firefighter;
• attending meetings held by the fire department; and
• participating in required training related to the prevention or suppression of fire.

For the purpose of completing the minimum 200 hours of eligible volunteer firefighter services, the number of hours devoted to the primary services described above must exceed the number of hours devoted to other services for a particular fire department. The Canada Revenue Agency (CRA) expects that each fire department will examine its on-call procedures to certify the number of hours of eligible volunteer firefighting services. When certifying volunteer firefighter's eligible hours, it is the CRA's view that a fire department should assess each volunteer's on-call availability for response in accordance with its own departmental expectations, operational requirements, and applicable policies and procedures. Although a volunteer may carry a pager or a phone to receive notifications of an emergency, carrying such a device in itself does not establish that the individual was on call.

Time spent by individuals to provide other services to a fire department in the capacity of a volunteer firefighter could also qualify as eligible volunteer firefighter services. Other services could include time spent repairing and maintaining vehicles and equipment used by the fire department. Time spent by individuals fundraising for equipment replacement and maintenance would not qualify as eligible firefighter services when the activity is similar to other general community fundraising activities (e.g. selling raffle tickets) because there is no requirement for any training or skills as a firefighter. However, time spent on fundraising activities which directly involve the use of firefighting training, skills or equipment (e.g. public education and fire prevention activities, equipment demonstrations) could qualify as eligible volunteer firefighter services. An individual cannot earn both on-call hours and time for other services during the same time period.

Individuals should rely on their fire department to determine the number of hours of eligible volunteer firefighter services that have been completed in the year. A written certification from a fire chief or delegated official within the fire department may be requested by the Canada Revenue Agency to verify claims for the VFTC.

We trust that the information provided is helpful.

Yours truly,

Sharmini Ratnasingham
for Director
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch