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: Can float employees who are assigned to various work stations, sometimes only one to two hours before the start of their shift, deduct motor vehicle expenses incurred in traveling to the assigned work station from their home and back again. They are not paid a traveling allowance by the employer.
Position: A question of fact, but probably not.
Reasons: The requirements under s. 8(1)(h.1) are not met since the work station would probably be considered their regular place of employment and the travel would be personal. According to Interpretation Bulletin IT-522R, a place of business generally means a permanent establishment of the employer and can mean a construction site if a field office is located there. An employee can have more than one regular place of employment and the nature of some employment situations is that more than one location can be viewed as a regular workplace.
XXXXXXXXXX
2011-040090
B. Ruttan-Morillo
August 25, 2011
Dear XXXXXXXXXX :
Re: Motor Vehicle Expenses
I am writing in response to your letter of March 28, 2011 concerning the deductibility of motor vehicle expenses under paragraph 8(1)(h.1) of the Income Tax Act ("ITA").
In the situation you described, a company has full-time employees who may be assigned to any of several work locations of the employer on any particular day, at the discretion of the employer.
When considering the deductibility of travel expenses or motor vehicle expenses under section 8 of the ITA, one of the factors that must be considered is whether the employee's place of work is considered to be his or her "regular place of employment".
Generally, it is the view of the CRA that any location to which an employee regularly reports for work or performs the duties of the office or employment, is considered to be a regular place of employment. Travel to these locations would not be considered traveling in the performance of the duties of the office or employment when the employee is traveling from his or her residence to the employer's place of business.
We trust these comments will be of assistance.
Phil Jolie
Director
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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