10 August 2010 External T.I. 2010-0375251E5 - Province of Employment

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: What is the province of employment for an employee who lives in and has his sales territory in Quebec and who reports to an office and manager in Ontario.

Position: Province of employment is Ontario.

Reasons: Regulation 100(4).

XXXXXXXXXX 								2010-037525
									Andrea Boyle, CGA
August 10, 2010

Dear XXXXXXXXXX

Re: Province of Employment

We are writing in response to your email of July 19, 2010. You have indicated that you have an employee who lives in and has his sales territory in Quebec. The employee reports to an office and manager in XXXXXXXXXX , Ontario. You have asked whether the province of employment is Quebec or Ontario.

The particular situation outlined in your email appears to relate to a factual one, involving a specific taxpayer. Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant tax services office. We are, however, prepared to offer the following general comments, which may be of assistance.

The issue you have raised is addressed in the Employers' Guide: Payroll Deductions and Remittances - T4001 Rev. 2009 which provides the following information:

If the employee reports for work at your place of business, the province or territory of employment is the province or territory where your business is located.
...
If you do not require your employee to report for work at your place of business, (for example, per the employment contract, the employee works from a home office), the employee's province or territory of employment is the province or territory where your business is located and from where you pay your employee's salary.

Based on the information which you have provided, the employee reports for work at an establishment in Ontario, therefore the province of employment would be Ontario.

We trust that these comments will be of assistance.

Yours truly,

Randy Hewlett
Manager
for Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch